Only in San Sebastián is renting preferable to buying, even in the long term, according to UVE Ratings


The mortgage payment exceeded the rental payment in nine municipalities in Spain and in 44 municipalities it accounted for more than 75% of the rent in December 2023, according to a study carried out by UVE Valuations.

Thus, of the 63 municipalities with the largest population in Spain – over 100,000 inhabitants – studied in this report, in San Sebastián, Marbella, Alcobendas, Pamplona, ​​Cádiz, Palma de Mallorca, A Coruña, Bilbao and Madrid pay the Mortgage is more expensive than paying rent.

Furthermore, the number of municipalities in which the mortgage payment represents 75% of the rent has increased, since in November 2022 they represented 64% of the total number of municipalities, while in December 2023 they represented 70% of the total number of municipalities. , that is, 44 of the 63 studied.

The study indicates that the rapid changes in mortgage rates have “considerably” modified upwards the installments to be paid for the acquisition of a home, while rents have continued to become more expensive in most towns, but ” very unequal” in each of them, which has led to “a change in the relationship between mortgage payments and rents in most municipalities.

However, the president of UVE Valuations, Germán Pérez Barrio, has explained that the fact that the installments are higher than the rents “does not imply that it is better to rent than to buy in the long term.” Thus, only in San Sebastián is it “clearly preferable to rent over buying even in the long term” taking into account that the balance between buying and renting is reached when the installments are about 35% higher than the rents.

A year ago, only in 11 municipalities of the 110 studied then, rents were higher than rents. These were San Sebastián, Alcobendas, Palma de Mallorca, Marbella, La Coruña and Pamplona, ​​all municipalities with more than 100,000 inhabitants.

Likewise, there were Getxo, Sant Cugat del Vallès, Pozuelo de Alarcón, Majadahonda, Rivas-Vaciamadrid and Pamplona, ​​municipalities with less than 100,000 inhabitants.

To carry out this analysis, UVE Valuations has used Idealista data on offer prices for sale and rent in the 63 municipalities with more than 100,000 inhabitants, to calculate the mortgage payment that would correspond to a loan of 80% of the value of the property. offer with a duration of 24.5 years and an interest rate of 4.276% (latest data published by the AHE).