It seems that Rental prices are continuing to plummet in Spain, at least in the coastal areas. Lamp posts and bus stops are covered in adverts from desperate landlords offering their property to rent for peanuts.  Each new advert asking for less money than the last.

A little while back I wrote about how I negotiated a 20% discount on my rent from my lanlord.  I'm now paying just 400 Euros per month for a 3 bed, 3 storey town house just 2 km from the sea.

Recently, while playing golf, we got talking to a guy who was living in one of the appartments overlooking the golf course.  It turns out he was renting a 2 Bed Appartment for only 200 euros per month, and this included electricity and water.  They're not the best looking appartments in the world, but for 200 euros per month, there can't be too many complaints.

These appartments are still being sold by the developer/bank, with discounted prices from 144,000 euros for a 2 bed appartment, which is laughable really.  Especially given that only around 20% of them have been sold.  What is a property that generates 2,400 euros per year in rental income (before expenses)really worth?  I would say 30,000 euros, maybe 35,000 euros at a push.  I know this is an extreme example, but based on overall rental yields, I would say Spanish property still has quite a way to fall before it becomes cheap.

Here's a pic of the above mentioned urbanisation.