Rental prices in Spain at record high

Rental prices in Spain rose to a new record high in February 2024. According to the latest price report from Idealista, rents rose by 11% compared to the previous year, reaching a national average of 14 euros per square metre. The increase was particularly strong in the metropolises of Barcelona (+13.7%) and Madrid (+13.4%).

Rents rising across the board - Record increases in several cities
Overall, prices rose in 47 Spanish provincial capitals compared to the previous year - only Lleida recorded a slight decline of 1.2%. The strongest increase in rents was recorded in Palencia (+17.9%), followed by Ávila (+16.5%), León (+14.4%), Valencia (+14.3%) and the aforementioned leaders Barcelona and Madrid.

Tenants also had to dig deep into their pockets in other sought-after residential markets, including Málaga (+10.6%), Palma (+10.2%), Alicante (+9.8%), Bilbao (+8.8%) and Seville (+8.6%).

Barcelona remains the most expensive city in Spain with an average of 23.7 euros/m², followed by Madrid (21.2 euros/m²) and San Sebastián (17.7 euros/m²). In more affordable cities such as Ciudad Real (7.2 euros/m²) and Badajoz (7.5 euros/m²), rents are still significantly lower.

Regional trends: All provinces affected, Madrid with highest increase
Rents have risen across the board, not only in the cities but also at provincial level. Teruel recorded the highest increase at +21.3%, followed by Zamora (+17.1%), Ávila (+15.9%) and Palencia (+15.5%). Guipúzcoa (2.6%) and Badajoz (2.8%) reported the lowest price increases.
The Madrid region (+14.4%) tops the list of autonomous communities with the strongest price increases, followed by Asturias (+12.5%), Aragon (+12.5%), Catalonia (+12.1%) and the Valencia region (+11.8%).
Overall, rents are at an all-time high in half of Spain. The most expensive regions remain Madrid (19.2 euros/m²), Catalonia (18.4 euros/m²) and the Balearic Islands (18.1 euros/m²), while prices are lowest in Extremadura (6.8 euros/m²) and Castilla-La Mancha (7.5 euros/m²).

The latest figures from Idealista show that the Spanish rental market remains under pressure. While demand continues to increase, particularly in the economically strong urban centres, supply remains scarce - a trend that is unlikely to be reversed for the time being. It remains to be seen whether political measures or market corrections will bring relief in the future.