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The neighbourhoods in Spain’s big cities where rents have fallen the most

We review what's happened to rent prices in some of the main neighbourhoods of Madrid, Barcelona, Valencia, Malaga, Seville and Palma.

The neighbourhoods in Spain's big cities where rents have fallen the most
Barcelona, Valencia and Malaga - three cities in Spain where rents have dropped. Photos: Aleksandar Pasaric/Pexels, Pixabay, Adrianna Calvo/Pexels

Rent prices in Spain rose by 1.4 percent in 2020, which may not seem like great news, but it was actually the first time in five years that rates had almost stagnated.

The average price per square metre across Spain currently stands at €11.1/per month.

However, in the most dynamic markets – Spain’s biggest cities and those popular with foreign visitors – the virtual disappearance of short-term rentals has doubled the number of rental properties available and driven down prices, especially in neighbourhoods where rents had ballooned in recent years due to the barrios’ popularity.

Spanish property experts Idealista recently published their rental price evolution report, which sheds light on what’s happening to rent in the main neighbourhoods of six of Spain’s biggest cities: Madrid, Barcelona, Valencia, Malaga, Seville and Palma.

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Madrid

The average rental price in Madrid fell by 7.3 percent throughout 2020. As of late January 2021 it stood at €15 per square meter per month.

The districts in which the rent has dropped the most are also the Spanish capital’s most expensive:

Centro: down 11 percent
Salamanca: down 10 percent
Arganzuela: down 9 percent
Chamberí: down 8.8 percent
Retiro: down 8.6 percent

Of the 21 districts that make up Madrid, the price has only increased in Villa de Vallecas, by only 1 percent. Currently the cheapest Madrid district is Vicálvaro , which costs €10.2 per square meter per month.

Madrid’s upmarket Salamanca District. Photo: ccsmith85/Flickr

Barcelona

Barcelona, which had seen rents skyrocket in recent years, is no longer the Spanish city where it’s most expensive to rent. Rents have fallen by 9.4 percent, and now the average price is €14.9 per square meter per month, slightly below Madrid.

The districts in which the price has been reduced the most are the following:

Ciutat Vella: down 16.7 percent
Eixample: down 11.6 percent
Les Corts: down 11.2 percent
Sant Martí: down 8.8 percent
Sants-Montjuic: down 7.1 percent

Nou Barris is still the cheapest neighborhood in Barcelona to rent in (€12 per square meter per month) and rent actually dropped by a further 5.6 percent in 2020.

Ciutat Vella district in Barcelona. Photo: Jorge Franganillo/Flickr

Valencia

In Valencia city, rents fell on average by 1.7 percent during the course of 2020, meaning the average rental price is €8.90 per month per square metre.

These are the city districts in which the price drop has been most noticed:

L’Olivereta: down 9.2 percent
Benimaclet: down 8 percent
L’Eixample: down 7.2 percent

The cheapest neighbourhoods in which to rent in Valencia are currently L’Olivereta, Patraix and Jesús , where it costs €7.5 per square metre per month.

Benimaclet district in Valencia in pre-Covid times. Photo: Luis Herram/Flickr

Malaga

The coastal city in Spain’s southern Andalusia region has seen rents drop by 5.6 percent on average. Currently, the average rent in Malaga is €9.8 per square metre per month.

The Malaga neighbourhoods where rents have dropped most are:

Bailén-Miraflores: down 14.8 percent
Ciudad Jardín: down 11.3 percent
Teatinos: down 8.1 percent
Cruz de Humilladero: down 8.1 percent

The most affordable district to rent in Malaga also happens to be one of the ones with the biggest price drop – Ciudad Jardín – where renting an apartment costs €8 per square metre per month.

An aerial view of Malaga. Photo: Pixabay 

Palma (Majorca)

In the Majorcan capital prices have slumped by 6.2 percent, which means the average monthly rent now stands at €11.2 per square metre.

The Palma neigbourhoods with the largest price drops are:

Rafal-Son Forteza: down 12.7 percent
La Vileta-Son Rapinya : down 10.4 percent
Es Forti-Son Cotoner-Son Dameto: down 8.9 percent
Playa de Palma: down 8.2 percent

The most affordable district is Son Ferriol-Sant Jordi, where it costs €8.5 per square metre per month.


Playa de Palma district in the Majorcan Capital offers sea views. Photo: Wikipedia

Seville

In Seville, the coronavirus crisis has dragged rents down by 5.2 percent, which means that the average price per square metre in the Andalusian capital is €10 per month.

These are the Seville districts with the largest rent drops:

Centro: down 10.4 percent
Macarena: down 8.3 percent
Los Remedios: down 8 percent
Bellavista-Jardines de Hércules: down 8 percent

Despite the large drop in prices in Seville’s city centre, it’s still by far the most expensive neighbourhood for tenants at €10.4 per month per square metre.

The cheapest area is Pino Montano, where tenants pay on average €6.9 per month per square metre.


The neighbourhood of Macarena in Seville. Photo: Gzzz/Wikipedia

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PROPERTY

REVEALED: The cheapest most in-demand areas in Spain to buy a house

If you're considering making the move and buying property in Spain, but don't fancy purchasing in a rural village in the middle of nowhere, you should know where the cheapest, most in-demand parts of the country are.

REVEALED: The cheapest most in-demand areas in Spain to buy a house

If you’re thinking about relocating, Spain is a fantastic place to do it. Foreigners have been moving to Spain for decades, not only for its fantastic food and weather, along with a laid-back lifestyle, but housing is generally affordable – if you know where to look.

Though the rise in the Euribor has sent interest rates spiking, house prices in Spain are expected to flatten somewhat in 2023 and it could be a good year to find a bargain, depending on your financial situation.

Knowing what type of house you want and where in Spain you want to live is one thing, but knowing the cheapest, yet most in-demand parts of the country could really help you narrow down your search.

Fortunately, Spain’s leading property website Idealista has put together a list of the most ‘in demand’ municipalities of Spain and where you can find the most expensive and, more importantly for the house hunters among us, the cheapest municipalities of Spain to buy property.

It’s based on data from the last quarter of 2022 and is the average price of housing in towns with more than 1,300 sale announcements and costs valued at more than €1,100 per square metre. 

You can find the ten cheapest areas of Spain to buy property by average price below, but it’s worth noting that Idealista did these rankings by average price across the entire municipality, so there are likely individual towns and villages dotted around Spain where prices are significantly lower.

That said, this list gives you a good idea of the areas to look out for.

READ ALSO:  What will happen with property prices in Spain in 2023?

The 10 cheapest municipalities in Spain to buy property 

Santa Pola (Alicante) – Santa Pola, in the Alicante province, is the cheapest most in-demand municipality to buy a house, according to Idealista’s rankings. The average price for a house in Santa Pola costs just €151,796, though this may come as a surprise given its prime location in a foreign hotspot on the sought-after Costa Blanca. The main town of Santa Pola itself is a small beachfront community with a population of around 35,000. It also has a large foreign population and is a short drive or bus away from both Alicante and Elche.

Ourense (Galicia) – Next on the list is Ourense in Galicia where the average price is €154,941. The municipality is home to several towns and villages, surrounding the main medium-sized town of Ourense itself in southern Galicia. The town has a population of around 105,000 and is a little over an hour’s drive from both Santiago de Compostela and the coastal city of Pontevedra.

Oviedo (Asturias) – Third on the list is the municipality of Oviedo where you’ll pay an average of €154,968 for a property. Another area in northern Spain, the main city Oviedo itself, which is the capital of Asturias and has a population of 220,000. It sits between Cantabrian mountains and the Bay of Biscay. It’s known for its picturesque medieval old town and impressive architecture. 

Jerez de la Frontera (Cádiz) – Properties cost an average of €155,563 in the municipality of Jerez de la Frontera, or Jerez as it’s commonly referred to. It’s located in the Cádiz province of Andalusia and is a real piece of ‘traditional’ Spain. Jerez city is a decent-sized place with a little over 200,000 people and is known for horses, flamenco dancing and sherry, as well as the Alcázar de Jerez, an 11th-century fortress that harks back to Andalusia’s Moorish past.

READ ALSO: Is it better to buy or rent in Spain right now?

Torrevieja (Alicante) – Another municipality in Alicante and another incredibly popular with foreign homeowners. Properties here go for an average of €155,787. Torrevieja itself has a population of 82,000 and is another coastal town, but also has nature trails and salt plains nearby.

Murcia (Murcia) – Murcia is often overlooked, wedged between Alicante and Andalusia, but you could grab a bargain here with average prices of €157,119. Murcia capital is a bustling city of almost 450,000 people, and is strategically placed for trips to the Costa Blanca, Costa Calida, Costa del Sol, and Costa de Almeria.

Parla (Madrid) – The municipality of Parla lies just 20km south of Madrid and the town of the same name is home to 130,000 residents. It’s a great commuter area for those who work in Getafe or the capital. A house here costs an average of €160,652. 

Salamanca (Castilla y León) – The municipality of Salamanca surrounds the capital of Salamanca in Castilla y León in northwestern Spain. Buying a property in this area costs an average of €162,909. The main city of Salamanca is known for its university, which is the oldest in Spain and dates back to 1218. Understandably, much of Salamanca’s roughly 150,000 residents are students, which gives the town a lively atmosphere.

Burgos (Castilla y León) – Another northwestern Castilla y León municipality, is Burgos has around, where you can buy a house for just €163,164. The city of Burgos has around 180,000 inhabitants and is known for its medieval architecture and grand cathedral. 

Dos Hermanas (Sevilla) – The second most populous municipality in the province of Seville, properties cost an average of €163.274 here. The Andalusian town is just 15km south of Seville, making it great for commuters or those who want plenty of culture nearby. 

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