According to property portal Idealista, the average rental price in Spain has risen by close to nine percent in the last year (from February 2022 to February 2023), which is the highest amount in its historical record.
Rental prices have skyrocketed the most in the Andalusian city of Málaga, where they have increased by 23 percent. The average rental price in Málaga in February 2023 was €12.2/m2, which is a new record, according to Idealista's historic data. The increase was seen most in the city’s Centro district, where it reached 29.1 percent year-on-year. The average rental price there was €13.8/m2, the most expensive in the city.
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Málaga was followed by the Catalan capital of Barcelona, with rental price surges of 20 percent. Barcelona continues to be the most expensive city in Spain to rent a property. The rental price of homes in Barcelona in February stood at €19.4/m2.
Valencia city comes in third place where rental prices grew by 19 percent. Rental prices in Valencia also reached a new record in February 2023, where they were €11.5/m2. Some of its districts have even recorded the highest price increases of the cities analysed. These were L'Eixample (increases of 29.4 percent), Ciutat Vella (29 percent) and Camins al Grau (24.2 percent), although only Ciutat Vella reached its maximum in February at €15.2/m2.
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This is followed Mallorcan capital of Palma where rents have risen by 18 percent. Here, they were €13.6 €/m2 in February 2023. Surprisingly, the Spanish capital Madrid only comes in fifth place, where rents have increased by 11 percent. While Madrid is still one of the most expensive cities in Spain to rent, the average price of leases in the city stood at €16.6/m2 in February almost one percent below its maximum price reached in the midst of the pandemic in May 2020.
Independent valuation company Gesvalt also revealed that rents have increased significantly in the province of Málaga and the Costa del Sol. According to the latest data available, the price per square metre per month in Marbella reached €17.28, 27 percent more than a year ago. Estepona also registered rents at €12.89 per square metre, 23 percent more than the previous year. There was also a 20 percent increase in Benalmádena and Mijas.
While rents have been rising, the availability of rental properties has been decreasing further over the past year. The number of apartments for rent has been significantly reduced because many owners have taken the advantage to sell their homes or simply prefer to withdraw them from the market.
Overall, availability across Spain fell by 17 percent in 2022. The cities most affected were Madrid, where the number of available apartments for rent fell by a total of 32 percent and Barcelona, where they fell by 28 percent.
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The general director of Rent Negotiating Agency, José Ramón Zurdo, explained that "some owners, to compensate for the limitation that is being imposed on rent increases, have decided to raise the prices of rents so as not to lose purchasing power, because the current inflation situation is also affecting them". In addition, he confirms that "many landlords are deciding, at the end of their contracts, not to rent their homes anymore, or to sell them".
The latest data from Spain's National Institute of Statistics (INE) shows that some three million families rent in Spain, however, other sources such as the consultant Savills have shown the figure to be much higher than this at 4.5 million. It is estimated that five percent of these rent from institutions.
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