Else Beekman
The Spanish rental market is under growing pressure. In February 2025, rental prices increased by 10.4% compared to the previous year, bringing the average rental price to €13.54 per square metre per month.
All autonomous regions saw an increase in rental prices in February. Aragón led with a rise of 15.3%, followed by Madrid (14.6%), Asturias (13.8%), and Murcia (13.6%). The highest rental prices were recorded in Madrid (€20.96/m²), Catalonia (€18.50/m²), the Balearic Islands (€18.34/m²), and the Basque Country (€16.62/m²). On the other hand, the most affordable regions were Extremadura (€6.97/m²), Castilla-La Mancha (€7.62/m²), and Castilla y León (€9.21/m²).
Increases by province
In 22 of the 47 analysed provinces, rental prices rose by more than 10%. Huesca topped the list with an increase of 19.8%, followed by Lugo (18.8%), Palencia (15.1%), Cuenca (14.7%), and Madrid (14.6%). The most expensive provinces for renting were Madrid (€20.96/m²), Barcelona (€20.58/m²), Gipuzkoa (€18.47/m²), the Balearic Islands (€18.34/m²), and Bizkaia (€16.28/m²). The lowest prices were found in Jaén (€6.11/m²), Ciudad Real (€6.52/m²), and Badajoz (€6.85/m²).
City centres under pressure
In 42 of the 43 analysed provincial capitals, rental prices increased, with 14 cities recording double-digit growth. Toledo led with a rise of 27.2%, followed by Lugo (18.6%), Castellón de la Plana (16.9%), Pamplona (14.9%), and Zaragoza (14.3%). Barcelona remains the most expensive city, with an average rental price of €23.00/m², followed by Madrid (€22.03/m²), San Sebastián (€20.70/m²), Palma de Mallorca (€18.31/m²), and Bilbao (€16.71/m²). Jaén remains the most affordable capital at €6.92/m².
Focus on Malaga
Malaga has seen a remarkable surge in rental prices. In February 2025, the average rental price reached a new record of €15.6 per square metre, an increase of 10.6% compared to the previous year. This rise makes Málaga the fifth most expensive city to rent in Spain.
Evictions due to non-payment on the rise
Alongside rising rental prices, the number of evictions due to non-payment is also increasing. According to a report by the Spanish General Council of the Judiciary (CGPJ), evictions due to rental arrears rose by 4.5% in 2024, while those caused by mortgage defaults dropped by 3.6%. In total, 27,564 evictions were carried out, with nearly 75% related to rental arrears. Catalonia (5,539 cases), Andalucia (2,712), and the Valencian Community (2,517) recorded the highest numbers of evictions, while Navarra, La Rioja, and Extremadura had the lowest figures.
Causes and consequences
According to María Matos, Director of Research and spokesperson for Fotocasa, rental prices continue to rise at a pace similar to the 2007 property boom, although for different reasons. Currently, high demand and limited supply are putting pressure on prices across the country. In many regions, rental prices have surpassed historical highs, with the national average now exceeding €1,000 per month. In cities with high population attraction, tourist areas, and archipelagos, prices are approaching €1,500 per month, making access to housing increasingly difficult.
Spanish rental policy has ‘destroyed’ the market
Economist Gonzalo Bernardos recently warned in the podcast Think Small that Spain’s rental policies have ‘destroyed’ the market. According to him, major political parties have failed to implement an effective housing policy over the past fifteen years. He criticises rent controls as ineffective, arguing that they restrict access to rental housing and create a black market. In Catalonia, Bernardos claims, tenants are offering thousands of euros extra to secure a property, exacerbating inequality in the housing market. As a result, buying has increasingly become the only option, leaving many young people reliant on financial support from their families to purchase a home.