In 2024, 16 autonomous communities in Spain have surpassed their historic maximum rental prices, exceeding the peaks reached during the 2007 real estate bubble. Only Aragón and Castilla-La Mancha have not reached new highs. Nationally, the average rent exceeded its previous maximum in June 2024, reaching €12.65 per m²/month, marking a 9% year-on-year increase.
“The rental market continues to hit historic highs and set price records in most regions and virtually all provincial capitals. The rental sector is experiencing a severe price crisis, with some communities seeing increases of 30%, 40%, and even 60% above the 2007 bubble prices, with the upward trend persisting. This increase is driven by an imbalance between growing demand and sharply contracting supply, leading to ever-diminishing rental stock availability. This mismatch is driving prices up significantly. We’ve never seen such a rapid rate of price increase as in the last two years,” comments María Matos, Director of Studies.
In the first half of 2024, communities such as Andalusia, Asturias, the Balearic Islands, the Canary Islands, Cantabria, Castile and León, Catalonia, the Valencian Community, Extremadura, Galicia, Madrid, Navarra, the Basque Country, and the Region of Murcia have all reached maximum rental prices. La Rioja hit its peak in August 2023. The two communities that have not yet reached maximum prices are expected to do so in the coming months, possibly before the end of the year.
Most Expensive Cities to Rent: Barcelona, Madrid, and San Sebastián
Barcelona is the most expensive city in Spain for renting a home where an 80-m² apartment costs an average of €1,775 per month, followed by Madrid at €1,682 per month. Barcelona and Madrid are the only cities where the rent exceeds €20 per m², with Barcelona at €22.19/m² and Madrid at €21.03/m². San Sebastián ranks third, with an average rent of €1,559 per month, equating to €19.49/m².
What about Room Rental Prices in 2024?
In 2024, the room rental market in Spain is concentrated in three cities: Madrid, Barcelona, and Valencia, which account for more than 60% of the total supply. These cities show diverse price trends impacting both tenants and landlords.
Barcelona: The City with the Highest Room Rents
Barcelona leads in room rental prices, with an average cost of €550 per month per room. Ciutat Vella is the most expensive district at €625, followed closely by Sarrià-Sant Gervasi at €605, and Eixample at €590. Annual growth in these districts varies significantly, with increases starting from 4.2%. Other high-priced districts include Les Corts (€550), Gràcia (€530), Sants-Montjuïc (€500), and Sant Martí (€497). More affordable options can be found in districts like Horta Guinardó (€490) and Sant Andreu (€470).
Madrid: Diversity and High Increases
Madrid offers a wide range of room rental options, averaging €525 per month. The most expensive districts are Chamberí (€612) and Chamartín (€595), with Centro also high at €599 per month due to its central and vibrant location. Prices and growth rates vary significantly across the city. For instance, Retiro (€575), Moncloa (€565), and Tetuán (€560) are on the higher end, while Arganzuela (€490) and Barajas (€450) are more affordable. Economic districts such as Carabanchel, Vicálvaro, and Puente de Vallecas average around €400 per month, providing cheaper alternatives for tenants.
Valencia: Affordability with Variable Growth
Valencia is the most affordable city among the three, with an average room rental price of €400 per month. However, some districts like L’Eixample have seen significant growth, with prices rising by 18.8% to reach €475 per month. Ciutat Vella follows closely at €470, indicating increasing demand in certain areas. More affordable districts include Rascanya (€340), Benimaclet (€360), and Algirós (€365). Patraix is the only district where prices have decreased, with a 1.3% drop. This variety in pricing and growth trends makes Valencia a city with options for all budgets.
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