Madrid and Barcelona represent Spain’s most expensive rental housing markets. However, the sharp price increases seen in recent years now appear to be losing momentum.
The rental market has recorded more than three and a half years of continuous increases. Over the past twelve months, rents have risen by 7.4% year-on-year, reaching an average of €14.10 per square metre per month in November. Nevertheless, this is the most moderate increase recorded this year and, for the first time in seven months, growth has not reached double-digit levels. This change in pace suggests a potential turning point. A similar trend is now emerging in Madrid and Barcelona, the most expensive rental markets in Spain.
Madrid: Early Signs of a Slowdown
In the capital, rental prices are beginning to show early signs of deceleration. In November, Madrid recorded its lowest year-on-year increase in 46 months, at just 0.5%. Although price growth had already fallen below 10% during the second half of 2025, the November figure marks a significant milestone. It suggests that, after three consecutive years of record highs, one of Spain’s most strained rental markets may have reached its peak, though this does not yet imply a widespread correction.
At present, average rents in Madrid stand at €21.95 per square metre per month, meaning that a typical 80-square-metre apartment costs around €1,756 per month.
Barcelona: Earlier Moderation, Still the Most Expensive
In Barcelona, rental prices increased by 2.9% year-on-year in November. The shift toward slower growth occurred earlier in the Catalan capital, which left behind double-digit increases in September 2023 and has since maintained more moderate gains. Even so, Barcelona remains Spain’s most expensive city for renting, with an average price of €23.48 per square metre. As a result, renting an 80-square-metre property now costs over €1,878 per month.
That said, without a significant increase in housing supply, widespread rent declines are unlikely. Instead, stability is expected in some segments, while pressure will persist in others.
District-Level Trends
Madrid
In November, rents increased year-on-year in 15 of the 21 districts analysed, although in all cases growth remained below 10%. The largest increases were recorded in San Blas (9.9%), followed by Moratalaz (9.4%), Hortaleza (7.1%), Carabanchel (4.6%), and Vicálvaro (3.3%). The strongest growth has therefore been concentrated in more peripheral districts.
More moderate increases—below 2%—were observed in Ciudad Lineal (1.9%), Moncloa-Aravaca (1.9%), Latina (1.7%), Salamanca (1.7%), Chamartín (1.4%), Villaverde (1.3%), Puente de Vallecas (1.2%), Usera (0.3%), Tetuán (0.3%), and Centro (0.2%), covering both inner-city and outer areas.
This trend reflects a waning of solvent demand, particularly among younger tenants and middle-income households, for whom renting has become unaffordable in many neighbourhoods.
In terms of price per square metre, Madrid has now moved away from its historic highs, standing at €21.85 per square metre per month. In fact, rents fell by 1.9% month-on-month in the most recent period.
These price levels are forcing many tenants to relocate to municipalities in the metropolitan area,e such as Alcorcón, Leganés, and Getafe, as well as to more distant cities, including Toledo and Segovia.
Barcelona
In Barcelona, rents have increased in all but two districts over the past year. However, the pace of growth has been significantly slower than in Madrid. This is largely due to the implementation of rent caps under Spain’s Housing Law, which apply in Barcelona but not in Madrid.
The districts with the largest increases were Les Corts (6.1%), Gràcia (5.9%), Eixample (4.9%), Sant Andreu (3.9%), Ciutat Vella (3.2%), Sant Martí (1.6%), and Nou Barris (0.8%).
Barcelona continues to have the highest average rental prices in Spain, with all districts exceeding €20 per square metre. The most expensive district is Gràcia (€24.46/m²), followed by Ciutat Vella (€23.93/m²), Eixample (€23.88/m²), Sant Martí (€23.79/m²), Les Corts (€22.72/m²), Sants-Montjuïc (€22.65/m²), Sarrià-Sant Gervasi (€22.34/m²), Sant Andreu (€22.04/m²), Horta-Guinardó (€20.98/m²), and Nou Barris (€20.68/m²).
Barcelona is a highly homogeneous market, with a price gap of less than €4 per square metre between the most and least expensive districts. In contrast, Madrid displays a much wider range, from €24.10/m² in Centro to €16.67/m² in Villa de Vallecas, a difference of €7.43.
This divergence is largely explained by geography. Barcelona, constrained between the sea and the mountains, covers around 100 square kilometres, with districts located relatively close to one another. Madrid, by contrast, spans approximately 600 square kilometres, resulting in greater distances between central and peripheral districts and a more diverse housing supply.
One trend that Barcelona does share with Madrid is the outward migration of tenants. A growing number of residents are leaving the city centre for the surrounding areas. Inland municipalities such as Sabadell and Martorell, as well as coastal towns including Mataró, Vilanova, and Cunit, are experiencing a strong increase in rental demand.
Conclusion
The rental markets in Madrid and Barcelona appear to be entering a new phase after several years of sustained growth. While prices remain at historically high levels, the slowdown in annual increases, along with outright declines in some districts, suggests that affordability constraints and demand fatigue are beginning to take effect. In Madrid, this is reflected in the cooling of price growth and the outward movement of tenants toward peripheral and metropolitan areas. In Barcelona, rent controls have contributed to a more contained evolution, resulting in a more homogeneous but still extremely expensive market.
However, these early signs of stabilisation should not be interpreted as a broad-based correction. Without a meaningful expansion of housing supply, structural pressure on rents is likely to persist, particularly in well-connected or high-demand areas. As a result, the coming months are expected to bring a mixed scenario: selective price adjustments in certain districts alongside continued tension in others, reinforcing the need for long-term solutions to address Spain’s rental housing imbalance.
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