Rental prices in Spain are cooling, but they aren’t falling. According to Fotocasa, average rents rose 3% year on year in the third quarter of 2026 to €14.10 per m² per month, well down from 9.1% growth in the first quarter. That puts the average 80 m² flat at about €1,128 a month.
The national figure hides a very uneven map, though. Some cities are still seeing double-digit increases. Madrid and Barcelona have flattened, and a few capitals are getting cheaper. Meanwhile, the government’s new housing decrees, a shrinking supply of rental homes and rising mortgage rates could change the picture over the coming months. If you rent in Spain or are planning a move, here’s where prices stand city by city and what to watch next.
Spain’s rental market at a glance (Q3 2026)
- Average rent: €14.10/m² per month, or about €1,128 for 80 m²
- Annual change: +3% (Q2: +2.9%, Q1: +9.1%)
- Recent peak: €14.79/m² in June 2026
- Most expensive capital: Barcelona, at €23.15/m²
- Cheapest capital: Jaén, at €7.60/m²
- Fastest-rising capital: Palencia, at +21.4%
Why rent growth is slowing, and why the respite may be short
After several years of exceptionally steep increases, rents began to decelerate in 2026. Fotocasa warns that this pause could be short-lived if the number of homes available to rent keeps falling. Its head of research, María Matos, describes “a blocked market that, far from recovering supply, keeps shrinking” while demand stays very high. Many households, she adds, have simply reached the limit of what they can pay.
Two forces could push prices back up:
- Less supply. The Spanish Federation of Real Estate Agencies (FAI) estimates that 4,235 homes left the rental market in just 10 days after the decrees were approved, and that 1,523 contract signings stalled because of legal uncertainty.
- More demand from would-be buyers. The 12-month Euribor has averaged 3.216% so far in October, up from 2.187% a year ago. The European Central Bank has raised rates twice this year, most recently on 10 September, taking them to 2.5%, and markets expect at least three more hikes. When buying gets harder, more households keep renting for longer.
When supply falls and demand rises at the same time, prices tend to come under pressure again.
Spain’s new housing decrees: what’s changing
The government’s housing decrees focus mainly on the rental market. Among other measures, they limit how much landlords can raise the rent and extend existing contracts. It’s too early to see their effect in the price data, because the Q3 figures reflect the market just before the decrees were approved.
Industry groups are already raising concerns. The biggest problem is legal uncertainty: if renting out a home becomes more complex, costly and unpredictable, some owners may stop doing it. FAI president José María Alfaro argues that small landlords, who make up a large share of supply, still lack clear protection against unpaid rent.
Where rents are rising fastest
Seven provincial capitals recorded annual increases above 10% in Q3 2026:
| City | Annual change (Q3 2026) |
|---|---|
| Palencia | +21.4% |
| Tarragona | +21.2% |
| Valencia | +16.4% |
| Huelva | +12.9% |
| Segovia | +12.2% |
| Santander | +12.1% |
| Zaragoza | +10.8% |
Palencia is a small market, so it reacts sharply to change. This academic year, new Biotechnology and Nursing degrees at the University of Valladolid’s Palencia campus brought a wave of student demand. In the other cities on the list, the gap between supply and demand remains wide.
Madrid and Barcelona rent prices: have they peaked?
Spain’s two largest markets have stalled. Rents in Madrid rose just 0.1% year on year, while in Barcelona they fell 0.7%. Both cities have sat at record highs for years and are the most expensive capitals in the country, so prices may have hit their ceiling.
The parallel trend is notable because Barcelona applied the rent caps allowed under Spain’s Housing Law and Madrid didn’t. Besides Barcelona, rents fell in Soria (−5.8%) and Zamora (−1.7%). They rose only modestly in Ourense (+0.1%), Burgos (+1.5%), Seville (+2.4%), Almería (+3.1%), Lugo (+3.2%) and Huesca (+3.3%).
Most expensive cities to rent in Spain
| City | Rent (€/m²/month) | 80 m² flat (€/month) |
|---|---|---|
| Barcelona | 23.15 | 1,852 |
| Madrid | 22.40 | 1,792 |
| San Sebastián | 20.54 | 1,643 |
| Palma de Mallorca | 19.60 | 1,568 |
| Valencia | 18.90 | 1,512 |
| Bilbao | 17.60 | 1,408 |
| Girona | 16.80 | 1,344 |
| Málaga | 16.60 | 1,328 |
| Las Palmas de Gran Canaria | 16.10 | 1,288 |
| Santa Cruz de Tenerife | 15.20 | 1,216 |
Cheapest cities to rent in Spain
Seventeen provincial capitals have rents below €10/m². The cheapest is Jaén, at €7.60/m², or about €608 a month for 80 m². That’s roughly a third of the Barcelona price. Next come Ourense, Lugo, Badajoz and Cáceres, all at €8.30/m² (about €664 a month).
What this means if you rent or are moving to Spain
- Budget for tight markets. In Barcelona, Madrid, San Sebastián, Palma and Valencia, expect €1,500–€1,850 a month for an 80 m² flat, and competition for each listing.
- Move quickly and arrive prepared. With supply shrinking, landlords may ask for more.
- Look beyond the big two. Cities such as Seville, Burgos and Almería combine moderate prices with slow rent growth.
- Check your contract against the new rules. The decrees change how rent increases and contract extensions work, so get advice before you sign or renew.
- Watch Q4 data. The next quarterly figures will be the first to show how the decrees affect prices and supply.
FAQ
- How much is rent in Spain per month in 2026? In Q3 2026 the average rent was €14.10/m² per month, about €1,128 for an 80 m² flat, according to Fotocasa.
- What is the most expensive city to rent in Spain? Barcelona, at €23.15/m² (about €1,852 a month for 80 m²), followed by Madrid (€22.40/m²) and San Sebastián (€20.54/m²).
- What is the cheapest city to rent in Spain? Jaén, at €7.60/m², or about €608 a month for 80 m².
- Are rents going down in Barcelona? Slightly. Barcelona rents fell 0.7% year on year in Q3 2026, while Madrid’s rose just 0.1%.
- Will rents in Spain go up in 2027? Analysts warn prices could tighten again if rental supply keeps shrinking and higher mortgage rates keep would-be buyers renting for longer.
Moving to or Renting in Spain? Get Expert Guidance
Planning a move to Spain? At Eo Mobility Consultancy, we help individuals, families and companies find a home in Spain and navigate the rules that come with it. Contact us for help finding a home and navigating the new rental rules.
Sources: Fotocasa rental price index, Q3 2026; Spanish Federation of Real Estate Agencies (FAI). Monthly costs for an 80 m² flat are calculated from the price per m².
Stay tuned for more information on rental prices in Spain by visiting our blog and social media.
Want to learn more about the different rental contracts in Spain? Head over to our blog entry here.
Looking for updates and trends on the Spanish Rental Market? Search
