As 2024 comes to a close, Spain’s rental market is experiencing one of its most critical moments. The availability of long-term rental properties has dropped by 3% year-on-year in the fourth quarter, while seasonal rentals have surged by 24%, now accounting for 14% of the total rental supply in the country. This trend highlights a continuous three-and-a-half-year decline in permanent rental availability, which remains just 5% above the historic low recorded in June 2024.
Declining Long-Term Rental Availability
12 provincial capitals have reached record lows in traditional rental availability since records began, including Madrid, San Sebastián, Seville, Bilbao, Burgos, Oviedo, Zaragoza, Albacete, Vitoria, Pamplona, Ciudad Real, and Guadalajara. Conversely, some cities have seen significant growth in rental property supply. Cuenca leads the way with a 46% increase over the past year, followed by Cáceres (39%), Soria (23%), Málaga (23%), and Segovia (18%). However, several cities have experienced sharp declines, with Teruel seeing a 35% drop, followed by Tarragona (-34%), Ourense (-31%), Ceuta (-27%), Barcelona (-26%), and Guadalajara (-26%).
Seasonal Rentals on the Rise
Seasonal rentals continue to gain prominence in the housing market. In Barcelona, they now represent 43% of all available rental properties. Other cities showing high proportions of seasonal rentals include San Sebastián (36%), Girona (26%), Badajoz (24%), Tarragona (20%), and Cádiz (19%). Even major cities such as Madrid (15%), Palma (14%), Bilbao (14%), Santander (13%), and Valencia (13%) are seeing a notable shift toward short-term rentals.
Record-High Rental Prices
Spain’s rental prices have reached an all-time high of €13.5 per square meter per month, marking an 11.5% year-on-year increase. This upward trend underscores the structural crisis in the sector, driven by insufficient supply and steadily growing demand.
The price surge is no longer confined to major cities, with historically affordable areas also witnessing sharp increases. In 2024, 31 out of Spain’s 51 provincial capitals hit record-high rental prices, with Ávila (18.6%), Madrid (15.3%), and Guadalajara (14.4%) seeing the steepest rises.
Despite this, the most expensive cities remain Barcelona (€23.4/m²), Madrid (€20.7/m²), and San Sebastián (€18/m²).
Regional Disparities in Rental Costs
At the provincial level, the highest price increases were recorded in Cáceres (22.1%), Segovia (21.1%), and Ávila (17.2%). Meanwhile, Barcelona (€19.9/m²) and Madrid (€18.8/m²) remain the priciest provinces.
Regional disparities are stark, with Madrid (16.4%), Catalonia (12.4%), and the Valencian Community (12.1%) seeing the highest increases. These regions also have the highest average rental prices, with Madrid leading at €18.8/m², followed by Catalonia (€18/m²) and the Balearic Islands (€17.6/m²).
Meanwhile, Extremadura (€6.9/m²), Castilla-La Mancha (€7.4/m²), and La Rioja (€8.2/m²) continue to be the most affordable regions, though even these areas have seen price hikes of nearly 10%.
Challenges and Policy Impact
The ongoing rental crisis has made access to housing increasingly difficult for families across Spain. Many are being forced to relocate to more affordable regions or abandon renting altogether. Government policies aimed at regulating the market have so far failed to balance supply and demand. Experts suggest that these measures have discouraged property owners from renting out their homes, exacerbating the shortage and driving prices even higher.
Looking ahead to 2025, rental prices are expected to rise by nearly 9%, further straining affordability and increasing the financial burden on renters across the country.
