The cost of rentals in Spain are continuing their upward trend, setting new records.
By the end of 2023, prices had surged by an average of 10.1%, reaching 12.1€/m2.
This climb persisted into the first quarter of this year, with a further 4.7% increase by March’s end, bringing the cost to 12.7€/m2. Barcelona leads as the priciest capital for renters at an average of 20.7€/m2, followed closely by Madrid at 18.9€/m2. Other expensive capitals include Palma at 15.6€/m2, and Málaga and Bilbao, both at 13.8€/m2.
These statistics underscore the unprecedented surge in rental prices in Spain, indicating a market that is reaching concerning levels of inflation. The primary driver behind this surge is the stark mismatch between supply and demand. Despite efforts such as the proposed rent price cap index by the Ministry of Housing, the market hasn’t shown signs of stabilization, and measures aimed at controlling prices are further stifling supply.
This unsustainable increase disproportionately affects low-income families, particularly in major cities where prices consistently soar to new highs. The surge in rental costs isn’t limited to capitals; it’s pervasive across provinces as well. Between January and March 2024, rental prices increased in 45 provinces and 43 capitals. Madrid province saw a 5.5% rise, while Barcelona experienced a 2.1% increase.
This trend isn’t confined to specific regions; it’s widespread across all autonomous communities, indicating a nationwide challenge in housing affordability.
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