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Rental Costs Reach Historical High in January

Renting a home increased 5.1% in January

Renting a home increased 5.1% in January

The price of rental housing in Spain increased by 1% in January when compared to December 2023. When compared to the previous January, the increase was 5.1%. This brings the average price per square metre, per month to €11.78. This is the highest average rental cost since 2006.

The price of renting continues to rise significantly throughout the country and in all the autonomous communities. In fact, many of them exceeded historical maximum prices. At the national level, the average price reached a record in January 2024, after having set highs on several occasions in 2022 and 2023. The market suffers from a great imbalance between supply and demand that does not allow the price to adjust. Interferences in the market, both legislative and macroeconomic, impact its volatility, leaving consequences as serious as the reduction in supply, which is below minimum levels in 2024,” explained María Matos, Director of Studies and spokesperson for Fotocasa.

Autonomous Communities

Compared to a year ago, all autonomous communities have seen rental costs rise. Six communities saw double-digit increases. They were Balearic Islands (16.6%), Valencian community (13.3%), Madrid (12.8%), Cantabria (11.7%), Basque Country (11.6%), and the Canary Islands (11.3%).

Other increases included Asturias (9.9%), La Rioja (9.7%), Castilla y León (8.5%), Navarra (8.5%), Andalusia (7.7%), Aragon (7.4%), Galicia (6.6%), Catalonia (6.3%), Region of Murcia (6.0%), Castilla-La Mancha (5.1%) and Extremadura (2.8%).

Five communities already exceed the historical maximum rental prices per square meter per month. The areas of Spain with the highest monthly prices in the entire historical series are: Madrid (€17.63 p/m²), Catalonia (€16.14 p/m²), Valencian Community (€11.67 p/m²), Navarra (€11.37 p/m²) and Asturias (€9.51 p/m²).

Regarding the ranking of Autonomous Communities with the most expensive housing to rent  in Spain, in the first places are Madrid and the Balearic Islands, with prices of €17.63 p/m² per month and €16.86 p/m² per month, respectively. They are followed by seven more communities with prices higher than €10.00 p/m² per month and they are: Catalonia with €16.14 p/m² per month, the Basque Country with €15.32 p/m² per month, the Canary Islands with 12.81 € p/m² per month, Valencian Community with €11.67 p/m² per month, Cantabria with €11.64 p/m² per month, Navarra with €11.37 p/m² per month and Andalusia with €10.10 p/m² per month.

Provinces of Spain

In 48 of the provinces, the year-on-year price of rental housing increased in January 2024, except for Lugo and Albacete. Increases of more than 10% occur in 19 provinces.

The order of the provinces with annual increases greater than 10% are: Huesca (30.0%), Santa Cruz de Tenerife (19.8%), Segovia (17.9%), Toledo (17.9%), Balearic Islands (16.6%), Huelva (16.0%), Teruel (15.7%), Alicante (15.0%), Valencia (14.8%), Gipuzkoa (14.5%), Palencia (14.4%), Madrid (12.8%), Girona (12.5%), León (12.2%), Cantabria (11.7%), Cáceres (11.5%), Castellón (11 .1%), Bizkaia (10.4%) and Barcelona (10.0%).

17 provinces exceed 10.00 euros per square meter per month. The three most expensive provinces are Barcelona with €18.07 p/m² per month, followed by Gipuzkoa with €17.82 p/m² per month and Madrid with €17.63 p/m² per month.