The price of rental housing in Spain increased by 1.2% in April, when compared to the previous month. When compared to the same month in 2022, the increase was 7.3%. The average cost per square meter, per month, now stands at €11.69.
“Although increases are no longer in double digits, the price of rental housing once again sets a price record in the month of April, for the fourth consecutive time in 2023. This increase in the price is caused by the great imbalance between supply and demand and that tension once again pushes prices up. The main problem – and one that has increased in the last year and a half – is the reduction in the supply of residential rentals. A very significant volume of properties have been sold, have been converted to tourist rentals or remain empty. Owners concerned about the legal insecurity in the Housing Law have been keen to migrate to other markets“, explained María Matos, director of Studies at Fotocasa.
If we look at rental prices compared to those of a year ago, we see that 16 communities saw year-on-year price increases in April. In six communities double-digit increases were exceeded, specifically in the Balearic Islands (32.5%), the Canary Islands (22.5%), the Valencian Community (16.5%), Cantabria (14.8%), Madrid (12.8 %) and Navarre (11.2%). They are followed by Andalusia (9.3%), Catalonia (7.1%), Castilla y León (5.9%), Galicia (5.5%), Extremadura (5.1%), Asturias (3.6%), the Basque Country (3.5%), La Rioja (2.7%), the Region of Murcia (2.0%) and Aragon (1.7%). On the other hand, the only community that registered a fall in rental costs compared to the previous year is Castilla-La Mancha with -5.5%.
In April 2023, eight communities exceed the previous maximum price for rental property in Spain per square meter per month. The areas of Spain with the highest prices in the entire historical series are: Madrid (€16.41 p/m² per month), the Balearic Islands (€16.23 p/m² per month), the Canary Islands (€12.27 p/m² per month), Cantabria (€11.35 p/m² per month), Valencian Community (€11.02 p/m² per month), Navarra (€10.99 p/m² per month), Andalusia (€9.64 p/m² per month) and Galicia (€8.19 p/m² per month).
The most expensive rental prices in Spain are Madrid and the Balearic Islands, with prices of €16.41 p/m² per month and €16.23 p/m² per month, respectively. They are followed by six more communities with prices above €10.00 p/m² per month and they are: Catalonia (€15.63 p/m² per month), the Basque Country (€14.00 p/m² per month), the Canary Islands (12 €.27 p/m² per month), Cantabria (€11.35 p/m² per month), Valencian Community (€11.02 p/m² per month) and Navarra (€10.99 p/m² per month).
Provinces of Spain
Almost all the provinces saw an increase in the year-on-year price of rental housing in April 2023, except for Huelva, Lugo and Pontevedra. Increases of more than 10% occur in 16 provinces.
The order of the provinces with year-on-year increases of more than 10% are: Balearic Islands (32.5%), Santa Cruz de Tenerife (26.4%), Alicante (24.6%), Málaga (22.8%), Las Palmas (20.3%), Valencia (17.5%), Cantabria (14.8%), Madrid (12.8%), Tarragona (11.3%), Navarra (11.2%), Almería (10.9%) and Girona (10.2%).
Regarding prices, 16 provinces exceed 10.00 euros per square meter per month. The three most expensive provinces are Barcelona with €16.88 p/m² per month, followed by Madrid with €16.41 p/m² per month and Balearic Islands with €15.23 p/m² per month.
Rental price increases were seen in 37 of the 40 provincial capitals. 15 capitals saw double-digit interannual increases, while in only nine capitals the interannual increases are less than 5%. Regarding the price per square meter in April, we see that 15 cities exceed €10.00 p/m² per month and only Ciudad Real has a price of €5.00 p/m² per month, specifically it is €5.58 p/m² per month.