Rental prices rose 14.9% Year-on-Year
The Spanish rental market is showing no signs of slowing down. According to the latest data, rental prices across Spain increased by 14.9% year-on-year in May 2025, representing the second-highest annual rise in the past five years.
The average rental price now stands at €14.33 per square metre, meaning that an 80 m² apartment typically costs around €1,146 per month. This marks an increase of approximately €148 per month compared to May 2024.
Rental Pressure Mounts for Tenants
This steep price rise is putting increasing pressure on tenants, especially younger renters and those relocating to high-demand areas such as Marbella and the Costa del Sol. Limited rental supply and strong demand continue to drive prices up.
According to María Matos, Director of Research at Fotocasa, “We are witnessing a significant and ongoing imbalance between supply and demand. Many landlords are shifting their properties to the sales market or to other rental models, reducing the availability of long-term rentals. Without public policies to support rental supply, this situation risks becoming permanent.”
How Andalusia and the Costa del Sol Are Affected
Andalusia experienced a 10.3% increase in rental property prices over the past year, placing it among the top regions in terms of growth. Within Andalusia, Málaga province remains one of the most expensive rental markets in Spain, with average prices reaching €15.87/m² per month. For context, this places Málaga above other popular coastal areas such as Valencia and the Canary Islands.
This means that for an average 80 m² apartment in Málaga city or its sought-after coastal areas like Marbella, tenants can expect to pay over €1,270 per month. In luxury and beachfront locations, prices can be significantly higher.
Spain’s Most Expensive Rental Markets
As of May 2025, the top five regions with the highest average rental prices per square metre are:
- Madrid: €21.17/m²
- Catalonia: €20.04/m²
- Balearic Islands: €18.24/m²
- Basque Country: €16.78/m²
- Canary Islands: €15.07/m²
Málaga, ranked closely behind, continues to be a prime location for investors seeking strong rental yields, thanks to its popularity with international tenants, digital nomads, and second-home seekers.
Outlook for Property Owners and Investors
For property owners on the Costa del Sol, this trend presents an opportunity. Demand for rental properties remains high, and the region continues to attract both long-term tenants and seasonal visitors. Investors looking for attractive yields will find that well-located apartments and villas in Marbella, Estepona, or Mijas are increasingly competitive assets in the rental market.
However, it’s important to balance yield expectations with the reality of evolving regulations, tenant protections, and the potential need for long-term rental licenses, especially in tourist-heavy areas.
The sharp rise in rental prices across Spain—and in Málaga in particular—highlights both the challenges for tenants and the opportunities for landlords and investors. On the Costa del Sol, the demand for quality rental properties is unlikely to subside anytime soon, making it essential for all market participants to stay informed and act strategically.
If you’re considering investing in a rental property or looking for the right opportunity in Marbella or the surrounding areas, now is the time to review the market closely. At Marbella For Sale, our experienced team is here to guide you with up-to-date market insights and tailored advice.
