In 2025, the rental housing market in Spain experienced a significant increase in prices. In cities such as Barcelona, Madrid, Valencia, Malaga, and Bilbao, the average cost of long-term rentals rose by more than 10% compared to the previous year. Experts attribute this not only to high demand but also to a decrease in the supply of traditional housing for permanent residency.
More and more property owners are choosing to rent out their apartments on a short-term basis. This approach allows them to bypass restrictions set by current legislation and earn higher profits. As a result, there are fewer options available for those seeking long-term accommodation.
Owners who opt for short-term rentals are most often private individuals who own a single apartment. They aim to maximize the return on their investment by renting to company executives, digital nomads, and foreign students. These tenants typically have incomes above 2,500 euros per month and rent for a period of six to nine months. As a result, the average rent under short-term contracts exceeds 1,200 euros per month, which is noticeably higher than in the long-term rental segment.
Meanwhile, the situation is becoming increasingly difficult for regular renters. In Barcelona, the average cost of new rental contracts has already reached €1,300 per month, and in Madrid—€1,250. At the same time, in many regions of the country, the average salary does not exceed €1,600, making housing rental unaffordable for a significant portion of the population.
Market participants note that short-term rentals are increasingly used as a way to bypass price controls imposed on long-term contracts. This exacerbates the imbalance between supply and demand and creates additional challenges for families seeking permanent housing.
Experts emphasize the need to introduce clear regulations for the short-term rental market. In their opinion, this is the only way to curb abuses and restore balance in the housing market, making decent housing more accessible to citizens.
