Rental Housing Market: New Realities
In 2025, Spain’s rental housing market experienced an unprecedented price surge. In major cities like Madrid and Barcelona, rents for apartments and rooms have reached levels comparable to those in leading European capitals. Analysts report that demand for short-term housing continues to grow while supply fails to keep up, fueling further price increases.
Price Trends in the Capital and on the Coast
In Madrid, the average rent for a room rose by 20% over the past year, reaching €600 per month. In Barcelona, prices climbed by 12.7%, with the average room now renting for €620. Despite this, rents in Valencia, Seville, and Granada remain more affordable, making them attractive to tenants with limited budgets. On the Mediterranean coast, cities such as Alicante, Malaga, and Granada have shown significant increases in apartment rental prices, driven by the region’s popularity among tourists and temporary residents.
Spain’s Most Expensive Neighborhoods
The most expensive neighborhood for rentals is Madrid’s Recoletos district, where the average apartment costs over €3,100 per month. It is followed by prestigious Barcelona neighborhoods such as Sant Gervasi-Galvany and several parts of Eixample. In these locations, rental prices exceed the national average by a quarter, reflecting a high concentration of premium housing and steady demand from both local and foreign tenants.
Spanish cities catch up to Europe
Experts note that certain areas of Madrid and Barcelona now rival the most exclusive neighborhoods of Paris and Rome in terms of rental prices. For example, the El Fort Pienc district in Barcelona saw prices rise by 34% over the past year, while Madrid’s Nueva España and El Viso neighborhoods also posted significant growth. Meanwhile, some parts of the capital are experiencing price corrections, but overall demand remains strong thanks to an influx of students, professionals, and remote workers.
Rental market transformation
Medium-term rentals are becoming an increasingly popular alternative to traditional long-term contracts and short-term tourist lets. This trend is reshaping the urban housing market, making it more flexible but less accessible for permanent residents. As a result, Spain is solidifying its place as one of Europe’s most dynamic rental markets, while the price gap with London and Paris is gradually narrowing.
