Palma is the third high-priced city in Spain when renting a room

According to Spotahome, Palma, a key city of the Balearic Islands, is the third most expensive city for renting housing in Spain. Monthly rent of a room in this city will cost the tenant 516 euros. Only Madrid and Barcelona are ahead of it.

The growth of the Consumer Price Index (CPI), the market supply shortage with extremely high demand, the rise in mortgage interest rates and other factors led to an increase in rental rates last year. Spotahome notes that rental demand has increased by 40% in recent months.

The company points out that a tenant will have to pay an average of 603, 558 or 516 euros per month for a room in Barcelona, Madrid or Palma, the three rating leaders. These are the most expensive destinations. The cheapest are Santiago de Compostela, La Coruna and Huelva, where the average monthly rental rate is 214, 255 and 278 euros, respectively.

Alvaro Martin, market manager at Spotahome, explains that the shortage of housing and the constant rise in real estate prices due to inflation have forced many people to rent housing as an alternative to finding a place to live. However, the emphasis is shifting from renting apartments to rooms.