The rental rates of residential premises continue to rise in most parts of Spain.
According to Idealista, the real estate portal, the average rent level around the country increased by 1.3% for a month and by 2.3% quarter by quarter. It reached approximately 10.9 euros per sq.m./month. Also, in April 2022, 18 provincial capitals recorded the highest rental prices on record in southern Europe.
The districts that set a new record are the following (rough calculation in euros per sq. m/month): Vitoria — 10.5 euros; Cadiz and Girona — 10 euros each; Valencia and Santander — 9.9 euros and 9 euros; Segovia, Tarragona, Salamanca, and Alicante — 8.9, 8.7, 8.4, and 8 euros; Huesca, Guadalajara, Logrono, and Pontevedra — 7.8, 7.6, 7.4 and 7.3 euros; Cuenca and Castellón de la Plana — 6.9 euros each; Jaen and Avila — 6.2 euros each; Zamora — 6 euros.
Another six capital cities did not break the historical records set during the last half of the year. But they were quite close enough.
This is about such cities as Zaragoza, Murcia, A Coruña, Cáceres, Burgos, and Badajoz. They lacked about 1% to break the record. So, in Zaragoza, the capital of the autonomous community of Aragon, the average rental rate is only 0.02% lower than the outstanding March figure.
But in the rest of the country, rental payments are still much lower, and they have vast room to grow. In the cities of Oviedo, Almeria, Lleida, Cordoba, Huelva, Malaga, Santa Cruz de Tenerife, Leon, and Pamplona the rental charge per square meter of residential space/month is 1–2% lower than the maximum rate.
In another 11 provincial capitals, rental rates are already 2-5% below record levels. These are Lugo, Albacete, Soria, Toledo, Teruel, Granada, Las Palmas de Gran Canaria, Bilbao, Palencia, Valladolid, and Ciudad Real.
Currently, there are cities with rents that are at least 5% below their historical highs. This list includes some of the largest cities in Spain.
For example, in Palma, the current average rental rate is 11.7 euros per sq.m./month. For comparison, in May 2020, the worst period of the pandemic, rental payments were about 12.5 euros per sq.m. The same situation is in San Sebastian. There, the rent is 14.9 euros per sqm/month, which is 5.8% lower than the highs of November 2021 (approx. 15.9 euros).
Barcelona is another major city where current rental rates are the furthest from record highs. In May 2020, rental rates were 17.8 euros. Today, rental fees in the city are 16.5 euros per sq.m/month.
In Seville, the current rent is 7% cheaper than in May 2020. Today the average fee is 10 euros per sq.m/month. In Ourense, it dropped by 8% compared to October 2020. In the past, the rent was about 6.4 euros per sq.m/month compared to today’s 5.8 euros.
Madrid is the furthest away from previous records. 15.2 euros per sq.m. should be paid today compared to 16.8 euros in May 2020. So, the difference reaches 9.4%.
According to Idealista, in April 2022, Barcelona was the capital city with the most expensive rentals in the country in absolute terms. It is 16.5 euros per sq.m/month.
There follow Madrid (15.2 euros), San Sebastian (14.9 euros), Bilbao (12.8 euros), and Palma (11.8 euros). On the other hand, Ourense has become the most affordable city in Spain (5.8 euros per sq. m/month), followed by Zamora, Ciudad Real, and Cáceres (6 euros each).