January 2025 marks an 11% year-on-year increase in rental prices in Spain’s Valencian Community, reaching €12.95/m², according to Fotocasa data.
In January, the Valencian Community witnessed a remarkable surge in rental prices, setting a new record with an impressive year-on-year increase of 11%, as reported by Fotocasa. The data reveals that the cost of rental housing has escalated by 1.3% in the monthly variation, culminating in an average price of 12.95 euros per square meter for the month. This year-on-year growth marks the third consecutive increase exceeding 10%, positioning the region to commence 2025 with unprecedented rental costs. Notably, the average rental expenditure across Spain has reached an all-time high, surpassing 1,080 euros per dwelling.
Fotocasa’s analysis indicates that the rental market is experiencing a “red hot” phenomenon, with peak prices recorded nationwide since 2022. Alarmingly, all autonomous communities, with the exception of Aragon—merely 2.7% shy of its maximum—have surpassed the price levels observed during the 2007 housing bubble. This scenario is exacerbated by what has been described as “the worst crisis of the 21st century” in terms of long-term rental housing supply, as a significant number of homes have been withdrawn from the market, all while demand remains “very intense and consistent.”
Specifically, the Valencian Community’s year-on-year variation has shifted from 13.3% in January 2024 to the current 11% in January 2025. Over the past 12 months, the price of housing has escalated from 11.67 euros per square meter in January 2024 to the aforementioned 12.95 euros per square meter in January 2025. A comprehensive examination of rental prices reveals that 16 out of 17 autonomous communities experienced year-on-year increases in January. Regions exhibiting growth exceeding 10% include Castilla-La Mancha (19.9%), Madrid (18.4%), the Region of Murcia (15.0%), Navarre (14.7%), La Rioja (14.5%), Catalonia (14.1%), Aragon (13.3%), Asturias (12.7%), Galicia (11.6%), the Valencian Community (11.0%), and Andalusia (10.6%). The remaining communities, such as the Basque Country (9.6%), Extremadura (9.0%), the Canary Islands (8.9%), the Balearic Islands (8.8%), and Castilla y León (6.7%), also reported increases, albeit at a lower rate.
When examining the ranking of communities with the highest rental prices, four regions stand out with costs exceeding 15.00 euros per square meter per month: Madrid (20.88 euros/m2), Catalonia (18.41 euros/m2), the Balearic Islands (18.34 euros/m2), and the Basque Country (16.79 euros/m2). Following closely are the Canary Islands (13.95 euros/m2), Navarre (13.04 euros/m2), the Valencian Community (12.95 euros/m2), Cantabria (11.51 euros/m2), Andalusia (11.17 euros/m2), Asturias (10.72 euros/m2), Aragon (10.56 euros/m2), La Rioja (9.88 euros/m2), Galicia (9.61 euros/m2), the Region of Murcia (9.38 euros/m2), Castilla y León (9.10 euros/m2), Castilla-La Mancha (7.47 euros/m2), and Extremadura (6.91 euros/m2).
Focusing on the Valencian Community, the province of Valencia recorded a year-on-year increase of 10.8%, while Alicante and Castellón saw increases of 9.7% and 9.5%, respectively. In terms of pricing hierarchy, Valencia leads at 14.37 euros/m2 per month, followed by Alicante at 12.12 euros/m2, and Castellón at 8.75 euros/m2. Among municipalities, Castelló de la Plana exhibited the most significant increase in January, soaring by 17.2%. This was followed by Sant Vicent del Raspeig (16.8%), Calp (16.0%), Sagunt (15.3%), Alcoy (14.3%), Orihuela (14.0%), Santa Pola (11.3%), Torrevieja (11.2%), and Alicante (10.0%).
Notably, 10% of municipalities within the Valencian Community have rental prices exceeding 15.00 euros/m2 per month. These municipalities include L’Alfàs del Pi (17.06 euros/m2), Alboraya (16.91 euros/m2), Finestrat (16.38 euros/m2), and Benidorm (16.23 euros/m2). Conversely, the municipalities with the lowest rental prices per square meter are Burriana (6.99 euros/m2), Alzira (7.10 euros/m2), Alcoy (7.28 euros/m2), Vila-real (7.32 euros/m2), Onda (7.36 euros/m2), Elda (7.52 euros/m2), Benicarló (7.56 euros/m2), and Novelda (7.61 euros/m2).
The current landscape of rental prices in the Valencian Community and across Spain reflects a complex interplay of heightened demand, dwindling supply, and historical price surges, painting a vivid picture of a market in flux.
