The Spanish rental market continues to heat up, with average rental prices reaching €13.94 per square metre in October 2025. According to the latest rental price report, this represents a 1.09% increase compared to September and a striking 17.24% surge compared to October last year.
Urban Demand Drives Rental Spike
The relentless climb in rental prices is largely driven by strong demand in urban centers. While some tenants are migrating to city peripheries seeking more affordable housing, it remains challenging to convert idle properties in poorly connected locations into viable rental options. As a result, urban areas continue to command premium prices, shaping an increasingly tight rental market and putting pressure on tenants across the country.
Regional Differences: Where Is Renting Most Expensive and Where Is It Cheapest in Spain?
Barcelona remains the priciest Spanish capital for renters, reinforcing its status as a major urban hotspot. At the regional level, Madrid tops the list with an average price of €21.52 per square metre, followed by the Balearic Islands (€18.49/m²) and Catalonia (€16.03/m²).
On the opposite end of the spectrum, La Rioja (€5.96/m²), Castilla y León (€6.45/m²), and Extremadura (€6.63/m²) offer the most affordable rental options. This regional divide highlights stark contrasts in housing costs across Spain, intensifying the urban-rural rent gap.
Notable Price Movements by City and Region
- Biggest Annual Rises: Seville leads with an astonishing 31.08% increase compared to last year, followed by strong growth in Asturias (29.02%).
- Major Drops: Three capitals saw double-digit declines year-on-year: Lleida (-14.25%), Huelva (-11.88%), and Palencia (-10.39%).
- Latest Monthly Changes: The most significant rise in October 2025 was in La Rioja (up 2.58%), while Murcia experienced the largest decrease (down 0.77%). However, on a year-on-year basis, no region recorded a drop.
Market Outlook: More Tension on the Horizon?
With a 16.18% year-on-year increase in average rents for Q3 2025 alone, Spain’s rental market remains under considerable strain. Unless new housing supply or effective policies are introduced, tenants—especially those in urban hot spots—may continue to face rising costs and limited options.
Whether you’re a prospective tenant or a current renter, staying informed about the latest rental price trends is crucial for navigating Spain’s highly dynamic housing market. As demand remains urban-focused and regional disparities grow, understanding where to find value—and how to plan your next move—has never been more important.
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