Discover the latest trends in Spain’s rental housing market as prices climb 14.1% year-on-year in July 2025. Get insights from the Fotocasa Real Estate Index on average rental costs per square metre and what this means for renters and landlords alike.
The Spanish rental property market continues its impressive upward trend, with the latest data from Fotocasa revealing a striking 14.1% year-on-year rise in rental prices as of July 2025. Despite a slight monthly decrease of 0.1% in July, the average rental price has reached €14.37 per square metre, marking a significant increase from the previous year.
Average Rental Costs Reach New Highs
For the typical 80-square-metre apartment in Spain, the average month-to-month cost has climbed from €1,007 in July 2024 to €1,150 in July 2025. This sustained rise represents the latest in a series of double-digit annual increases, highlighting the competitive and dynamic nature of Spain’s rental property market.
Growing Demand Meets Limited Supply
Industry experts, including those at Fotocasa, point to a shortage of available rental properties alongside growing demand as principal factors behind the accelerating price hikes. With more families and individuals seeking housing, the rental market is experiencing unprecedented competition, further complicating housing access for many Spaniards.
Fotocasa emphasizes the ongoing impact: “The shortage of available supply, coupled with growing demand, is accelerating the rise in rental prices in Spain.” This trend is placing additional economic strain on thousands of households, as the pathway to affordable rental accommodation becomes increasingly challenging.
Widespread Price Increases Across All Autonomous Communities
Every one of Spain’s 17 autonomous communities experienced year-on-year rental price increases in July 2025. Some regions saw particularly sharp upswings, with six communities registering price growth greater than 10%:
- Catalonia: 21.2% increase
- Castilla-La Mancha: 13.3% increase
- La Rioja: 12.9% increase
- Valencian Community: 11.8% increase
- Andalusia: 10.8% increase
- Aragon: 10.0% increase
Other notable regional increases include Madrid (9.5%), Asturias (9.0%), and Castilla y León (8.0%), with locations such as the Balearic Islands (7.8%), the Canary Islands (7.4%), and Galicia (7.5%) also showing substantial growth.
Key Takeaway: A Challenging Market for Renters
The continuous growth in Spain’s rental property prices, fueled by high demand and limited inventory, suggests that the rental market is unlikely to cool off anytime soon. Prospective tenants across Spain, especially in high-growth regions like Catalonia and the Valencian Community, face escalating costs and increased competition for available properties.
As Spain moves through 2025, monitoring these trends is crucial for renters, landlords, and policymakers alike. Navigating the tightening market requires careful planning, and those entering the rental market should be prepared for higher prices and increased competition.
For more information about Spain’s property market trends, stay tuned to a’esgium for latest real estate updates.
