The rental market in Spain continues its unstoppable ascent. According to the latest data from the real estate portal Idealista, rental prices increased by 4.4% in the second quarter of the year and by 9.7% in June compared to the previous year, reaching a new all-time high of 14.6 Euros per square meter.
Interventionism Fuels Crisis: Experts Warn of Consequences
This new price milestone has not surprised industry experts, who have been warning for some time about the consequences of the interventionist policies of Pedro Sánchez’s government. Francisco Iñareta, spokesperson for Idealista, lamented: “The disaster in the Spanish rental market is a reality. Years of persecution of landlords and harmful measures, culminating in the passing of the Housing Law, have only led to a significant portion of the available rental supply disappearing, causing prices to rise due to the supply and demand tensions shown in this report.”
Collapse of Supply: Tenant Protection at the Expense of the Market?
As many feared, the rent price caps and excessive tenant protection against landlords have led to a collapse in supply, while demand continues to rise. This is the result of an interventionist policy that has not solved the problem but exacerbated it.
Most Expensive Rental Communities: Where Prices Soared
The price increase has been observed in all communities over the past year, with the highest increases in Castilla-La Mancha (+12.7%), La Rioja (+12.4%), Madrid (+11.7%), Andalusia (+11.2%), Catalonia (+10.7%), the Valencian Community (+10.2%), and Castilla y León (+10.1%). The Balearic Islands saw the smallest increase at 1.6%.
The Balearic Islands remain the community with the most expensive rents at 20.2 Euros per square meter, followed by Madrid (20.1 Euros), Catalonia (19.2 Euros), and the Canary Islands (15.1 Euros).
On the other hand, Extremadura (7.3 Euros), Castilla-La Mancha (7.9 Euros), and La Rioja (9 Euros) are the most affordable communities.
Provincial Outlook: Exceptions and Dramatic Increases
All Spanish provinces recorded higher rental prices than a year ago, with three exceptions: Lleida (-4.1%), Huelva (-0.8%), and Girona (-0.5%).
The largest increase was recorded in Zamora, where prices rose by 18.7%. Significant increases were also seen in Segovia (+18.2%), Guadalajara (+16.1%), Toledo (+14.4%), and Ávila (+14%). In Madrid, prices increased by 11.7%, while in Barcelona they remained at 9.9%.
As a result, Barcelona (20.7 Euros), the Balearic Islands (20.2 Euros), Madrid (20.1 Euros), and Guipúzcoa (16.8 Euros) are at the top of the most expensive provinces.
