Rental housing prices in the Canary Islands have surged by 13% over the past year, with a significant 5.2% increase in just the first quarter, setting the price at 13.45 euros per square meter monthly, as reported by the Fotocasa Real Estate Index.
Nationally, Spain has seen a 6% rise in rental housing prices quarter-over-quarter and a 7% increase year-over-year, reaching 12.36 euros per square meter per month.
María Matos, Director of Studies and spokesperson for Fotocasa, commented that rental prices have hit a new “historic high” nationwide, describing the trend as “alarming” due to its continued strong escalation without any signs of slowing. Matos attributed the price hikes primarily to the conversion of residential leases into seasonal rentals or shared rooms.
Regional Analysis Highlights on Rental Housing
Across Spain’s autonomous communities, 16 have reported quarterly price increases, with 17 noting annual rises. Notably, ten regions have surpassed their maximum historical prices. Madrid leads with 18.32 euros per square meter per month, followed by the Balearic Islands (17.54 euros), Catalonia (16.49 euros), and others including the Basque Country and Valencia.
Significant quarterly growth was observed in several regions, with the highest in Castilla-La Mancha (10.7%), La Rioja (8.9%), and Murcia (7.9%). Conversely, ten provinces experienced declines this quarter, with Álava seeing the largest drop at -8.4%.
Among provinces, Barcelona and Madrid top the price rankings at 18.42 euros per square meter monthly, with Gipuzkoa and the Balearic Islands also reporting high rates.
This data underscores the dynamic nature of Spain’s rental market, with significant variability in both regional and provincial price movements.
