The Canary Islands have seen the highest rise in rental prices among Spain’s autonomous communities, with an increase of 27% in August compared to the same month last year, reaching 12.66 euros per square metre, according to the monthly rental price report by Pisos.com. Compared to the previous month, rental prices on the islands saw a modest increase of 0.13%.
Overall, rental housing prices in Spain grew by 8.22% year-on-year, with the average price per square metre standing at 11.85 euros in August, representing a monthly increase of 0.34% compared to July.
Ferran Font, the director of research at Pisos.com, commented that the ongoing rise in rental prices continues to frustrate people who are seeking independence or hoping to find better housing. He noted that many people are being forced to delay their life plans due to the financial burden, not only of monthly rent payments but also of the stringent guarantees required, such as multiple guarantors.
Font highlighted that landlords have tightened requirements out of fear of non-payment, property damage, and illegal occupancy. While acknowledging that government aid offers temporary relief, he cautioned that such measures might inadvertently cause an artificial rise in rental prices. He argued that unless the construction of rental properties becomes more appealing to developers and investors, subsidies will merely provide a temporary fix without addressing the core issue.
He further warned that searching for a rental flat is becoming increasingly difficult, with high prices and a limited, outdated supply. The market, he added, is losing competitiveness rapidly, which significantly impacts the creation of new housing.
Most Expensive and Cheapest Regions for Renting in Spain
The monthly report from Pisos.com revealed that the most expensive regions to rent in August 2024 were the Balearic Islands, with an average price of 18.41 euros per square metre, followed by Madrid (17.58 euros) and Catalonia (13.55 euros). In contrast, the lowest rents were in La Rioja (4.29 euros per square metre), Castilla y León (5.06 euros), and Extremadura (5.09 euros).
The most notable monthly increase was in the Balearic Islands (2.57%), while the largest drop occurred in Cantabria (-2.70%). Year-over-year, La Rioja experienced the most significant decline (-7.82%).
Provinces with the Highest and Lowest Rental Prices
In the ranking of provinces by rent for August 2024, the Balearic Islands topped the list at 18.41 euros per square metre, followed by Madrid (17.58 euros) and Barcelona (17.08 euros). On the other end, Ávila had the lowest rental prices at 3.32 euros per square metre, with Orense (3.35 euros) and Cuenca (3.52 euros) also among the cheapest.
Barcelona saw the highest month-on-month increase in rents (2.89%), while Granada experienced the most significant drop (-3.08%). Over the past year, Santa Cruz de Tenerife recorded the highest increase (28.15%), whereas Salamanca had the steepest decline (-17.83%).
