High prices and intense competition in Spain's property rental market are leading many people to opt for renting a single room. An average of 22 people are now interested in each room advertised, according to a study published by idealista. This level of competition is lower than that for entire homes, partly because the available supply of rooms has grown by 24% over the past year.
During the second quarter of the year, the city of Palma recorded the highest interest, with 65 contacts for each advertised room. It was followed by San Sebastián, with 62 people interested in each listing, Tarragona (46), and Vitoria (39).
Several other cities also saw competition above the national average, including Girona (39 people), Málaga (38), Lleida (35), Bilbao (35), Cádiz (30), A Coruña (29), Huelva (28), Santander (26), Guadalajara (26), Seville (25), Santa Cruz de Tenerife (24) and Huesca (23).
In Barcelona, demand is in line with the national average at 22 people per room, while in Madrid, the figure stands at 20 people.
Conversely, the cities with the least competition for rooms on the market were Córdoba, Salamanca and Castellón, with only nine contacts per advertisement. The list of capitals with lower intensity is completed by Melilla (10 people), Cuenca, Ceuta and Soria (with 11 people in each).
National demand for rooms for rent declines
The number of people interested in each room has decreased by 2% at a national level. However, competition has intensified in 34 provincial capitals. The most significant increase was in Logroño, where it rose by 114%. Among the larger markets, competition also grew in Seville (48%) and Alicante (8%).
In other dynamic markets, the competition has eased, including in San Sebastián (-3%), Bilbao (-10%), Madrid (-13%), and Málaga (-19%). The sharpest falls in competition for rooms were seen in Palma, Barcelona, and Valencia, each recording a 28% drop.
This report is based on data compiled and analysed by idealista/data, a division of idealista that provides information for professionals to facilitate strategic decision-making in Spain, Italy and Portugal.