Real estate agency Engel & Völkers has reported that its properties in Madrid are rented to foreign students within "hours". This rapid turnover is especially notable in the districts of Salamanca, Chamberí, Chamartín, and Centro, with a particular focus on Malasaña-Universidad and Las Letras.
The high demand in Spain's rental market means that these students, who come from abroad, accept the offer without even viewing the property, as has recently happened to the real estate agency. "Foreign students know that landlords are more reticent because of their age, as opposed to middle-aged families or professionals, so they bid quickly and are often backed by their parents’ solvency," says Juan Uribe, director of rentals at Engel & Völkers Madrid.
Foreign demand
According to the company, foreign students seeking housing in Madrid often prefer furnished properties with two bedrooms and two bathrooms, located in the city's premium areas. This preference reflects a "significant increase in demand from foreigners with high purchasing power", who are not only coming to study but sometimes also to work, including remotely, as noted by Uribe.
Data from idealista/data for June 2024 shows that rental prices in Madrid (€19.8/m²) have risen by 17.9% over the past year. Despite the increase, the company reports that properties with balconies or terraces remain "the most sought after and the quickest to rent, despite being more expensive".
The real estate company also reports that over half (57%) of its leasing transactions in 2023 were with foreign clients, and it anticipates that this trend will remain steady or increase in 2024.
The company’s most sought-after areas include Madrid Capital, with an average monthly rental price of €2,350; Barrio de Salamanca, the priciest neighbourhood at €3,500 per month; and Chamartín, with an average of €2,220 per month.
The 7 Spanish cities with record house prices
Average property and rent prices in Spain have seen two consecutive months at maximum prices, according to the latest idealista reports. At the end of June, up to seven provincial capitals saw record property and rent prices on the real estate platform. We analyse property and rent prices of the districts in the cities of Barcelona, Madrid, Valencia, Malaga, Palma, Las Palmas de Gran Canaria and Cadiz.