Renting a two-bedroom property costs 83% more than the mortgage payment required to purchase the same home. However, buying needs a down payment of €48,480, according to a study published by idealista. In Spain, the median rent for a two-bedroom property is €1,042 per month, while the mortgage payment for buying the same property is €570 per month. Francisco Iñareta, spokesperson for idealista, explains, “the study highlights the complex situation families face in accessing home ownership. In nearly all markets, families find it easier to afford the mortgage repayments than monthly rent, but many cannot make the leap due to insufficient savings.”
“Unfortunately,” the expert adds, “high rental prices hinder people's ability to save enough for a home, limiting their access to financial stability and comfort. As it seems unreasonable to expect the financial system to ease its risk criteria, the only viable solution to this vicious cycle is to implement measures that significantly increase the supply of rental housing. This would help reduce prices and foster a healthier real estate market.”
Differences between rent and mortgage repayment
In general, the difference between renting and mortgage repayments is smaller in provincial capitals, with only Lleida (101%) surpassing the national average. Following this are Huelva (83%) and Murcia (74%). Among the larger markets, Valencia shows the greatest difference, with rent costing 61% more than mortgage repayments, followed by Barcelona (51%), Alicante (42%), Bilbao (35%), and Seville (33%). In contrast, Malaga (where rent is 17% higher than mortgage repayments), Madrid (11%), and Palma (4%) show much lower differences. Cadiz and San Sebastian are the only provincial capitals where rent is less than the mortgage commitment, at -6% and -12% respectively.
In the case of the provinces, the differences between buying and renting are more notable. Barcelona province shows the greatest differences, with rent 130% higher than the mortgage repayment, followed by the provinces of Valencia (113%), Lleida (104%), Toledo (102%) and Avila (100%), which form the group of provinces where the cost of rent is at least double mortgage repayments.
Santa Cruz de Tenerife province is in the opposite situation, with a difference of 10%, followed by Huesca (20%), Baleares (23%), Alicante (24%), Cadiz (27%) and Malaga (27%). In the Community of Madrid, the difference is 40%.
Savings needed to access a mortgage
Nevertheless, savings are crucial for accessing mortgage financing to cover the down payment, which averages around 30% but varies by autonomous community. Palma has the highest average down payment at €119,179 among provincial capitals.
Following Palma are San Sebastian (€101,551), Madrid (€99,496), Barcelona (€95,766), and Malaga (€79,304). In larger markets, Valencia requires a down payment of €65,997, while Alicante requires €63,045. Seville (€49,902) and Bilbao (€49,106) fall below the €50,000 threshold. Jaen has the lowest savings requirement at €25,049, followed by Huelva (€26,383) and Zamora (€27,640).
The Balearic Islands have the highest entry amount for a mortgage at €116,857. They are followed by Malaga (€83,317), Madrid (€73,356), and Santa Cruz de Tenerife (€69,895). In Barcelona, the amount required to secure a mortgage is €56,368. Conversely, Jaen province has the lowest down payment requirement, at just €20,764, followed by Ciudad Real (€21,229) and Avila (€22,600).
Rent prices vs mortgage payments
Among provincial capitals, Barcelona has the highest rental prices for two-bedroom properties, averaging €1,574 per month, followed by Palma (€1,457) and Madrid (€1,410). In contrast, Ciudad Real offers the lowest rental rates at €466 per month, followed by Palencia (€488) and Zamora (€512).
San Sebastian has the highest average monthly mortgage repayments at €1,440, followed closely by Palma (€1,396), Madrid (€1,269), Barcelona (€1,041), and Malaga (€961). The lowest repayments are in Jaen (€304), Lleida (€317), and Huelva and Zamora, both at €320.
Methodology
For this report, the idealista/data team analysed the median sale and rental prices for two-bedroom properties in its database during Q2 and applied corrective factors to determine the final closing price. Property prices were estimated on a provincial basis according to the property transfer tax (ITP) and stamp duty (AJD) applicable in each province during the same period, while notary, registration, and management fees were applied uniformly across the country. The latest data published by the Bank of Spain on interest rates was used to calculate the mortgage payment.
Data compiled and analysed by idealista/data, idealista's proptech, which provides information for a professional audience to facilitate strategic decision-making in Spain, Italy and Portugal. It uses all the idealista database parameters in each country and other public and private data sources to offer valuation, investment, recruitment and market analysis services.