The demand for rented flats looks to the outskirts of Barcelona and Madrid and grows in Palma
Palma de Mallorca GTRES

idealista/data's ranking for the second quarter of 2023 of the 100 most sought-after towns and cities in the rental market, compiled with statistics on rent and relative demand, once again classifies the most sought-after areas among idealista users looking for a rental property and the median prices of the properties listed on the real estate marketplace. To be included, they must have a large stock of listings on idealista (more than 1,450 for sale and rent) during the period analysed.

The average rental price in Spain increased by 9.2% year-on-year between April and June, according to the idealista report, while it continued to rise in July, with a tenth of a percentage point more (9.3%), and once again reached the highest level in idealista's records.

Santa Coloma is ahead of the 'classics' in rental demand: Hospitalet and Vitoria

So far in 2023, the two rental demand rankings have been topped by towns/cities that have never seen the top spot. The requirement of having a large stock of listings on the market means that some towns and cities move in and out of the list from one quarter to the next.

Vitoria (€893/month) and L'Hospitalet de Llobregat (€965/month) have topped the rental demand ranking for the last few years, alternating the leadership. Torrejón de Ardoz (Madrid) topped the list in the first quarter, but Santa Coloma de Gramenet (€842/month) does now. It is a town in the metropolitan area of Barcelona that moved straight into first place without even being on the list at the beginning of the year.

These three towns are followed by Mostoles, Madrid (€835/month) and another new entry since the previous quarter, Cornella de Llobregat (€933/month), also on the outskirts of the Catalan capital. There is clearly an interest in living near Barcelona, with Badalona taking tenth place (€1,147/month).

Before, Reus (€669/month) in Tarragona remained at the top, together with Fuenlabrada (€834/month), Palma (€1,560/month), and Fuengirola (€1,111/month) entered the top 10, illustrating how demand for the coast increases right at the start of the summer.

The second quarter usually sees increased demand for renting in coastal locations, meaning many tourist locations rise in the demand ranking. On this occasion, Torremolinos (€1,013/month), Torrevieja (€779/month), Gandia (€748/month) or Benidorm (€1,047/month), which appear in the next ten spots in the table, between autonomous capitals such as Pamplona (€929/month), Barcelona (€1,550/month) or Malaga (€1,127/month), are worth highlighting.

idealista ranking 2Q 2023 | Most popular areas to rent

RankingMunicipalityProvince
1Santa Coloma de GramenetBarcelona
2Hospitalet de LlobregatBarcelona
3Vitoria-GasteizÁlava
4MóstolesMadrid
5Cornellà de LlobregatBarcelona
6ReusTarragona
7FuenlabradaMadrid
8PalmaBalearics
9FuengirolaMálaga
10BadalonaBarcelona
11MataróBarcelona

Half of the towns with the highest rental demand are over €900/month

If we look at the average price of the existing supply during the second quarter of 2023, the classification takes a complete turn once again, and practically all of the most sought-after towns disappear. Among those locations that meet the requirement of having a quarterly stock of more than 1,450 listings, Benahavis (€3,286/month), Calvia (€3,232/month), and Marbella (€3,159/month) stand out in terms of price.

Next in line are Estepona (€2,710/month), Sotogrande (€2,665/month) and Castelldefels (€2,489/month). Below €2,000 are Sant Cugat de Valles ( €1,940), Altea (€1,884), Llucmajor (€1,873), Mijas (€1,777), Adeje (€1,736) and Sitges (€1,725). All of them, except Sant Cugat, are on the coast.

Palma and Barcelona, mentioned above, and Madrid (€1,394/month) are the first autonomous capitals on the list. Thirty-seven towns and cities have average prices over €1,000 per month, while half of them are above €900.

Rental prices in the most expensive 10 sought-after municipalities

RankingMunicipalityProvinceAverage rental price (euros/m2)
1BenahavísMálaga3,286 euros/month
2CalviàBalearics3,232 euros/month
3MarbellaMálaga3,159 euros/month
4EsteponaMálaga2,710 euros/month
5SotograndeCádiz2,665 euros/month
6CastelldefelsBarcelona2,489 euros/month
7Sant Cugat del VallèsBarcelona1,940 euros/month
8AlteaAlicante1,884 euros/month
9LlucmajorBalearics1,873 euros/month
10MijasMálaga1,777 euros/month

Methodology

At idealista, we rank the most prominent towns and cities by total price and relative demand during the second quarter of 2023. To create the different rankings, we have looked at, on the one hand, the average housing price in towns/cities with more than 1,450 listings for sale on idealista, southern Europe's largest property website, costing over €1,100/m2 for sale, and more than 155 listings for rent during the period analysed.

Also, using idealista user behaviour data, we compiled the demand pressure on supply indicator. This indicator is based on the number of leads (email contacts, counter-offers and times saved in favourites) received per listing on idealista. On the one hand, leads show the demand for housing by users. On the other hand, the number of listings measures the housing supply available on the portal. Therefore, the indicator summarises the pressure of demand on supply in each area of Spain and for each market segment (sale and rental) and is used to measure situations of heating or cooling of the market when the relative demand is high or low, respectively. This data is analysed by idealista/data.