Rental prices keep breaking records amid a shortage of supply and an increase in demand. Among the towns with the greatest demand pressure, those on the outskirts of the major capitals continue to dominate, with Getafe and Hospitalet de Llobregat as the main examples, compared to the large cities. Only Vitoria is in the top 10. Just over half (53%) held total average rent below €900 per month during the first quarter, according to idealista/data.
The increased pressure of demand in the regular rental housing market is increasingly prominent in the outskirts of Spain's major capital cities in the first quarter of 2024, according to the idealista/data study.
Of the towns that have a large stock on the market, with more than 1,400 listings published between sales and rentals during the period analysed, there are more than a hundred locations, with the towns around the major capitals standing out above all others.
Getafe (Madrid), Vitoria and Hospitalet de Llobregat (Barcelona) are among the places with the highest demand. This is a good example of how the main towns with the highest demand are distributed between the capitals and the outskirts of the two largest cities in Spain.
Of the top 20 locations, there are seven provincial capitals, large cities and island capitals, seven towns in the metropolitan area of Barcelona, another three in the Madrid beltway, as well as other locations on the outskirts of Valencia, Santa Cruz de Tenerife and Palma de Mallorca.
After the three already mentioned, Móstoles and Alcalá de Henares, in Madrid, Terrassa, Manresa, Badalona, Mataró, Sabadell and Vilanova i la Geltrú, in Barcelona, as well as Zaragoza, Palma, Santa Cruz de Tenerife and Las Palmas de Gran Canaria.
Torrent, in the vicinity of Valencia, Arona, on the island of Tenerife, and Manacor, in Mallorca, complete this ‘top 20’ of the most sought-after locations for rental properties.
Behind them are the remaining provincial capitals – Malaga (26), Valencia (27) or Seville (41) – together with towns that are known for being important tourist centres, such as Salou (Tarragona); Fuengirola or Torremolinos, in Malaga; Gandía (Valencia) or Torrevieja (Alicante).
Almost half of the most sought-after locations are rented for more than €900/month on average
The data also show the average rental prices of these most sought-after locations. Of the 10 most sought-after towns, only four have total average rents below €900/month. They are Alcalá de Henares (€894/month), Terrassa (€850), Manresa (€696) and Torrent (€891).
Fifty-one locations out of the 110 locations with the highest demand pressure in the rental market report rent above €900/month. Therefore, there are more towns, up to 53% of the total, that still have rents below €900/month.
Up to the ‘top 20’, only two capitals register total average rents below €900 per month. They are Santa Cruz de Tenerife (€887/month) and Zaragoza (€724). While capitals such as Palma (€1,681), Barcelona (€1,669), Madrid (€1,565) or Las Palmas de Gran Canaria (€972) exceed it, along with Sabadell (€980) or Mataró (€924).
The towns with the highest rental demand and the most affordable prices are Ciudad Real at €513/month); Palencia at €534, and a tie between Ourense and the Almeria town of Vera at €592.
A further 14 towns among the most sought-after still offer prices between €600 and €700 per month on average, such as Manresa (€696), Castellón (€686), Burgos (€650) and Algeciras (€602).
Coastal towns with high-end rental properties have the highest rents. Benahavís stands out (€3,442/month), ahead of Marbella (€2,987), Calvià (€2,818) and Sotogrande (€2,621).
Still above €2,000 per month are Estepona (€2,394), Sant Cugat del Vallès (€2,240), Finestrat (€2,231) and Adeje (€2,043). Sitges (€1,980), Castelldefels (€1,958), Llucmajor (€1,945) and Alfaz del Pi (€1,939) are also very close to this figure.
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.