Property for rent in Spain

Five of the 10 most popular locations to find a rental apartment during the second quarter of the year are in the metropolitan area of Barcelona. According to the idealista study, Hospitalet de Llobregat leads the relative rental demand between April and June, followed by Badalona and Vitoria, the first provincial capital on the list. After them, Terrassa, Manresa and Sabadell complete this Barcelona quintet, all of them ahead of Barcelona (8). Still in this 'top 10' the Madrid town of Alcala de Henares and two cities in Tarragona such as Salou and Reus also appear.

Employment is one of the great drivers of rental demand in Spain, along with the creation of homes. An Urban Land Institute (ULI) report shows the strong growth in Social Security registration that the country's main provincial capitals have seen in the last five years, reaching record levels in Alicante, Madrid, Malaga, Bilbao, Seville and Murcia.

Ocaña (Toledo), Alhaurin el Grande (Malaga), Jodar (Jaen) and Riba-roja de Turia (Valencia) are the towns that have seen the biggest rent hikes between 2015 and 2022, according to the INE's Rental Housing Prices Index (IPVA), with increases of more than 27% in all cases. The first provincial capitals that appear on the list are Valencia (23.3%), Palma (21.8%) or Malaga (21.4%).

Volantazo in the Barcelona City Council in terms of housing. Mayor Jaume Collboni has presented his plan to address the problem of access to housing suffered by the Catalan capital, with “rental prices skyrocketing and becoming more expensive every day.”

To rent a house safely, you must pay special attention to two issues: the tenant and the rental contact. Screening the candidate and a well-drafted contract are a good safeguard against future problems. But what happens when you don't take the right precautions?

​​​​​​​Rent an apartment on the beachfront will mean an average expense of about 1,160 euros per week, according to the study carried out by Tecnitasa for the month of August. This price is almost 10% more compared to last summer, and more than 40% if we compare it with the summer of 2020, coming out of the worst of the pandemic.

According to a study published by idealista, the southern European real estate marketplace, 18% of the properties that were rented through idealista during the first quarter had not even been on the market for 24 hours, compared to 16% in the same period in 2023. This immediate rental phenomenon increases in 26 provincial capitals between January and March, where Tarragona (31%) and San Sebastián (29%) stand out. In Barcelona and Madrid, express rentals remain stable and account for 17% and 15% of the supply that has left the market in the first three months of 2024, respectively.

In the dynamic real estate market, the minimum duration of rental contracts is a crucial issue for both tenants and landlords. Understanding the rules and regulations is essential to avoid misunderstandings and ensure a fair and legal agreement.

Renting rooms is becoming an increasingly common practice in Spain, especially in cities where it is too expensive to rent the entire property, as is often the case in province capitals. So, if you're looking to rent a room or if you're a landlord and you want to rent one out, you need to be aware

Valencia City Council unanimously approved suspending the processing and granting of licences for tourist flats in the city for one year, which can be extended for a further year. The proposal promoted by María José Catalá's city council was approved by all the parties, PP and Vox in the government and Compromís and PSPV-PSOE in the opposition. The suspension will affect temporary accommodation in regular blocks of flats and commercial ground floors in the city that request it, but not blocks of tourist apartments or tourist apartments on the first floors that have an independent access.

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.

The number of tourist properties in Spain has risen sharply in the last year. According to the INE, in February there were 351,389 tourist flats throughout Spain, representing an increase of 9.2% year-on-year. Andalusia is the region with the most units (82,454), followed by the Valencian Community (59,413) and Catalonia (52,598). Currently, tourist flats represent 1.33% of the total residential stock, although their weight exceeds 1% in provinces such as Girona, Malaga, Santa Cruz de Tenerife and Las Palmas. On the other hand, in Madrid and Barcelona they represent less than 0.7%.

In the age of digitalisation and instant messaging, it is becoming increasingly common for negotiations and agreements to be conducted through electronic channels, such as WhatsApp. Leases are no exception to this trend, with landlords and tenants looking to simplify processes.

Legally renting a property for tourist purposes implies complying with certain requirements that may vary depending on different factors: whether it is a business or professional activity; where the accommodation is located; whether or not it is in a horizontal property regime... Firstly, you should know who regulates tourist accommodation: the regulations that regulate flats and houses for tourist use in Spain are the responsibility of the autonomous communities and the owners themselves.

A lack of rental supply is driving more tenants to sublet rooms without the landlord's consent, as reported by the Agency for Rental Negotiation (ANA). However, the real problem arises when those who do so seek to make a business out of subletting, which, moreover, they do not declare. The ANA is committed to improving the search for solvent tenants and penalising these practices in the contracts.

The Bank of Spain has analysed the weight that tourist accommodation has in the rental stock of the 25 urban areas with the highest density of holiday homes and Marbella and Elche at the top of the ranking. In Malaga, tourist apartments represent almost 65% of the rental market in the city centre, while the Alicante town's weight is close to 70% in the peripheral area. On the other hand, in Spain as a whole they represent 10%, more than double that of Madrid or Barcelona.

Embarking on the quest for affordable apartments for rent in Spain unveils a world of opportunity for both locals and international seekers. This journey is inspired by the allure of Spain's vibrant culture, mild climate, and scenic landscapes, all accessible without straining your wallet.

Rental listings posted on idealista in the first quarter of 2024 received an average of 27 leads before they were removed, a figure that is 55% higher than that recorded in the same period of 2023. This surge in demand pressure, caused by the decrease in available supply, has led to rental prices rising by 12.6% in the last year, according to a study published by the southern European real estate marketplace. The contacts received per advertisement in Madrid (41) and Barcelona (40) skyrocketed, while Vitoria, Guadalajara and the Canary Islands capitals reached the highest volume of interested people.

Seasonal rentals keep gaining relevance in the real estate market to the detriment of permanent rentals, as a consequence of the successive policies that are driving this phenomenon. In the first quarter of 2024, this type of rental accounted for 11% of the market, with a year-on-year increase in supply of 56%, while the permanent rental supply fell by 15% in the same period.

The reduction in permanent rental stock in Catalonia has gained new momentum after price controls came into force due to the Housing Law on 16 March: stock falls by 13%, according to an idealista study.

The Government of the Canary Islands has presented the draft Law on Sustainable Management of the Tourist Accommodation, which will provide city councils with tools to plan and organise the tourist accommodation. The new standard establishes that 90% of the residential buildable area must be used as a permanent residence and explains why the use of accommodation can be enabled. Current properties intended as holiday homes and/or tourist accommodation must meet minimum requirements of sustainability, quality and competitiveness within a period of five years.

The lax monetary policy from central banks, printing money to no end, over the last years has led to a huge inflation spike.

Last 16 March, the Government's new reference index for capping rent and the ratio of stressed residential market areas in Catalonia (140 towns and cities) came into force. Ashurst law firm has prepared this guide to address all rent cap queries.

In recent times, irregular practices have been escalating in the rental market in Spain. Experts are detecting that some landlords are flouting the mandatory renewals to which tenants are entitled. To do this, they claim they need to recover the home, reside in it for a time and then sell or rent it at a higher price.

Homeownership is losing ground in Spain in favour of renting.