Rental Market in Spain - Spain Blog

Rental Market in Spain

Rental Market in Spain

Rental Market in Spain

With a boost in the Spanish economy since the recession and the property marketing recovering to 2007 levels, more and more house owners are putting their properties on the market having rented them out throughout the market slump. Consequently, however, this leads to a decline in supply and increase in demand and therefore driving prices up in many parts of the country, as proven by the 18% rental price increase in the last 4 years.
Barcelona and Madrid, in particular, are facing record highs for rental prices, and the average rental price throughout 2017 was 8.8% from the previous year, now totalling 8.15€ per square metre on average across the country. Cataluña, however, saw rents increase by 10.2% to 12.39€ per square metre, and inMadrid, the average rental price per square metre hit 11.43€ with an increase of 6.3% from the previous year.
That said, the most recent statistics produced by Idealista, a leading property portal, show that Madrid beats Barcelona in terms of profitability as Madrid has a rental yield of 5.4% and Barcelona of only 4.9%. This is way below the nation’s top of 8.1% in Gran Canaria, but still higher than the north of Spain where yields reach as low as 4.2% in San Sebastian, for example.
Illegal subletting is rife in Spain and is having its own effect on the rental market. For example, Airbnb which was founded in 2008, has become a very important part of tourism in today’s world. Typically, flats are rented at market value, and then the tenant sublets the property – perhaps through Airbnb or other similar mediums – to earn a profit. Not only does this limit the amount of stock available for locals, it in turn raises rental prices and upsets locals.
Cities in Spain are working to counteract this and are enforcing different rules in different municipalities. Barcelona has its own enforcement team to ensure that the sublessors are licenced (many of which are not), Madrid is restricting the number of buildings in the city centre that can be rented, and tourist apartments will have to have a separate entrance to that of the locals, which is predicted to reduce the number of apartments rented by about 95%.

Valencia is limiting short-term rental apartments to just ground and first floors, to preserve the sea views for the locals, and Palma de Mallorca has voted for a ban of almost all short-term holiday rental platforms.
The ultimate objective of these restrictions is to detract tourists from residential areas which will enable house prices to grow at a controllable rate, and thus help to level out the supply and demand. Spain is not the only place to be introducing such forces, however, as other cities across the globe like New York, Amsterdam and Reykjavik are also placing heavy restrictions on Airbnb and its competitors.
The number of people renting homes in Spain has increased in the last decade with 22.2% of the population renting, and of these, 69.8% are from 26 to 35 year olds. This inevitably shows that the rental market in Spain works differently to the sales market. As the market crashed and sales decreased, the rental market picked up as locals tried to find somewhere to live.

Now, as the sales market is accelerating and jobs are more available, people are trying to buy and sell 
property again as opposed to renting it which is likely to lead to a lack of supply and prices to increase for rentals in the future.
13th Sep 2018

More from Fine & Country

Fine & Country opens new location in Majorca
The world renowned luxury real estate company has now opened in Majorca and is bringing its tailor-made property marketing concepts to the I...
29th Jul 2021
2020 Real Estate Market Previsions
After a 5% rise in 2019, experts predict that by 2020 the properties will continue to become more expensive, but at a s...
16th Jan 2020



Selling your home is one of the most important decisions you make; your home is both a financial and emotional investment. Find out how we can help »



Our consistent efforts to offer innovative marketing combined with a high level of service have been recognised by the industry for an astounding fifth year in a row, winning Best International Real Estate Agency Marketing at the International Residential Property Awards.


Every Fine & Country agent is a highly proficient and professional independent estate agent, operating to strict codes of conduct and dedicated to you. They will assist, advise and inform you through each stage of the property transaction.


With offices in over 300 locations worldwide we combine the widespread exposure of the international marketplace with national marketing campaigns and local expertise and knowledge of carefully selected independent property professionals.


People buy as much into lifestyle of a property and its location as they do the bricks and mortar. We utilize sophisticated, intelligent and creative marketing that provides the type of information buyers would never normally see with other agents.


Access the lucrative London and international investor market from our prestigious Park Lane showrooms at 121 Park Lane, Mayfair. Our showrooms in London are amongst the very best placed in Europe, attracting clients from all over the world.

Our International Network

Connecting offices on over 300 locations worldwide, our referral system combines local knowledge and expertise with an international network to find the right buyer for you wherever they are, at the same time as finding you your ideal next move

Our International Websites

United KingdomFranceHungaryCyprusGermanySpainPortugalMauritiusHong KongThailandNamibiaNigeriaSouth AfricaAustraliaFloridaZimbabwe


We interact with customers on the main social media channels including Facebook, Twitter, YouTube, LinkedIn, Pinterest and Google+, giving each property maximum online exposure.


Media Centre

MEDIA CENTRE Our internal Media Centre is a team of experienced press relations managers and copy writers dedicated to liaising with newspapers, magazines and other media outlets to gain extensive coverage for our properties in national and local media.


Fine & Country Foreign Exchange

We have partnered with IFX, one of the world’s leading foreign exchange specialists to provide private and tailored currency services for all of our clients buying and selling luxury property around the world. Find out how we can help »