Rental prices in Spain decreased by 4.2% year-on-year in November 2021

Rental prices in Spain decreased by 4.2% year-on-year in November 2021

The cost of housing rentals in Spain decreased by 4.2% year-on-year, reaching 10.19 euros/m² per month in November 2021, although it increased by 1% compared to the previous month, according to the Fotocasa real estate index.

This marks the tenth consecutive year-on-year decline starting from February 2021.

Market Analysis

María Matos, director of the analytical department at Fotocasa, explained the reasons for the decline: “The downward trend in rental prices is a direct consequence of market transformation under the impact of the pandemic, when rental demand decreased by several percent.”

She noted demographic shifts: citizens over 35 years old became less frequent participants in the rental market, while demand migrated from city centers to peripheral areas.

Trend Divergence

Madrid and Barcelona, which for more than a year demonstrated similar price dynamics, began to diverge. Madrid continued its decline, while Barcelona showed notable growth.

Rental Price Rankings in Spanish Provincial Capitals

Among the 40 analyzed provincial capitals, price decreases were recorded in only eight: Ourense (-5.6%), Pamplona (-3.7%), Madrid (-3.5%), Granada (-1.9%), Ávila (-1.6%), Salamanca (-0.5%), Castellón de la Plana (-0.4%), and Bilbao (-0.2%).

The highest growth was noted in Cádiz (15.2%), Almería (8.5%), San Sebastián (6.8%), Palencia (6.2%), and Valencia (5.3%).

The most expensive rental markets: San Sebastián (16.94 euros/m²), Barcelona (16.45 euros/m²), and Madrid (14.68 euros/m²).