The average cost of long-term rental housing in Spain reached a record high in April 2026, rising to €15 per square metre per month, according to data from property platform Idealista.
Analysts said rental prices increased by 5.2% compared with the previous year. Although prices continue to rise, the pace of growth has become the slowest since the summer of 2022, signalling a gradual cooling after several years of sharp increases.
Demand Continues To Outpace Supply
Despite slower annual growth, Spain’s rental market remains under significant pressure due to a persistent imbalance between supply and demand.
Large cities, tourist regions and university centres continue to experience strong rental demand from local residents, international workers, students, digital nomads and short-term rental activity.
At the same time, new housing supply is entering the market slowly, while many property owners continue to prioritise tourist rentals over long-term leases.
Major Cities Face Growing Affordability Problems
The affordability crisis remains particularly severe in Madrid, Barcelona, Valencia, Malaga and on the Balearic and Canary Islands, where housing demand is driven by both domestic migration and foreign residents.
Idealista noted that although rental growth has slowed, the market is still operating at historically elevated price levels after years of double-digit increases.
Migration Remains A Key Driver
Migration continues to play a major role in shaping Spain’s housing market.
According to Spain’s National Statistics Institute (INE), the largest foreign communities in the country as of 1 January 2025 were citizens of Morocco with 968,999 residents, followed by Colombia with 676,534 and Romania with 609,270.
Large communities from Venezuela, Italy, China, Peru, the United Kingdom and Ukraine also continue to contribute to housing demand across Spain.
In 2024, the number of Colombian citizens in Spain increased by 98,057 people, while the Venezuelan population rose by 52,555 and the Moroccan population by 48,306.
By contrast, the number of Ukrainian citizens officially registered in Spain declined by 7,907 people, which analysts suggest may reflect changes in residency status, relocation to other countries or naturalisation.
Foreign Buyers Continue To Push Prices Higher
Investment demand is also adding pressure to Spain’s property market.
According to recent housing market data, foreign non-resident buyers paid an average of €3,242 per square metre for property in the second half of 2025. Foreign residents paid around €1,963 per square metre, compared with €1,839 for Spanish citizens.
Analysts say many investment purchases are aimed at the rental market, further intensifying competition for available housing.
No Rapid Relief Expected
Experts say Spain now faces a structural housing challenge in which slowing price growth does not necessarily indicate falling costs.
Instead, the moderation in annual growth suggests the market may be shifting from a period of rapid escalation to one of persistently high rental prices, with limited signs of meaningful relief for tenants in the near future.
