The rental market in Spain is showing price increases that mirror the peak levels seen in 2022, with a notable acceleration through the summer months. The latest analysis of maximum rental prices by Idealista, a leading real estate services platform, confirms Valencia as a key player in this upward trend. The Valencian Community now reports some of the highest price points in the country, with the state of Valencia reaching 9.98 euros per square meter in July, its highest monthly figure on record. Alicante follows closely with a peak of 8.68 euros, while Castellón set a record at 6.77 euros in April and remained around 6.72 euros. These figures illustrate a broad surge across major urban centers in the region.
Across Spain, average rent figures reflect a robust rise. The national average stands at 11.3 euros per square meter, accompanied by an annual increase of 5.6 percent in July. This marks the strongest year-over-year rise observed so far and represents a standout moment in the post Covid era. Month over month, prices increased by 0.7 percent from June, and on a quarterly basis, the countrywide rise averages 3.8 percent, underscoring sustained momentum in the rental market.
In terms of geographic spread, rents have hit record highs in more than half of the country so far this year. In July, 12 capitals, including Valencia, Alicante, Malaga and Santander, reached their maximum rental levels. In addition, 23 other cities reached or exceeded those peak levels during the first period of the year, signaling broad geographic breadth to the price increases and not just localized pockets.
Data from Idealista also shows that only 15 capital cities remain below the maximums set during prior crises. The rental peaks seen in Oviedo and Ciudad Real hold at levels from 2010, while in many other locations the records were established between 2021 and 2020, indicating a mixture of enduring high demand and shifting supply dynamics across the country.
Looking at the broader market, Barcelona continues to be the most expensive market for rental apartments in Spain, averaging 17.4 euros per square meter. Madrid follows with 15.9 euros, then San Sebastián at 15.5 euros, Bilbao at 12.6 euros, and Palma rounding out the top tier at 12.1 euros. On the opposite end of the spectrum, Zamora stands out as the most affordable capital, with rents around 5.7 euros per square meter, while Ourense and Ciudad Real show values of about 5.9 euros in each case, highlighting the notable regional disparities within the Iberian market.
The housing mortgage market in Spain also reveals a cooling trend in June. Compared with May, the signing of housing contracts decreased by 5.7 percent, according to data released by the National Institute of Statistics. In June, the total number of new housing contracts stood at 5,040, the fourth highest reading for the autonomous communities. Madrid reported 8,026, Andalusia 7,916, and Catalonia 6,905, illustrating the varied pace of activity across different regions. Valencia, however, recorded a 23.3 percent year-over-year increase compared with June 2021, indicating a continued interest and resilience in the regional market despite a broader slowdown in the national pace. This mix of rising rents and evolving mortgage activity provides a nuanced picture for investors and tenants alike, with regional patterns suggesting both opportunities and potential constraints depending on location and timing.