The Rental Squeeze: Rising Demand and Declining Supply

It’s no surprise that Málaga is facing unsustainable rental demand. According to the latest rental barometer, each rental listing in the city receives an average of 71 expressions of interest, making competition fierce for prospective tenants.

Seville leads Andalucía with 73 interested parties per property, further highlighting the region’s imbalance between supply and demand. With an average rental price of €1,077 per month, Málaga has the highest rental costs in Andalucía, followed by Seville at €915.

While these figures exceed the regional average of €912, other provinces such as Jaén (€540) remain far more affordable. Despite Málaga’s high demand, rental supply has remained nearly unchanged, with 48,026 rental properties listed in 2024—a 0.6% decrease from the previous year. In contrast, Seville experienced an 11% drop in rental availability, further intensifying competition.

 

The National Rental Crisis: Pressure Zones and Skyrocketing Demand

Spain’s rental market struggles aren’t confined to Andalucía. In Barcelona, demand has exploded, with interest per rental property soaring from 81 in 2023 to 421 in 2024—an astonishing increase of 340 inquiries per listing. The Basque Country is also facing similar challenges, with Vizcaya seeing a rise from 43 to 191 interested parties per property in just one year. Since the COVID-19 pandemic, Spain has seen a consistent drop in rental housing supply. In 2024 alone, 96,512 fewer properties entered the market compared to the previous year, marking an 11.9% decrease. Over the past five years, supply has shrunk by 27%, with Barcelona experiencing the most significant reduction (-75,548 properties) due to strict rent control policies.  
 

Spain’s Most Expensive Rental Markets

Rental costs continue to climb across Spain. In 2024, the national average rent hit €1,118 per month, up 11.3% from 2023. Barcelona (€1,604) remains the most expensive province, followed closely by the Balearic Islands (€1,598) and Madrid (€1,495). Málaga also features among Spain’s priciest cities, with an average rent of €1,191 per month. While major cities struggle with affordability, some provinces remain budget-friendly. Jaén (€540), Zamora (€520), and Ciudad Real (€496) have some of the lowest average rents in Spain, making them attractive for those seeking more affordable living options.

Summary:

• Málaga and Seville have the highest rental demand in Andalucía, with 71 and 73 inquiries per property, respectively.
• Rental supply is stagnating or decreasing, worsening the housing crisis.
• The average rent in Málaga (€1,077) is the highest in Andalucía, while Jaén (€540) is the most affordable.
• National rental supply has plummeted by 27% over the last five years, exacerbating affordability challenges.
• The most expensive rental markets are Barcelona (€1,604), the Balearic Islands (€1,598), and Madrid (€1,495).

The Spanish rental market is under immense pressure, with demand outpacing supply and prices reaching record highs. Policymakers must urgently address these challenges to prevent further housing instability.