Rent prices in Spain rose by 1.4 percent in 2020, which may not seem like great news, but it was actually the first time in five years that rates had almost stagnated.
The average price per square metre across Spain currently stands at €11.1/per month.
However, in the most dynamic markets – Spain’s biggest cities and those popular with foreign visitors – the virtual disappearance of short-term rentals has doubled the number of rental properties available and driven down prices, especially in neighbourhoods where rents had ballooned in recent years due to the barrios’ popularity.
Spanish property experts Idealista recently published their rental price evolution report, which sheds light on what’s happening to rent in the main neighbourhoods of six of Spain’s biggest cities: Madrid, Barcelona, Valencia, Malaga, Seville and Palma.
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The average rental price in Madrid fell by 7.3 percent throughout 2020. As of late January 2021 it stood at €15 per square meter per month.
The districts in which the rent has dropped the most are also the Spanish capital’s most expensive:
Centro: down 11 percent
Salamanca: down 10 percent
Arganzuela: down 9 percent
Chamberí: down 8.8 percent
Retiro: down 8.6 percent
Of the 21 districts that make up Madrid, the price has only increased in Villa de Vallecas, by only 1 percent. Currently the cheapest Madrid district is Vicálvaro , which costs €10.2 per square meter per month.
Madrid’s upmarket Salamanca District. Photo: ccsmith85/Flickr
Barcelona, which had seen rents skyrocket in recent years, is no longer the Spanish city where it’s most expensive to rent. Rents have fallen by 9.4 percent, and now the average price is €14.9 per square meter per month, slightly below Madrid.
The districts in which the price has been reduced the most are the following:
Ciutat Vella: down 16.7 percent
Eixample: down 11.6 percent
Les Corts: down 11.2 percent
Sant Martí: down 8.8 percent
Sants-Montjuic: down 7.1 percent
Nou Barris is still the cheapest neighborhood in Barcelona to rent in (€12 per square meter per month) and rent actually dropped by a further 5.6 percent in 2020.
Ciutat Vella district in Barcelona. Photo: Jorge Franganillo/Flickr
In Valencia city, rents fell on average by 1.7 percent during the course of 2020, meaning the average rental price is €8.90 per month per square metre.
These are the city districts in which the price drop has been most noticed:
L’Olivereta: down 9.2 percent
Benimaclet: down 8 percent
L’Eixample: down 7.2 percent
The cheapest neighbourhoods in which to rent in Valencia are currently L’Olivereta, Patraix and Jesús , where it costs €7.5 per square metre per month.
Benimaclet district in Valencia in pre-Covid times. Photo: Luis Herram/Flickr
The coastal city in Spain’s southern Andalusia region has seen rents drop by 5.6 percent on average. Currently, the average rent in Malaga is €9.8 per square metre per month.
The Malaga neighbourhoods where rents have dropped most are:
Bailén-Miraflores: down 14.8 percent
Ciudad Jardín: down 11.3 percent
Teatinos: down 8.1 percent
Cruz de Humilladero: down 8.1 percent
The most affordable district to rent in Malaga also happens to be one of the ones with the biggest price drop – Ciudad Jardín – where renting an apartment costs €8 per square metre per month.
An aerial view of Malaga. Photo: Pixabay
In the Majorcan capital prices have slumped by 6.2 percent, which means the average monthly rent now stands at €11.2 per square metre.
The Palma neigbourhoods with the largest price drops are:
Rafal-Son Forteza: down 12.7 percent
La Vileta-Son Rapinya : down 10.4 percent
Es Forti-Son Cotoner-Son Dameto: down 8.9 percent
Playa de Palma: down 8.2 percent
The most affordable district is Son Ferriol-Sant Jordi, where it costs €8.5 per square metre per month.
Playa de Palma district in the Majorcan Capital offers sea views. Photo: Wikipedia
In Seville, the coronavirus crisis has dragged rents down by 5.2 percent, which means that the average price per square metre in the Andalusian capital is €10 per month.
These are the Seville districts with the largest rent drops:
Centro: down 10.4 percent
Macarena: down 8.3 percent
Los Remedios: down 8 percent
Bellavista-Jardines de Hércules: down 8 percent
Despite the large drop in prices in Seville’s city centre, it’s still by far the most expensive neighbourhood for tenants at €10.4 per month per square metre.
The cheapest area is Pino Montano, where tenants pay on average €6.9 per month per square metre.
The neighbourhood of Macarena in Seville. Photo: Gzzz/Wikipedia