Historic Rental Price Drops in Madrid and Catalonia
According to July data from the Fotocasa Real Estate Index, Spain’s two most expensive rental regions have cooled down significantly. Housing rent in the autonomous community of Catalonia fell by 16.3% year-on-year, marking the largest annual drop since the index began. It was followed by the Community of Madrid, where rental prices decreased by 12.2% month-on-month and 10.6% year-on-year in July, the second-largest annual decline for the region since April 2021. After the adjustment, the average rent in the Community of Madrid dropped to €19.27 per square meter per month.
Significant Market Disparities Within the Community of Madrid
Rental trends across municipalities within the Community of Madrid show vast differences. Among the 11 municipalities with year-on-year data, six saw rent increases against the trend. Fuenlabrada led with an 8.5% rise, followed by Móstoles (+5.3%), Alcorcón (+3.8%), San Sebastián de los Reyes (+3.5%), Moraleja (+1.5%), and Las Rozas (+0.1%).
Meanwhile, rents in some municipalities have plummeted over the past year. The most staggering drop was in Alcalá, with a 55% year-on-year decrease. Other municipalities with significant declines include Getafe (-11.2%), Madrid (capital) (-10.7%), Leganés (-8.5%), and Pozuelo (-5.7%).
Madrid Municipalities Rental Price Ranking
In terms of absolute rental prices, the most expensive municipalities in the Community of Madrid are, in order: Moraleja (€21.66/sqm), San Sebastián de los Reyes (€20.65/sqm), and Madrid (capital) (€19.95/sqm). Pozuelo (€18.66/sqm) and Villanueva de la Cañada (€18.24/sqm) are also among the high-priced areas.
On the other hand, the municipalities with the lowest rent levels include Mostoles (€15.38/sqm), Tres Cantos (€14.70/sqm), and Colmenar Viejo (€14.00/sqm). According to the data, Alcalá (€5.91/sqm) and Leganés (€3.71/sqm) have the lowest average rents in the region, consistent with their significant year-on-year decreases.
National Rental Market Overview: Most Regions Still Seeing Increases
Nationwide, the decline in rent is not a widespread phenomenon. Only three autonomous communities saw a year-on-year decrease: Catalonia (-16.3%), Madrid (-10.6%), and the Basque Country (-0.1%), which also happen to be the three most expensive rental areas in Spain.
The vast majority of other autonomous communities are still experiencing rent increases. The regions with the highest hikes include Aragon (+13.3%), Castilla-La Mancha (+11.7%), Navarre (+8.6%), and Extremadura (+8.3%). Popular regions like Valencia (+6.2%) and Andalusia (+4.4%) also maintained their growth.
In the national rental rankings, the Community of Madrid leads with a price of €19.27/sqm, followed by the Balearic Islands (€19/sqm), Catalonia (€17/sqm), and the Basque Country (€17/sqm). The most affordable regions are Castilla-La Mancha (€9.14/sqm) and Extremadura (€7.87/sqm).
