Rent prices in Spain will experience a notable increase in 2023, leaving many people wondering: Is finding an affordable rental in Spain a pipe dream?
In 2023, residential rental prices in Spain rose by 5.7%, raising the average monthly cost to 11.66 euros per square meter. As a result, an 80 square meter apartment requires an average monthly expenditure of 932 euros. However, affordable alternatives are available in certain areas.
The quest for affordable living
The study entitled “Rental Housing in Spain 2023”, derived from the Fotocasa Real Estate Index, focuses on the 10 most economical municipalities of Castilla-La Mancha, Extremadura, Galicia, the Community of Valencia and Castilla y León. was identified. These findings offer a glimmer of hope for budget-conscious renters.
Top picks for economical rentals
Puertollano in Ciudad Real, Castilla-La Mancha, has emerged as the most cost-effective area, with rents averaging €5.01 per square meter per month, equivalent to just over €400 for an 80 square meter apartment.
This is followed by Don Benito in Badajoz, Extremadura, offering housing for 5.34 euros per square meter, or about 427 euros per month.
Placencia, located in Caceres, Extremadura, is in third place, with an average rent of 5.69 euros per square meter, equivalent to 455 euros per month for an apartment of the same size.
Despite affordability, rental prices in these municipalities remain well below the national average, although they are expected to peak in 2023.
Look at the big picture
Maria Matos, Fotocasa’s research director, said: “Most of the municipalities with affordable rents are in Spain’s sparsely populated regions of Extremadura, Castile-La Mancha, or Castilla and León. within the community.”
It corresponds to areas where interest in rentals is low and supply and demand are relatively balanced. In general, these areas are not large population attraction areas, but in line with the upward trend in rental prices at the national level and the possible transfer of demand from metropolitan centers to regional cities, significant price increases have occurred. There are some areas where you can see it. Head to the suburbs for more affordable rentals.
This insight highlights the changing dynamics within the Spanish rental market, with peripheral areas gaining prominence as a cost-effective alternative to city centres.
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