While the new housing law is about to be passed in the Parliament, the situation in the rental market is, to put it mildly, alarming, with rental property stock decreasing by 28% in the country and more than 50% in some areas over the last four years.
According to a study published by Idealista, Spain’s leading real estate marketplace, the supply of rental homes in Spain has fallen by 28% in the last four years when comparing stock data from the first quarter of 2019 to that of the same period in 2023.
This shift in available stock is most visible in provincial capitals. Cuenca’s property stock has been reduced the most in the last four years, by 59%. Cuenca is closely followed by Barcelona, which has roughly half the available properties compared to four years ago (-51%). Property stock has decreased dramatically in Pontevedra (-48%), Valencia (-45%), Madrid (-44%), Ceuta (-41%), Ciudad Real, and Guadalajara (-39% in both cases).
San Sebastián (-35%), Alicante (-33%), Málaga (-33%), Seville (-28%), and Bilbao (-24%) are also among the most sought-after markets.
However, this is not a general trend. There are cities where there are more properties available today than there were four years ago. In Castellón de la Plana, for example, there has been no decrease in property stock, and in 10 other capitals, the offer has increased during this period. The greatest increases have occurred in Huesca (122%) and Córdoba (101%), which have more than doubled their property stock. Palencia is followed by Jaén (56%), Teruel (34%), Valladolid (21%), Salamanca (8%), Pamplona (6%), and Lugo (2%).
When we look at the communities, the picture is a little different, demonstrating that the desire to live in big cities is still prevalent in Spain. Madrid and Catalonia both experienced a 41% drop across the province, followed by Cantabria (31%), Galicia (-29%), Castilla-La Mancha (-25%), and Euskadi (-25%). Canary Islands (-22%), Comunitat Valenciana (-21%), and Extremadura (-20%) also saw decreases.
The Balearic Islands (-16%), Murcia (-15%), Andalusia (-13%), and Asturias (-12%) fare slightly better. Single-digit decreases are recorded in La Rioja (-8%), Aragón (-7%), Castilla y León, and Navarra (the communities with the smallest decreases, only 3%).
Long-term rental increases are guaranteed by documented figures. Regardless of the new Housing Law, the fact that there are not enough properties on the market, and the property stock continues to fall, will mean that it will become increasingly difficult to find suitable rentals in the major Spanish cities, and people will be forced to relocate further away from the centres.
This trend is already visible in Valencia, where the city is dealing with additional issues such as a large influx of foreigners, slow issuance of building permits, and a lack of available land to build on. And this is reflected in the available property stock: there are only 1.800 apartments for rent in the entire city, with prices starting at 650 Euros per month in less desirable areas.
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.