The rental market in Spain has experienced a significant increase in recent years, placing some autonomous communities among the most expensive in the country. According to the most recent data, the Balearic Islands, Madrid and Catalonia lead the list of regions with the highest prices, reflecting the pressure of growing demand and limited supply.
Rent prices in Balearic Islands
The Balearic Islands ranks third in the national ranking with an average rental price of 17.6 euros per square meter in November 2024, according to data from Idealista. This increase represents a year-on-year increase of 9.8%, evidencing the stress in the region’s real estate market. Municipalities such as Ibiza stand out for far exceeding this figure, ranking among the places with the most expensive rents in the country. In addition, Balearic residents face one of the highest economic burdens, spending about 39.3% of their income on rent, well above the 35% recommended by the Bank of Spain. This scenario reflects a difficult reality for many residents, especially in a context where housing supply is limited and demand continues to grow.
What drives prices in the Balearics?
The high cost of renting in the Balearic Islands responds to several factors specific to the region. Insularity plays a key role in limiting the capacity for urban expansion, which restricts the supply of housing. In addition, the strong dependence on tourism generates a high demand for both holiday and residential rentals, competing directly with the needs of local residents.
Furthermore, the attractiveness of the Balearic Islands as a destination for international workers and high net worth residents adds additional pressure to the market. Regulatory policies to limit the impact of tourist rentals have had a moderate effect, but have not been sufficient to stabilize prices in the residential market.
Rental prices by autonomous community
The nationwide analysis reveals that the Community of Madrid leads the ranking with an average price of 18.2 euros per square meter, followed by Catalonia with 17.8 euros per square meter. These two communities reflect a sustained behavior of high prices, particularly in the capital cities, where rents in Madrid and Barcelona easily exceed 20 euros per square meter in central areas.
On the other hand, the Balearic Islands is positioned as the most expensive island region, driven mainly by its tourist attraction and the high demand for short and long term housing. The Basque Country and the Canary Islands follow with average prices of 14.2 and 14 euros per square meter, respectively. These regions also face significant demand, although not at the level of the first three positions. In contrast, autonomous communities such as Andalusia and the Valencian Community offer more moderate prices, with averages of around 11 euros per square meter. However, within these communities there are large differences, with coastal provinces and provincial capitals showing higher prices than rural areas.
