Spain’s most affordable rental hotspots

Rents in Spain witnessed a notable price hike in 2023, leading many to ask the question: Is finding an affordable rental in Spain a pipe dream?

In 2023, the price of renting a home in Spain saw a 5.7 per cent increase pushing the average cost to €11.66  per square metre each month. Consequently, an 80 square metre flat now demands an average outlay of €932  monthly. Yet, certain areas offer an affordable alternative.

The quest for affordable living

A study titled ‘Housing for rent in Spain in 2023’, derived from the Fotocasa Real Estate Index, pinpointed the ten most economical municipalities across Castilla-La Mancha, Extremadura, Galicia, the Valencian Community, and Castilla y Leon. These findings offer a glimmer of hope for budget-conscious renters.

Top picks for economical renting

Puertollano in Ciudad Real, Castilla-La Mancha, emerges as the most cost-effective area, with rents averaging €5.01 per square metre monthly, translating to just over €400 euros for an 80 square metre apartment.

Don Benito in Badajoz, Extremadura, follows, offering homes at €5.34 per square metre or approximately €427 monthly.

Plasencia, located in Caceres, Extremadura, ranks third with an average rent of €5.69 per square metre, equating to €455 euros monthly for the same-sized flat.

Despite their affordability, these municipalities have seen rental prices peak in 2023, yet they remain significantly below the national average.

A look at the bigger picture

Maria Matos, Director of Studies at Fotocasa, comments, ‘A good part of the municipalities that have an affordable rental price are found in depopulated Spain, within the communities of Extremadura, Castilla-La Mancha or Castilla y Leon.

They respond to areas with low interest in renting and with a relative balance between supply and demand. In general, these localities are not large population attractors, although in several of them notable increases in the price are detected in line with the trend of rising rental prices at the national level and a possible transfer of demand, from the large urban centers to the periphery, in search of more affordable rentals.’

This insight highlights the shifting dynamics within Spain’s rental market, with peripheral areas gaining traction as cost-effective alternatives to urban centres.