Spain rental market faces rising prices and high competition

The rental housing market in Spain is experiencing significant tension due to a shortage of long-term supply and high demand. In Cangas, Galicia, the average monthly rent for a standard 80-square-meter home has reached 876 euros. This makes Cangas one of the most expensive rental locations in the region, surpassing cities such as Santiago de Compostela, Pontevedra, and Lugo. The scarcity of options is attributed to limited new construction and the rise of vacation rentals.

In the Comunitat Valenciana, competition for available properties is intense. Reports indicate that up to 101 people compete for every single rental property during the first ten days it is on the market. In cities like Valencia and Alicante, a phenomenon known as ‘express renting’ has emerged, where 14% and 10% of properties, respectively, are leased in less than 24 hours. Average prices in the Valencian Community are approximately 13.2 euros per square meter, with Valencia city leading at 16.3 euros per square meter.