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RENTING

Where are the cheapest places in Spain to rent a two-bedroom flat in 2022?

How much does it cost on average to rent a two-bedroom home in each of Spain’s 50 provincial capitals? What are the cheapest and most expensive cities? And how much have rents gone up since inflation began to rise exponentially in Spain? 

Where are the cheapest places in Spain to rent a two-bedroom flat in 2022?
The cheapest coastal cities to rent a home in Spain are Huelva and Almería. Photo: Antonio Espa/Unsplash

Renting a two-bedroom apartment in Spain cost on average €690 a month in early 2022.

For those whose rental contracts are linked to Spain’s Consumer Price Index, the average rent for a normal Spanish home was €731 a month in April 2022, €41 more, as landlords can often increase rents in accordance with rising inflation.  

READ ALSO: Can my landlord in Spain really put up my rent due to rising inflation?

There are however huge differences in rental rates between Spain’s 50 provincial capitals, which can add up to thousands of euros a year. 

Spain’s leading property search portal Idealista has compiled data from Spain’s National Statistics Institute to show where tenants can expect to pay most or least for a two-bedroom home. 

The most expensive cities to rent in Spain are San Sebastián and Bilbao in the industrial Basque Country of northern Spain, where average rents are currently €901 a month. 

In third and fourth position are Barcelona and Madrid with €875 and €848 a month respectively.

Then Palma, the capital of the popular holiday island of Mallorca (€795 a month), the Basque capital of Vitoria (€774/month), Pamplona in Navarre (€689/month) and the eastern coastal city of Valencia (€689/month). 

Rents in cities popular with tourists such as Las Palmas de Gran Canaria, Alicante, Málaga and Cádiz have average rents for a two-bedroom home of between €640 to €580 a month. 

On the complete opposite side of the spectrum, there are very reasonable rents to be found in the provincial capitals of Spain’s interior, such as Teruel, Cuenca, Ciudad Real, Zamora, or Palencia, or in the green Galician cities of Ourense or Lugo in the northwest corner of Spain. 

In such cities, you can expect to pay from €425 to as little as €371 a month in rent, less than half the rate of big cities such as Madrid, Barcelona or Bilbao.

The cheapest coastal cities to rent a home in Spain are Almería and Huelva at an average €504 and €477 a month respectively. 

Below is Idealista’s breakdown of rent prices in Spain’s provincial capitals, showing the updated average rent in April 2022, the increase caused by the CPI rise and the average cost for renting a two-bedroom home in January 2022.

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MADRID

Madrid to suspend holiday-let licences as rent prices spiral

Madrid City Hall has announced it will temporarily suspend the granting of new licences for so-called tourist apartments in a bid to rein in a ballooning industry that's impacting prices and stock of long-term rents in Spain's capital.

Madrid to suspend holiday-let licences as rent prices spiral

Madrid authorities also announced they will not authorise the transformation of commercial properties into tourist accommodation in the centre of the city and will increase the fines for tourist properties that do not comply with regulations.

Madrid, like many other cities in Spain, has been suffering from a rise in illegal tourist accommodation with thousands swiftly popping up across the capital.

One of the main obstacles for regulators is how difficult it is to find out exactly how many there are. Madrid authorities have counted 14,699 tourist establishments in the city, 92 percent of which are for tourist accommodation. But, only 941 of these have a municipal licence, meaning the rest are illegal.

READ ALSO: Why Madrid is struggling with its explosion of illegal holiday lets

According to the Inside Airbnb platform though, there are 25,543 tourist apartments listed in the city.

In order to combat the issue,  Madrid City Hall will increase the amount of fines for owning and running one of these illegal holiday lets.

They will set the first penalty at €30,000, the second at €60,000 and the third level at €100,000. Those committing serious infringements or who keep renting out their flats without licences, even after warnings, may have to pay up to €190,000.

Current fines are only €1,000 for the first infringement. If they still don’t comply, a second fine of €2,000 is issued, and if the situation persists, a third penalty of €3,000 will be given.

The number of inspectors to check on tourist rentals will also be increased by 15 percent, up to 75.

In order to help holidaymakers know whether or not an apartment they’re interested in is legal or not, the city will also publish a list of flats with licences and their location on an official website.

“People who want to stay will know if they are in a legal or illegal accommodation and the consequences that may arise because of this” explained Mayor José Luis Martínez-Almeida.

In early 2019, former mayor Manuela Carmena approved a special Accommodation Plan to regulate tourist accommodation in the city. The new rule established among other requirements that tourist apartments should have an independent entrance from the rest of the neighbours.

According to her calculations, this would affect 95 percent of holiday lets in the city, essentially rendering them illegal. The rule was appealed by the sector, but the courts ended up agreeing with the City Council in 2021.

These rules were found to be insufficient as many holiday lets have continued to operate in the capital without a licence, and in late 2023 Martínez-Almeida promised to create new ones. 

Initial approval of the new plan is scheduled for September 2024 and final approval is expected to be in the first half of 2025. 

READ ALSO: Who really owns all the Airbnb-style lets in Spain?

The problem is not only the number of tourist rentals, but the issues they cause for residents. The Inspection and Disciplinary Service received 51 percent more complaints in 2023 than in 2022 that involved homes and apartments for tourist use: 686 compared to 454. 82 percent of which came from citizens.  

Of the total inspections carried out (4,093), it was verified that 478 homes were dedicated to tourist use and 243 were for residential use.

Not everyone is in agreement with the new plan. The Regional Federation of Neighbours of Madrid (FRAMV) believes Almeida’s plan is not enough and that the regulations should apply to the entire municipality not just the central areas.  

The spokesperson for Más Madrid in the City Council, Rita Maestre, has also spoken out against the plan. Maestre believes that the vast majority of tourist apartments already operate freely without a licence, and that the new legislation will do little to change that.

For Exceltur, Spain’s main tourism and hotelier association, there is not enough inspection capacity anywhere in Spain to be able to control that legislation is complied with.

Spain’s Housing Minister Isabel Rodríguez recently called on the 17 regional governments to implement restrictions on short-term holiday lets in areas where rents for locals have spiked, as the national government continues to look for ways to address the country’s housing crisis.

“Wherever there is a greater concentration of apartments for tourists, there is also pressure in the property market ,” Rodríguez said.

Even Madrid’s populist regional president Isabel Díaz Ayuso, whose policies are usually in favour of “freedom” and liberalisation, has said that they “are studying how to regulate holiday accommodation so that higher prices do not expel neighbours”.

Average monthly rent prices in Madrid currently stand at €20.7 per square metre, after registering an increase of 18.2 percent over the last twelve months and 4.8 percent in a quarter-on-quarter rate.

“Vacation rentals are having an impact on the market, especially in the historic centres of cities,” Madrid’s general director of Housing and Rehabilitation of the Community María José Piccio-Marchetti Prado, told Business Insider Spain.

“In Madrid you see it around Puerta del Sol, Plaza Mayor… where there are many tourist homes”.

READ ALSO: Which cities in Spain have new restrictions on tourist rentals?

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