Renting a home in Spain in 2025 is becoming a tougher challenge for many. The rental market has been experiencing rapid price increases and a shortage of available properties, creating a highly competitive environment. According to the latest report by pisos.com, the average price for renting in Spain has risen by 7.72% in the first quarter of 2025, reaching €13.12 per square meter by March. Over the past year, this increase has added up to a 14.69% jump, making the hunt for a rental even more difficult.

In this article, we’ll explore why the rental market is becoming more challenging, where prices are rising the most, and, most importantly, how you can manage the market with practical tips and strategies.

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Where Rental Prices Are Rising the Fastest

As demand continues to exceed supply, certain areas of Spain have seen rental prices rise dramatically. Madrid remains the most expensive city for renting, with average rents of €19.50 per square meter, followed closely by Barcelona at €19.39 per square meter. The Balearic Islands and Cataluña are also some of the priciest regions, with average rents hovering around €18.74/m² and €15.51/m², respectively.

These regions have long been popular with both locals and internationals, but the steady rise in rents has made it increasingly difficult for renters, especially those with lower budgets. The demand for rental properties in Madrid and Barcelona is so high that many available apartments are being rented within hours of being listed, leaving would-be tenants scrambling to secure a place.

However, not all of Spain is seeing these sky-high prices. In fact, there are still places where you can find more affordable rentals, especially in smaller towns and less tourist-heavy areas. For example, provinces like Ourense (€3.44/m²), Ávila (€3.61/m²), and Soria (€3.80/m²) offer much lower prices. These areas may not have the same exciting cultural scene or nightlife, but they can be great options for digital nomads or retirees looking for a more peaceful, budget-friendly lifestyle.

Interestingly, even within the larger cities, some neighborhoods have more affordable rents. In cities like Sevilla or Valencia, you may find lower rents compared to the city centers. Expanding your search beyond the main tourist areas can uncover hidden gems with more reasonable prices.

Tips for House-Hunting in Spain’s Fast-Paced Market

The rental market in Spain is not only becoming more expensive, but it’s also incredibly fast-paced. It’s not uncommon for properties in high-demand areas to be rented out within a matter of hours, which makes timing crucial. Here are some tips to help you navigate the rental market effectively:

1. Set Alerts and Stay on Top of Listings

The key to finding a rental in a competitive market is speed. Many renters miss out simply because they’re too slow to respond to new listings. To avoid this, set up alerts on rental platforms such as pisos.com, Idealista, and Fotocasa. These alerts will notify you as soon as a new property that matches your criteria is posted, allowing you to act quickly.

2. Work with Trusted Real Estate Agents

In Spain, many renters work with respected property experts and real estate agents to help them find a home. While this may come with a fee (typically one month’s rent), agents have access to listings that might not yet be published online and can often help you secure a rental faster. Make sure you choose an agent who specializes in the area you’re looking to rent in, as they will have a better understanding of the local market.

3. Have Your Documents Ready

To increase your chances of being accepted for a rental, make sure you have all the necessary paperwork prepared ahead of time. Landlords often ask for:

• Proof of income (pay slips, tax returns, or bank statements)
• References from previous landlords
• A copy of your passport or ID card
• Proof of employment or contract (for digital nomads, a remote work contract is often sufficient but some landlords state that you must work for a Spanish company so keep this in mind). Having these documents ready when you view a property will allow you to act quickly and demonstrate that you’re a serious candidate.

4. Understand the Local Timing

In cities like Madrid and Barcelona, the rental market often moves faster during certain months of the year, particularly in late spring and early summer. These are typically when university students and seasonal workers are looking for places, creating extra competition. However, autumn and winter months might offer more availability as fewer people are hunting for new homes, and landlords are often more willing to negotiate.

Consider Co-Living or Renting in Smaller Towns

With rising rental costs in Spain’s major cities, many internationals and digital nomads are exploring alternative housing options like co-living spaces or renting in smaller towns. Co-living has become increasingly popular among young professionals and digital nomads due to its affordability and the sense of community it offers. These shared living spaces provide not only a place to stay but also opportunities for socializing and networking, which can be invaluable for people new to Spain.

Co-Living Spaces

Co-living spaces usually come fully furnished and include all utilities in the rent, so you don’t have to worry about additional costs. They are often located in great neighborhoods where you can meet other like-minded individuals, making it an ideal choice for remote workers and digital nomads. Additionally, many co-living spaces offer flexible lease terms, which is a huge benefit if you’re not sure how long you’ll be staying in one place.

Renting in Smaller Towns

Another option to beat the rising rents in major cities is to look for a place in smaller towns or rural areas. Regions such as Castilla y León, La Rioja, and Extremadura have significantly lower rents while still providing a comfortable and peaceful lifestyle. These areas are increasingly attracting digital nomads and retirees who don’t need to be located in the heart of a major city to work remotely. While these towns might not offer the same level of urban excitement, they provide excellent value for money, a slower pace of life, and easy access to beautiful natural surroundings.

If you’re planning to move to Spain or are already here and struggling to find a place to rent, understanding the current rental landscape is key. With rents rising and supply shrinking, being proactive, flexible, and prepared will give you the best chance of securing a home that fits your needs.

Whether you’re considering co-living, moving to a quieter town, or negotiating the ins and outs of a Spanish rental contract, these steps will help you manage the process with confidence.

Main image: Shutterstock/JJFarq