From time to time, BDT devotes itself to taking the pulse of the Spanish society and finding out what keeps it up at night. He also publishes a list from time to time, which often repeats the same topics with some changes. Just like a mantra. For example, immigration, politics, unemployment, economy… and housing, which were in second place in the rankings a few months ago. This is understandable.

Within a few years its price rose rapidly in both the purchase and rental markets. In fact, some of the largest increases in urban rents in Europe have been recorded in certain cities of the country. This is also reflected in the latest HousingAnywhere report. And quite clearly.

Madrid in the top 3. Rapidly increasing rents in Spain is nothing new, especially in large metropolises where demand is more tense. This does not mean that we continue to point out studies that measure the increase with concrete data from time to time. This is the case with the latest price index of the rental platform HousingAnywhere, which has made an interesting exercise especially due to the image it leaves on the Madrid market.

Its technicians analyzed 88,823 properties rented in recent months; These include three-bedroom apartments, studios and individually rented rooms. They also expanded the analysis to 28 European cities in 12 countries. What did they discover? Madrid recorded one of the largest price increases of all cities studied. At least in the company’s latest report for the third quarter of 2024, this figure is surpassed only by two other European metropolises, Rome and The Hague in the Netherlands.

What do the numbers say? Furnished apartment rents in Madrid increased by 17% last year. While an average of 1,370 euros was paid in the third quarter of 2023, this figure increased to 1,603 euros in the same period this year. You don’t even need to look back 12 months ago. Between the second and third quarters alone, the amount of income of the capital increased by 100 euros. If we talk about studies, the increase is even higher, 18.2%.

Seen in perspective. Madrid does not have the highest prices among major European cities, and in fact there are some where rents are much more expensive, such as Amsterdam, Berlin, Munich, Rome, Rotterdam or neighboring Lisbon and Paris; However, Madrid stands out for how much apartment rents have increased in the last few months.

This 17% increase was surpassed only by other urban cities analyzed by HousingAnywhere. One of these is The Hague, with an increase of 21.9%. The other Rome took the cake with an increase of 28.2 percent. The increase in the cost of renting a studio has also been greater in Madrid than in most European cities.

Is there more data? Yes, they also show you how much you paid on average for an apartment. In this case, Madrid drops a few places in the European rankings. The 1,603 euros homeowners asked for on average last quarter may be much more than they asked for a year ago, but it is well below what is required in other major cities. And you don’t have to go far.

Although the average rent for an apartment in Lisbon is 1,792 euros, prices have fallen by 10.4%. Although the average is 2,490 in Amsterdam, 1,798 in Bologna, 1,800 in Milan and 1,908 in Paris, this value has not changed much in the last year. The report also presents data from Barcelona, ​​which shows better results, at least for tenants. The average rent for an apartment here will be 1,600 euros; This represents an annual increase of 6.7%, less than half that of Madrid. In Valencia, where the index is 1,450 euros, the increase was 3.6 percent.

(Very) above average. The price increase in Madrid exceeds that found in Europe as a whole, where HousingAnywehre found a 4.1% increase in the third quarter. This percentage partly explains why there are countries that are seeing their rents soften. While the platform’s study is interesting as it provides an updated “photograph” of the European market, it is by no means the only study reflecting the rise in prices.

A similar reading is made by Eurostat’s rent data, whose 2023 report acknowledges a “continuous upward trend” since 2013 and an 18% increase in EU rental prices between 2010 and 2022. The largest increases were recorded in Estonia, Lithuania and Ireland. Although it is sensitive in Spain.

What do other sources say? Housing Anywhere data is more or less in line with data from Idealista, another portal specializing in the real estate industry. Their chart shows that the average price per square meter (m2) in the city of Madrid in September 2024 was 20.4 euros, 15.7% more than in the same month last year and a far cry from the 11.4 euros paid a decade ago.

FotoCasa also offers another interesting fact: According to its records, rent per square meter in the capital is around 21 euros, which means the average rent is 1,905 euros. If the analysis is limited to one- or two-bedroom studios or apartments only (HousingAnywhere is limited to a maximum of three rooms) it ranges from 1,300 to 1,700 euros on average.

A problem at the table. There is no doubt that access to housing is among the main concerns of Spaniards. This is also reflected in the CIS, which moved to sixth place on the list in September, despite being ranked second not so long ago. Evidence of the concern this arouses is that the Government has already tried to control rental prices in the most distressed areas, but so far with little success. In fact, a demonstration for housing has already been called in Madrid on Sunday the 13th (13-O).

Image | Florian Wehde (Unsplash)

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