Canary Islands record second-highest rent rise in Spain in 2025
The Canary Islands registered the second biggest rise in residential property rental prices among all of Spain’s regions in 2025, with an annual increase of 12.8%. Only Castilla-La Mancha saw a sharper rise, at 19.8%.
Across Spain, overall rental inflation eased compared with previous years, according to data from major property portals. Fotocasa reported a nationwide annual rise of 6.9%, while Idealista put the figure at 8.5%.
Fotocasa noted that rental prices increased for the fourth consecutive year, closing 2025 at 14.21 euros per square metre per month, almost 7% higher than in 2024, when rents surged by 14%. Idealista estimated the average rent at 14.70 euros per square metre per month, up 8.5% over the year but still below the 11.5% jump seen in 2024, when prices hit record levels. Both portals handle more than one million property listings for sale and rent.
Pisos.com reported the steepest increase, with rental prices rising 16.6% in 2025.
Where are rents rising fastest?
Fotocasa identified Madrid as the most expensive region to rent in 2025, at 20.30 euros per square metre per month, followed by Catalonia (20.02 euros) and the Balearic Islands (18.70 euros). Madrid was also the only region to record a year-on-year decline, falling by 1.4%. The strongest increases were seen in Castilla-La Mancha (19.8%), the Canary Islands (12.8%), and Catalonia (11.5%).
Data from Idealista showed the biggest price hikes in major markets such as Madrid (9.7%), Alicante (8.3%), Seville (7%), Valencia (6.4%), Palma (6.4%), Málaga (4.7%), Bilbao (3.1%), and Barcelona (1.9%). By city, Barcelona remained the most expensive to rent in at 23.80 euros per square metre per month, ahead of Madrid (22.70 euros) and Palma (18.30 euros).
Moderate increases and upward forecasts for 2026
Fotocasa highlighted that December’s year-on-year increase was the most moderate of 2025, indicating a slowdown from the double-digit rises seen in previous years. While this does not yet suggest a clear shift in market cycle, the portal sees early signs of stabilisation and a rental market moving at two different speeds.
Economically stronger regions with high demand are easing off, while less pressured areas continue to experience sharp increases, reflecting a shift of tenants seeking more affordable locations.
Looking ahead, Fotocasa forecasts rents could rise by around 7% in 2026.
Idealista continues to warn that the main challenge for the rental market is a shortage of available supply. Although prices appear to be moderating in areas where controls have been introduced, they continue to rise elsewhere. The portal also cautions that price caps are ultimately being felt by prospective tenants, who face dwindling supply and tougher conditions.
Pisos.com, which forecasts rental price growth of 7.8% in 2026, notes that finding accommodation aligned with the average salary has become increasingly difficult, frustrating, and discouraging for many renters.
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