According to data from Idealista, the cost of renting a home in Spain hit an all-time high in May 2026, averaging 15.1 euros per square meter per month.
Rents rose by 0.6% over the month and by 4% year-over-year. The previous high was recorded in early 2026, when the average rate stood at around €15 per square meter. Thus, the Spanish rental market continues to grow despite the government’s attempts to curb pressure on the housing market.
The rise in prices is linked to a persistent imbalance where demand exceeds supply, particularly in major cities, tourist regions, and areas with a high concentration of jobs. The market is also influenced by a shortage of affordable rental housing, the shift of some apartments to short-term rentals, rising demand from migrants and students, as well as caution among landlords following tighter regulations.
In April 2026, the average rent in Spain was €15 per square meter, which was 5.2% higher than in April 2025. In May, the figure rose to €15.1 per square meter, though the annual growth rate slowed to 4%.
The most expensive markets remain the major economic and tourist hubs. In Madrid, the average rent in April reached €23.3 per square meter per month, which is 8.6% higher than a year earlier. This is one of the highest levels among the country’s largest markets.
At the provincial level, rents rose across nearly all of Spain in the spring of 2026. Prices rose in 49 of 50 provinces, with the sole exception being Barcelona, where a decline of 8.5% was recorded. The largest increases were recorded in Lleida, Toledo, Guadalajara, and Segovia.
High rental rates are intensifying social and political pressure surrounding the housing market. In recent years, Spanish authorities have been discussing restrictions on short-term rentals, expanding affordable housing, regulating rental rates in high-demand areas, and offering incentives to landlords willing to rent out apartments at moderate prices.
For foreign buyers and investors, rising rents mean continued interest in Spanish real estate as an income-generating asset, but at the same time, they increase regulatory risks. In regions with a housing shortage, authorities may tighten rules for vacation rentals and impose additional restrictions on short-term rentals.
Spain remains one of the largest real estate markets in Southern Europe. Rental demand is driven by major cities, international migration, tourism, the student sector, and the remote work market. The tightest market conditions persist in Madrid, Barcelona, the Balearic Islands, the Canary Islands, Malaga, Valencia, and other popular cities and coastal regions.
In 2025, Spain granted citizenship to a record number of foreign residents—299,732 people—which is 18.7% more than the previous year. This was the highest figure since 2013, when the INE began compiling these statistics. In 2024, 252,476 foreigners received Spanish citizenship; in 2023, 240,208; and in 2022, 181,581.
The largest group of new Spanish citizens in 2025 were immigrants from Morocco—42,114 people. They were followed by citizens of Colombia—37,712, Venezuela—36,271, Honduras—20,745, Peru—15,920, Cuba—14,390, Ecuador—13,689, Argentina—11,291, the Dominican Republic—9,915, and Nicaragua—8,951
Thus, nine out of the ten largest groups of new Spanish citizens came from countries in Latin America and the Caribbean. This reflects the specifics of Spanish legislation: for citizens of Ibero-American countries, as well as certain other categories, the residency requirement for applying for citizenship can be significantly shorter than the standard 10-year period.
In terms of the method of obtaining citizenship, the majority of cases involved naturalization through residency—253,836. Another 45,715 people obtained citizenship through an option applicable, in particular, to individuals who were under the parental authority of a Spanish citizen, or to those whose father or mother was Spanish and was born in Spain.
Women accounted for 55.4% of Spain’s new citizens, while men accounted for 44.6%. The largest age group was people aged 30 to 39, followed by those aged 40 to 49.
Regionally, the highest number of new citizens was registered in Catalonia—70,933—and the Community of Madrid—69,566. Together, these two regions accounted for 46.9% of all cases of Spanish citizenship acquisition in 2025. They were followed by the Valencian Community—32,388, Andalusia—27,538, the Basque Country—14,230—and the Canary Islands—13,366
Ukrainian citizens were also included in Spain’s naturalization statistics but do not belong to the largest groups of new citizens. According to a detailed INE table, 2,588 Ukrainian citizens obtained Spanish citizenship in 2024.
In 2023, there were 2,693 such cases, in 2022 – 3,206, in 2021 – 2,167, and in 2020 – 2,254.
The Ukrainian presence in Spain remains significant. According to data from Spain’s Ministry of Inclusion, Social Security, and Migration, as of December 31, 2025, there were 338,576 Ukrainian citizens in the country with valid residence permits. By March 31, 2026, that number had risen to 345,995 people.
The growth in the number of new Spanish citizens is occurring against the backdrop of an increase in the country’s foreign population and Madrid’s active migration policy. Spain remains one of the key destinations for migrants from Latin America, North Africa, and Eastern Europe, as well as one of the EU’s most popular markets for relocation, labor migration, and real estate purchases.
These statistics are important for the real estate market, as naturalization and long-term residency boost domestic demand for housing. Unlike traditional foreign investors, new citizens and long-term residents are more likely to purchase real estate not only for investment or vacation purposes, but also for permanent residence, work, family integration, and their children’s education.
For Ukrainians, Spain also remains a notable destination for residence, although the mass naturalization of Ukrainian citizens has not yet reached the scale seen among Latin American and Moroccan groups.
Foreign buyers continue to play a significant role in Spain’s housing market, despite record price increases and a gradually intensifying political debate over housing affordability, according to data from Spanish property registries.
In the first quarter of 2026, foreigners completed nearly 25,000 housing transactions, accounting for about 14% of all sales in the country. This figure marked the fourth-best result in the history of the data series. Meanwhile, the average price per square meter in Spain reached a new all-time high of EUR 2,429 per square meter.
Despite a slight year-over-year decline of 3.2% in the number of foreign transactions, international demand remains steady. The majority of foreign buyers are EU citizens, accounting for 58.3% of such transactions. The largest groups of buyers in the first quarter were citizens of the United Kingdom (6.8%), the Netherlands (6.6%), Morocco (6.2%), Germany (6.0%), and Italy (5.5%). Buyers from France, Romania, and Poland also account for a significant share.
Geographically, foreign demand remains concentrated in tourist and coastal regions. The highest share of transactions with foreigners was recorded in Alicante—44.6%, Málaga—34.3%, the Balearic Islands—28.9%, the Canary Islands (22.8%), and Murcia (21.7%). This confirms that foreigners primarily purchase housing in areas popular for leisure, rentals, and migration.
This growth in demand is occurring against the backdrop of a general rise in housing prices. The average price of real estate in Spain rose by 8.9% over the year. Resale homes increased in price by 9.6%, while new construction rose by 6.9%. The most expensive regions remain the Community of Madrid—EUR4,407 per square meter, the Balearic Islands—EUR4,173, the Basque Country—EUR3,474, and Catalonia—EUR2,852. Among cities, San Sebastián leads the way at EUR6,154 per square meter, followed by Madrid at EUR5,428 and Barcelona at EUR4,922.
Mortgage lending is also supporting demand. In the first quarter, the number of mortgages rose by 15.2% year-over-year, and about three-quarters of housing transactions were financed with a loan. This shows that the market relies not only on buyers with cash on hand but also on the availability of bank financing.
Over the longer term, foreign demand also remains high. In 2025, foreigners purchased nearly 97,300 houses and apartments in Spain, setting a new record. Their share of total transactions was 13.8%, compared to 14.6% in 2024 and 15% in 2023.
Ukrainian buyers are also a notable presence in the Spanish market. According to data from Spanish notaries, in the first half of 2025, Ukrainian citizens completed 2,165 real estate transactions in Spain, setting a historic record for themselves. Idealista notes that Ukrainians joined the group of nationalities that purchased housing in Spain more actively in 2025 than ever before.
Separate statistics on Ukrainians show that their interest in Spain is linked not only to investment but also to relocation, temporary refuge, and long-term residency.
The average cost of long-term housing rentals in Spain reached a historic high of EUR15 per square meter per month in April 2026, according to the Idealista portal.
According to analysts, rents have risen by 5.2% over the past year. However, the growth rate has been the most moderate since the summer of 2022, indicating a gradual slowdown in the market following several years of sharp rate increases.
Despite the slowdown, the market remains tight. The main reason is the persistent gap between supply and demand. In major cities, tourist regions, and university centers, demand is driven by local renters, foreign workers, students, digital nomads, and short-term rentals. At the same time, new supply is entering the market slowly, and some landlords prefer tourist rentals over long-term contracts.
For tenants, record-high prices mean housing is becoming even less affordable. The problem is particularly acute in Madrid, Barcelona, Valencia, Málaga, and the Balearic and Canary Islands, where rental demand is driven not only by domestic migration but also by foreigners. According to Idealista, rents in Spain rose to EUR15 per square meter in April, though no longer at the double-digit rates seen in previous years.
The migration factor remains one of the key drivers of the market. According to data from Spain’s National Institute of Statistics, as of January 1, 2025, the largest groups of foreigners in the country were citizens of Morocco—968,999 people—Colombia—676,534—and Romania—609,270. Other major groups include immigrants from Venezuela, Italy, China, Peru, the United Kingdom, Ukraine, and other countries.
In 2024, the number of Colombian citizens grew the fastest—by 98,057 people—followed by Venezuelans—by 52,555— and Morocco—by 48,306. At the same time, the number of Ukrainian citizens, according to INE data, decreased by 7,907 people, which may be due to changes in residency status, the relocation of some Ukrainians to other countries, or naturalization.
The influx of foreigners is driving up demand for rentals, particularly in cities with job opportunities, universities, and a developed service sector. In the fourth quarter of 2025, the main groups of new immigrants to Spain were citizens of Colombia, Venezuela, and Morocco.
Investment demand is creating additional pressure on the market. Foreign homebuyers in Spain pay significantly more than locals: in the second half of 2025, non-residents purchased homes at an average of EUR 3,242 per square meter, foreign residents at EUR 1,963, and Spanish citizens at EUR 1,839. This also affects the rental market, as investment purchases are often aimed at renting out the property.
Thus, Spain faces a double challenge: rents have already reached record levels, but a structural supply shortage does not yet allow for a rapid decline in prices. Even a slowdown in annual growth to 5.2% does not signal a market reversal, but rather indicates a shift from sharp price increases to a more stable, though still expensive, level of rents.
The province of Alicante has strengthened its position among Spain’s largest residential real estate markets, remaining a key hub for demand from both local and foreign buyers. This is reported by Prian, citing data from the Spanish housing market. An additional growth factor remains the high interest from foreigners, thanks to which Alicante maintains a special status in the national market.
According to Idealista, in 2025, foreigners accounted for 45.7% of all housing transactions in the province of Alicante—one of the highest figures in the country and, in fact, nearly half of the market. By comparison, the share of foreign buyers across Spain as a whole was 13.8%, and in the Valencian Community, 27.6%; in other words, Alicante significantly outpaces both the national and regional averages.
High foreign buyer activity supports market liquidity and demand in coastal areas, particularly on the Costa Blanca. At the same time, this makes Alicante one of the main indicators of external demand for Spanish housing, especially in the segments of second homes, investment apartments, and properties for permanent residency.
Among foreign buyers in Spain in 2025, citizens of the United Kingdom, the Netherlands, and Germany dominated. According to Spanish sources in the Valencian Community, in 2025 the Netherlands took first place among foreign homebuyers in the region, displacing the British, followed by Belgians, Poles, Ukrainians, and Germans among the most prominent groups.
Spanish authorities have launched an emergency administrative legalization process for migrants already in the country without regularized status. The Council of Ministers approved the relevant royal decree on April 14, and the application period began on April 16 and will run until June 30, 2026. The government estimates that the measure could potentially cover approximately 500,000 people.
According to official explanations from the Spanish authorities, foreigners who were in Spain before January 1, 2026, have lived in the country continuously for at least five months, and have no criminal record are eligible to participate. Certain applicants for international protection are also included in the scheme. The measure is framed as an emergency measure and, according to Madrid, is intended to simultaneously reduce the informal labor market and address part of the labor shortage amid an aging population.
The Spanish government explicitly links the decision to the economy. An official Moncloa memo states that regularization should facilitate the integration of migrants already in the country into the legal labor market and the social security system. Experts note that Pedro Sánchez’s cabinet is presenting this initiative as a response to demographic aging and labor shortages in a number of sectors.
The scale of migration in Spain is indeed very large at present. According to data from Spain’s National Institute of Statistics, as of January 1, 2025, the country had a population of 49.13 million, of whom 14.1% held foreign citizenship and 19.3% were born outside Spain. As of January 1, 2026, the number of residents born abroad exceeded 10 million for the first time.
Among the largest foreign groups in Spain by nationality as of January 1, 2025, Moroccans led the way with 968,999 people, followed by Colombians with 676,534 and Romanians with 609,270. The INE also notes that in 2024, the largest increases were among citizens of Colombia, Venezuela, and Morocco, while notable decreases were seen among those from Ukraine and the United Kingdom.
There are also separate official statistics regarding Ukrainians. Spain’s Ministry of Inclusion, Social Security, and Migration reported that the number of Ukrainian citizens with valid residence permits in the country exceeded 338,000 in December 2025. This is one of the largest national groups among holders of valid residence permits outside the EU system.
In practical terms, this new legalization could further strengthen Spain’s role as one of the few major EU countries that are attempting not only to curb migration but also to bring people already in the country into the legal framework. For the labor market, this means a potential expansion of formal employment, and for the real estate, retail, agriculture, care, and service sectors—an influx of workers and consumers. But at the same time, the burden on immigration offices will increase; employees of these agencies have already threatened to strike due to a lack of resources to handle the new wave of applications.
