2 Feb, 2024 @ 08:30
1 min read

Spain’s ‘bleak’ rental market: Malaga and the Costa del Sol eat up over HALF of household income as housing costs soar

MALAGA province holds the unenviable crown of eating up the largest chunk of the average renter’s household income.

The Costa del Sol and surrounding areas eat up a staggering 53% of family income a month just to pay for the roof overhead.

The figure is the highest in all of Spain, according to a new report by rental website Idealista.

Following not far behind are the Balearic Islands at 48% and Barcelona province at 41%, with others trailing not far behind.

Across Spain, the slice of a paycheck going up in smoke each month has climbed three percent to a hefty 33%. 

Barcelona tops the list of cities, demanding 44% of household income, followed closely by Palma at 43%, Valencia at 39%, Málaga at 38%, and Madrid at 37%.

In the second tier of still-really-rather-expensive cities you find Alicante, San Sebastián, Las Palmas de Gran Canaria, Bilbao, and Segovia, each exceeding 30%. 

On the flip side, bargain hunters might want to take a gander at Ciudad Real, Teruel, Palencia, Zamora, Jaén, and Cáceres, where landlords ask for a more manageable 16-19%.

Meanwhile, average mortgage costs have jumped from 18% to 22% in the last year.

Malaga Coast
Malaga takes the crown as the most rent-demanding province in Spain

Generally, buying is less of a wallet-drain than renting, except in San Sebastián, Palma, Granada, and A Coruña. 

However, in five capitals, the financial stretch to buy a home is over the 30% benchmark: Palma (46%), San Sebastián (39%), Barcelona (33%), Málaga (33%), and Madrid (31%). 

The least demanding are Jaén, Lleida, Teruel, Palencia, and Ciudad Real, asking for just 11-13%.

A tight squeeze in housing supply and the resulting price hike is blamed for pushing rental costs to the limit, while rising interest rates are the culprits for buyers.

Idealista spokesperson Francisco Iñareta painted a grim picture of Spain’s ‘bleak’ rental market.

“If housing policies stay strict or tighten up, like in Catalonia, we’re unlikely to see a reversal in the drop in available properties, making it even tougher for families, especially the most vulnerable, to find rental homes. 

“On the buying front, the anticipated cut in ECB rates later this year might ease financing costs a bit, which could take some pressure off, unless demand surges and pushes prices up.”

READ MORE:

Walter Finch

Walter Finch, who comes from a background in video and photography, is keen on reporting on and investigating organised crime, corruption and abuse of power. He is fascinated by the nexus between politics, business and law-breaking, as well as other wider trends that affect society.
Born in London but having lived in six countries, he is well-travelled and worldly. He studied Philosophy at the University of Birmingham and earned his diploma in journalism from London's renowned News Associates during the Covid era.
He got his first break in the business working on the Foreign News desk of the Daily Mail's online arm, where he also helped out on the video desk.
He then decided to escape the confines of London and returned to Spain in 2022, having previously lived in Barcelona for many years.
He took up up a reporter role with the Olive Press Newspaper and today he is based in La Linea de la Concepcion at the heart of a global chokepoint and crucial maritime hub, where he edits the Olive Press Gibraltar edition.
He is also the deputy news editor across all editions of the newspaper.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Man in Spain's Valencia tries to strangle woman before dumping her in sofa bed to stop police finding her
Previous Story

Gibraltar man, 21, is charged with assault, strangulation and burglary

Hotel workers set to strike over Easter holiday in Spain's Murcia region
Next Story

Fears for tourism in Spain this year as drought threatens to wreak havoc: Hotel bosses rush to assure visitors

Latest from Andalucia

Go toTop