Rental Demand Surges Around Spain but Málaga Bucks Trend

As Spain’s rental market heats up in 2025, new data shows tenant demand has grown significantly across most major cities, highlighting a deepening supply-and-demand imbalance. According to Idealista’s Q1 2025 figures, tenant interest per listing has risen by 20% year-over-year, jumping from an average of 29 inquiries per rental in early 2024 to 35 in 2025. This surge underscores the mounting pressure on Spain’s rental inventory, especially in urban centers like Madrid, Barcelona, Valencia, and Palma, where housing remains scarce and rents are climbing.

This growth in interest coincides with increased barriers to homeownership. With mortgage rates still elevated and stricter lending conditions in place, many would-be buyers are remaining in the rental market longer, thereby boosting demand further. Cities like Madrid and Barcelona are seeing inquiries per listing far surpass the national average, with reports of apartments receiving dozens of rental applications within hours of being listed.

In sharp contrast, Málaga has seen a surprising 12% drop in tenant interest per listing. Experts speculate that this anomaly may be linked to a rise in short-term rental conversions, new inventory entering the market, or affordability limits being pushed too far in the coastal city. Despite Málaga's continued appeal as a lifestyle destination, landlords there may need to reevaluate pricing or offer incentives to stand out in a more competitive environment.

For property owners and investors, this trend signals the growing importance of region-specific data when planning strategies. While the national market reflects rising demand, cities like Málaga prove that local conditions can tell a very different story. Landlords in high-demand areas may be able to command higher rents or negotiate stronger lease terms, while those in cooling zones should consider flexible leasing, upgrades, or pricing adjustments to stay competitive. The overall message is clear: staying attuned to market trends by city, not just countrywide averages, will be essential for maximizing returns and minimizing vacancy in 2025.
https://www.spanishpropertyinsight.com/2025/05/16/rental-demand-surges-around-spain-but-malaga-bucks-the-trend/