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Spain’s housing market: Luxury homes outpace affordable rentals
More million-euro properties than low-cost rentals
Spain’s housing market is marked by a glaring imbalance, with more luxury homes priced over €1 million than rental properties available for under €1,000. According to data from the property portal Idealista, there are currently 43,707 homes listed for sale above €1 million, compared to just 31,370 rental properties under the €1,000 mark.
This disparity highlights the growing challenges in accessing affordable housing, as the demand for rentals far outweighs the supply, especially in major urban and tourist areas.
Luxury real estate concentrated in six provinces
Eighty-four percent of Spain’s high-end homes are located in six key provinces: Madrid, Barcelona, Girona, the Balearic Islands, Málaga, and Alicante.
The Balearic Islands lead with 23% of the country’s luxury property listings, followed by Málaga with 20%, Madrid with 14%, and Alicante and Barcelona each holding 11%. Girona accounts for 6%. Other provinces like Santa Cruz de Tenerife (3%), Cádiz (2%), and Valencia (2%) also feature notable concentrations of million-euro homes.
In Madrid, the contrast is especially stark: there are 5,669 properties priced above €1 million compared to only 920 rentals for less than €1,000, creating a six-to-one ratio favoring luxury housing.
Affordability crisis and housing shortages
The housing crisis has become a dominant issue for Spaniards, with the January 2025 barometer by the Centre for Sociological Research (CIS) identifying it as the country’s top concern, reaching levels not seen since 2008.
The problem is further exacerbated by a severe housing deficit. Appraisal firm UVE Valoraciones reports that Spain’s three largest cities—Madrid, Barcelona, and Valencia—concentrate the majority of the housing shortage. Madrid alone faces a deficit of over 200,000 homes, while Barcelona and Valencia fall short by 148,000 and 98,000 homes, respectively.
High-net-worth buyers drive luxury demand
The surge in luxury home listings is tied to the appeal of Spain’s Mediterranean coastline and tourist hotspots, which attract wealthy international buyers. "Luxury homes are concentrated in the most dynamic locations along the Mediterranean. These areas of high tourist interest generate great attraction for high-net-worth individuals, who often establish second homes in Spain," said Beñat del Coso, spokesperson for Idealista.
Unsurprisingly, these regions also have Spain’s highest rental prices. Idealista reports average rental costs of €20.3/m² in Madrid, €19.7/m² in the Balearic Islands, and €16.7/m² in Málaga.
A widening housing gap
The imbalance between luxury housing and affordable rentals underscores a growing inequality in Spain’s property market. As high-net-worth individuals continue to drive demand for second homes, the gap between the availability of affordable housing and luxury real estate widens, leaving many Spaniards struggling to find suitable living arrangements.
