Room rental paradox in Malaga's shared apartments: demand falls, supply rises and yet prices still climb

The new academic year is about to begin and it's the peak season for young people starting their university studies to be on the hunt for rooms in shared apartments. Likewise, it's also a good time for those who, with the end of summer, might be starting a new job in Malaga city, because not everything in the economic activity of the province or this city revolves around tourism.

The situation that the real estate website Idealista paints for this market segment, in particular for Malaga city, is quite the paradox. On the one hand, it reflects a 19% drop in demand, placing the Costa del Sol capital among those registering the greatest decline in people interested in renting a room, behind only Barcelona, Palma de Mallorca and Valencia. On the other hand, it records a 45% increase in the supply of shared apartments, that is, homeowners who rent out their properties by the room, which also places Malaga among the hottest markets for these rentals in all of Spain, only behind such as Palma and Valencia.

An increase in supply and a decrease in demand, according to the classic laws of the market economy, should lead to a drop in prices. However, these principles do not always apply to real estate. Renting rooms in shared apartments continues to rise, according to the latest statistics published by Idealista. Specifically, at the end of the second quarter of 2025, renting a room was costing 425 euros per month on average in Malaga city, 6% more than a year earlier. This price is slightly higher than the Spanish monthly average of 420 euros, which is 5% more than a year earlier after demand fell by 2% and supply increased by 24%.

The most expensive provincial capital in Spain to rent a room in a shared apartment is Barcelona, at 570 euros per month, a rise of 1%, despite a 30% increase in supply and a 28% drop in demand. In second place is Madrid with a monthly average of 527 euros, 5% more than 12 months ago. Note also that this is the price after the number of properties available has increased while those interested in renting them have decreased.

Ahead of Malaga in terms of price are also the cities of San Sebastian and Palma, with 475 and 450 euros average monthly rents respectively. These are two cities where the same phenomenon has also occurred: supply has risen, while demand has fallen.

Interestingly, in the Balearic capital, the laws of the market economy still apply: here the price of rooms has fallen by 10% in the last year. This is the biggest drop recorded nationwide, after supply grew by 71% and demand fell by 28%.

The provincial capital where it is cheapest to rent a room is Jaen (240 euros per month). In this city the price has risen by 14% year-on-year. In fact, it is one of the Spanish capitals where the cost of sharing a flat has risen the most, along with other smaller ones, such as Zamora (18%, up to 260 euros per month), Segovia (16%, up to 320 euros) and Palencia (15%, up to 250 euros), while in Lugo and Ciudad Real the increase has been an identical 14%, up to 279 and 250 euros respectively.