Rental price increases ease on the Costa del Sol but they are now hitting inland areas of Spain

Rental prices in Malaga city have been falling for two consecutive months, according to figures from Idealista, which uses data from the listings posted on its property portal, meaning they use the starting asking prices, not the final agreed price at which a contract is signed. In July, landlords were asking for 0.2% less than in June. Then, in August, the drop in apartment owners' expectations was 0.7%, according to this Spanish real estate website. As a result, the average monthly rental price in the capital of the Costa del Sol is 15.50 euros per square metre. Nevertheless, rents in Malaga remain above the Spanish average, which stood at 14.50 euros per square metre per month in August.

Even so, rental prices are now higher than a year ago in Malaga city. Specifically, rents are currently 6.8% higher than 12 months ago. The increase, therefore, is far from achieving double-digit figures. It is also much further behind some other provincial capitals in Spain, where the rise in rent prices is now more pronounced and which, generally speaking, are smaller cities, with many of them located centrally in the Spanish plain. As such, it is Segovia that tops the ranking with an increase close to 20% (although the average price stands at 12.40 euros per square metre per month), while in Teruel and Zamora the increase is approximately 19% (although the average rent is 8.60 and 7.90 euros per square metre per month respectively). The increases are above 15% in Ourense, León and Ciudad Real. Other cities are facing increases of over 10%, such as Guadalajara, Cáceres, Ávila, Palencia, Madrid, Jaen, Oviedo, Albacete and Burgos.

Rental increases in Malaga city, therefore, are also below the Spanish average, which stands at 10.5% year-on-year.

Despite this slight downturn in prices, Malaga is still the fifth most expensive city location to rent in Spain. The 15.50 euros per square metre per month in this city is only surpassed by these cities: 23.10 euros in Barcelona, 22.20 euros in Madrid, 18.40 euros in San Sebastián and 18 euros in Palma de Mallorca. The Costa del Sol capital remains above Valencia, Bilbao and the two Canary Island capitals.

Skipping from the provincial capitals to the whole area, Malaga province has recorded its first price drop in August compared to July levels. The decrease is minimal, 0.1%, bringing the average price to 16.70 euros per square metre per month. It's worth noting that the average provincial rent exceeds that of the capital, as is also the case in Palma de Mallorca (the aforementioned 18 euros) and the Balearic Islands (19.40 euros).

Malaga is also the fifth most expensive province in Spain, behind Madrid (20.50 euros), Barcelona (19.90 euros), the Balearics (19.40 euros) and Guipúzcoa (16.70 euros).

Compared to levels a year ago, the rent increases across the whole of Malaga province have reached double digits - 10.5% to be exact. However, there are many other places, especially further into the Spanish mainland, where the increases are much higher, because prices also start - and remain - at much more modest levels. Therefore, in the province of Zamora, renting an apartment today is 19.3% more expensive than 12 months ago (still at 7.50 euros per square metre per month, meaning that it costs half as much as renting in Malaga city and less than half as much in the province). Similarly, in Segovia, the increase is 17% (to 11.20 euros per square metre per month) and, in Teruel, the increase is 16.5% (up to 7.70 euros).

Rental increases also range between 14% and 15% in Ourense, Guadalajara, Palencia, Avila and Toledo.

The cheapest province in Spain for renting is Jaen, at 6.70 euros per square metre per month, followed by Ciudad Real, where it is also under seven euros. Next are Badajoz, Cáceres and Cuenca (all at 7.30 euros).