Where renting a house is a luxury: Two municipalities in the Balearic Islands are among the most expensive in Spain

PalmIbiza and Calvià remain among the ten municipalities with the highest rental prices in Spain, with rents exceeding €22 per square meter. This is according to the report. Rental housing in Spain in the year 2025According to the study prepared by the real estate portal Fotocasa, Ibiza ranks second in Spain, with an average price of €23.34/m², surpassed only by Esplugues de Llobregat, which leads the ranking at €25.53/m². Calvià comes in fourth, with an average price of €22.17/m², while Barcelona is just ahead of Ibiza, at €23.30/m². The report also analyzes price trends by province and places the Balearic Islands as the fourth most expensive in Spain, with an average of €18.60 per square meter, representing a year-on-year increase of 7.2%. Only Barcelona (€21.90/m²), Madrid (€20.66/m²), and Gipuzkoa (€19.02/m²) have higher prices. Fotocasa notes that the rental market closed 2025 with a scenario marked by "very high prices," concentrated mainly in areas with strong demand, such as Catalonia, the Community of Madrid, the Balearic Islands, the Basque Country, and the Canary Islands. In this regard, the portal's Director of Studies and spokesperson, María Matos, explains that "the increase in rental prices is especially concentrated in areas with greater demographic and economic pressure, where the creation of new housing stock is unable to absorb existing demand." This structural lack of supply, she adds, causes prices to remain persistently high, even in contexts of lower economic growth. Matos also points out that, although the rate of price growth has moderated in some areas, rents remain at "peak levels," which demonstrates that "the adjustment is not due to a real market relaxation, but rather to the economic limitations of households in affording increasingly higher rents."