Madrid housing prices soar while Barcelona curbs rents

A recent Caixabank Research report reveals that regulation of Barcelona’s property market has managed to curb rising prices, while Madrid continues to face increases in both rents and home purchases.

According to the data, in September last year, a family in Barcelona needed an average of 13 years to pay off its mortgage, compared with the 16 years required in Madrid. In the rental market, the difference is also notable: in December, annual rent in Barcelona accounted for 35% of average household income, while in Madrid it exceeded 37%.

The change came after rent caps took effect in 140 Catalan municipalities in March 2024. Since then, the average price of new rental contracts in Barcelona has fallen by almost 5%, according to the Metropolitan Housing Observatory.

Spain has been dealing with the rising cost of housing for more than five years, a trend that has excluded young people and vulnerable groups from the market. The imbalance between supply and demand, together with the increase in foreign residents, has put further strain on the system.

The president of the Community of Madrid, Isabel Ayuso, has criticised Catalan regulation, saying that the supply of rental flats has decreased. However, the Observatory notes that there are currently around 1,500 more listings than in March last year.

Experts warn that Madrid’s market may be changing quietly, with thousands of homes moving from long-term rentals to more profitable options such as seasonal or short-stay lets. The Más Madrid party says that more than 2,000 temporary rental flats appeared in just one quarter of 2025, fuelling fears that landlords will prioritise profitability over residential stability.

Political tension is growing. Más Madrid demands urgent measures to prevent what it calls the “emptying” of the permanent rental market. Catalonia has already tightened the rules, requiring seasonal and room rentals to comply with official price limits too, in order to prevent investors from sidestepping controls.

Meanwhile, Más Madrid calls for a massive expansion of public housing and guarantees that protected flats will not lose their status. At national level, Pedro Sánchez’s government has intensified its response to the housing crisis by combining regulation and enforcement. Last year, the authorities removed some 60,000 irregular tourist homes, identified as one of the main drivers of rising urban rents.

The government argues that this offensive is key to easing pressure on supply in saturated cities, where the boom in holiday lets has displaced thousands of residents.