It is proof that “buying to rent” in Spain is today very profitable

For years, renting in Spain represented more than just a quick, flexible and (relatively) commitment-free way to find housing. It was also the springboard for those who wanted to take the leap and become owners of their own home, the ‘anteroom’ through which one passed while gathering the stability and sufficient level of savings to Buy an apartment. Not anymore. In the crazy market of 2026, renting has become a kind of limbo from which many families are unable to escape, trapped in an apparent contradiction: renting is much more expensive than getting a mortgage, but also more ‘accessible’.

And that makes buying to rent increasingly attractive.

What has happened? That the roles that until not so long ago seemed established in the Spanish real estate market are becoming blurred. We mentioned it before. For a long time, renting was more than just a quick and flexible way to find housing. It also served as a springboard for those who wanted to become owners. You rented, you saved and (after visiting the bank) you bought.

The problem is that after the rise in prices in recent years and the deep imbalance between supply and demand, renting is now much more expensive than getting a mortgage. And there are signs that suggest that this gap is becoming entrenched, making it increasingly difficult for those who now live as tenants to take the leap, sign a loan and become owners of their own homes.

What does the data say? It is not easy to take a general ‘photograph’ of what is happening in Spain because the real estate market varies greatly from one region to another. Even between nearby cities. All in all, there are some interesting clues. In 2018 it was already possible to find ‘top’ areas in which rents exceeded mortgage payments. Today that is the general trend in most of the country.

In 2022, an iAhorro study estimated that the monthly cost of a mortgage loan was 394 euros lower than that of renting a home. In the middle of last year, the same entity published another report that already placed this gap at €430, the difference between the average rent (1,153) and loans (722).

Those responsible for the study warned at that time that the burdens of those who live rented and those who live with mortgages were following opposite directions. Tenants suffered the consequences of a broken market in which prices do not stop growing. In the second case (that of bank loans) iAhorro detected a decrease in installments, favored by the drop in rates.

Are there more current indicators? Yes. The SER has just published a new comparison that shows that, with ups and downs, that gap remains unchanged. According to the data it manages, the average cost of a mortgage was €796 per month at the end of 2025, while that of rent is around €1,184. That is, the gap between the two is around 400 euros. If we take as a reference the average for all of 2025 for mortgages (€769), the difference is even greater, €415.

What does that mean? That on average people who live in a home they own and pay a mortgage to the bank spend about €4,800 less per year (12 monthly payments) than those who live in rented homes. The difference is even greater in highly stressed markets, such as the Balearic Islands or Catalonia.

Where do the figures come from? The credit information is provided by the College of Registrars, which in its latest real estate statistics provides data on mortgage payments for the last quarter of 2025. What do its tables show? That at the end of last year the monthly payment in Spain stood at 796.6 euros, 1.3% more than the previous quarter. That is the average indicator at the state level, but things change when we analyze each region of Spain. The cheapest is Murcia, where the fee barely exceeds 500 euros. The most expensive are, by far, the Balearic Islands (1,298.3 euros) and Madrid (1,250.3).

The data on rentals comes from the Safe Rental observatory, which indicates that in 2025 the average price of housing stood at €1,184. Once again, this is a state indicator that hides deep differences between autonomous communities. For example, the 1,643 euros paid on average by tenants in the Balearic Islands, 1,584 by those from Madrid or 1,439 by Catalans have little to do with the 707 in Castilla-La Mancha or 582 in Extremadura.

Why this gap? Because although statistics show that both mortgages and rentals have become more expensive in the last year, the latter have done so more quickly. According to the College of Registrars, credit fees have increased by 4.2%. In the case of rents, Rental Insurance estimates an increase of almost 6%, although there are other reports (this one from Idealista) that ensure that the interannual variation has been greater and exceeds 8%. The result is that tenants are forced to dedicate an increasingly greater part of their income to housing, even exceeding 40%, well above what is recommended.

Why don’t they mortgage themselves? Because although right now it is more convenient to pay a bank than a landlord, not everyone can get a mortgage. To begin with, because the purchase of a home usually requires the payment of an initial down payment. Normally 20% of its value, to which management costs are added. The dilemma for tenants is how to accumulate that sum while facing rents that take 40% of their income, neutralizing their ability to save.

Another important handicap is the solvency requirements that banks ask for. Hence, even if interest rates fall and the mortgage puts less pressure on families, it is a pipe dream for many tenants.

Images | Enes (Unsplash)

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