A recent report reveals that renting a 90 m² home in Madrid is more expensive than buying it. The pressure of rental costs extends to several municipalities in the metropolitan area.
Renting a 90 square metre home in Madrid has become more expensive than buying it, according to the III Housing Report in Madrid, presented by CENTURY 21 Spain and the Real Estate Observatory. This significant change reflects a rent increase that has ranged between 30% and 50% since 2022, prompting many to reconsider their housing options. In the capital, tenants now have to allocate 40% of their average income to cover rent, while buying requires only 34%. This phenomenon affects not only Madrid but also nearby municipalities such as Leganés and Fuenlabrada.
The report highlights that, although the average income of Madrid households has increased by 21%, the rising cost of the real estate market has outpaced this growth. Buying a 90 m² home in central Madrid has an average price of 412,077 euros, with an estimated monthly mortgage payment of 1,578 euros. In contrast, the monthly rent amounts to 1,889 euros, representing a considerable financial burden for tenants.
The situation becomes even more complicated when observing how rents have dramatically increased: since 2022, prices have risen by 300 to 400 euros per month in many analysed municipalities. For example, Fuenlabrada stands out as one of the few places where it is still possible to purchase a home for under 200,000 euros, with an average price of 199,050 euros. This makes the municipality the most affordable for buying within the metropolitan area.
However, not everything is positive for those looking to buy their first home; economic barriers remain significant. Although buying may be less costly monthly compared to renting, factors such as the initial savings required and limited credit capacity restrict options for young people and families without prior assets.
Regarding Pozuelo de Alarcón, this municipality stands out for having high average incomes that allow for a relatively low financial effort: only 16% for buying and 15% for renting. However, it remains one of the few places where buying is slightly more expensive than renting.
As this year progresses, experts warn about the increasing pressure of the real estate market not only in central Madrid but also in nearby towns such as Leganés and Coslada, where effort rates already exceed the recommended threshold of 30% for sustainable rentals.
This scenario raises questions about how this trend will affect both tenants and potential buyers in the long term. Families must be prepared for this new economic reality if they wish to access suitable housing without compromising their financial stability.
For those interested in exploring more affordable housing options or learning about first-time buyer assistance programs, it is recommended to visit local real estate portals or consult with specialised agents before making important decisions.
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