Spain's rental crisis deepens as 600,000 contracts expire in 2023
Over 1.5 million people in Spain face uncertainty as 632,369 rental contracts reach their five-year expiry in 2023. With no legal obligation for landlords to renew leases, tenants are bracing for steep rent hikes or the struggle to find new homes in an already strained realtor market.
The situation adds to ongoing pressure in Spain's rental sector, where supply shortages and rising demand have pushed prices up by more than 20% in many cities since the pandemic.
Spain's rental laws do not require landlords to extend contracts once they expire. This has left tenants exposed to sudden rent increases or outright refusals to renew. In some cases, landlords are opting to convert properties into short-term tourist rentals, which often bring in higher profits.
One tenant in Málaga saw their monthly rent jump by 36%, from €400 to €800, upon renewal. Similar scenarios are playing out across the country, forcing many to either accept unaffordable hikes or search for alternatives in a fiercely competitive realtor market. In Barcelona's Poble-Sec neighbourhood, an entire block of flats was sold to an investment fund, leaving tenants without the option to renew.
While some regions, classified as zonas tensionadas, have temporary price controls, most areas lack such protections. The lack of official data on pandemic-era contract terminations makes it difficult to measure the full scale of the issue. Yet the trend is clear: rents have climbed steadily since 2020, with urban areas bearing the brunt of the increases.
Tenants now face a difficult choice—pay significantly more to stay in their homes or join the scramble for dwindling affordable housing. With demand far outstripping supply, many are finding few viable options.
The expiry of over 600,000 contracts this year will test Spain's already stretched realtor market. Without legal safeguards, tenants remain at risk of sharp rent rises or displacement. Meanwhile, the shift toward short-term rentals continues to shrink the pool of long-term housing available.
