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Artificial Intelligence predicts that Mallorca capital Palma will be the city with the highest rent increases in Spain in 2026

More and more tenants are looking for cities with a higher quality of life, less tourist pressure and more affordable prices than those in large capitals or the most stressed coastal areas | Photo: Majorca Daily Bulletin reporter

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Artificial intelligence applied to the property market has determined that Palma will experience a 7.4% increase in rental prices by the end of the first quarter of 2026. This figure places the Balearic capital as the Spanish city with the highest predicted quarterly increase, followed by Soria and Salamanca, both with 6.3%. The projections correspond to the period between 1 January and 31 March 2026, reflecting a mixed picture across the country.

The Fotocasa DataVenues Predictive Rental Index uses combined artificial intelligence and Big Data technologies to anticipate developments in the rental housing market. Since January 2025, this tool has been providing quarterly estimates that identify emerging trends in different Spanish capitals. The analysis reflects a diverse scenario, with capitals showing significant increases, especially in the Balearics and the interior and north of Spain, a large group of cities with stable prices, and significant decreases in very heterogeneous territories at the national level.

María Matos, director of research and spokesperson for Fotocasa, explains that “the expected increases in rents in inland and northern capitals are a response to a change in demand. More and more tenants are looking for cities with a higher quality of life, less tourist pressure and more affordable prices than those in large capitals or the most stressed coastal areas. These markets, which are traditionally more stable, have become an alternative in the face of a lack of supply and the sustained rise in rents in the most saturated urban centres’. The expert also points out that ’the expected declines in some capitals can be interpreted as one-off adjustments after episodes of strong growth. This is not a change in cycle, but a one-off adjustment”.

The region of Castile and León shows outstanding performance in the projections for the first quarter of 2026. Soria and Salamanca top the national list alongside Palma, with increases of 6.3% in both capitals. Burgos will see a rise of 4.3%, while León will experience an increase of 2.8%. This performance contrasts with other Castilian-Leonese capitals that will maintain stable prices, such as Zamora, Palencia and Ávila. Valladolid will register a decrease of 2.3% and Segovia will experience a fall of 3.4%.

In Cantabria, Santander shows a predicted increase of 6.2%, consolidating its position as one of the northern capitals with the most dynamic rental market. In Castile-La Mancha, increases are anticipated in Cuenca, with 3.8%, and Guadalajara, with 1.0%. The latter autonomous community presents a diverse picture, as Toledo will record the largest quarterly decline in the country, with a decrease of 7.0%. Albacete and Ciudad Real will maintain stable prices during this period.

The predictive index anticipates price increases in several Andalusian capitals. Seville and Córdoba will experience increases of 1.9% each, while Granada will rise by 0.9% and Jaén by 0.4%. Almería will remain stable during the first quarter of 2026. However, other Andalusian cities will see quarterly declines: Málaga will fall by 0.5%, Cádiz by 1.5% and Huelva by 3.8%. This uneven performance is due to different local dynamics in terms of supply, demand and tourist pressure. In Catalonia, the performance of the rental market also shows significant variations.

Lleida would show modest increases of 2.3%, while Barcelona and Girona would remain stable, with no change in prices. Tarragona, on the other hand, would record one of the largest declines of the quarter, with a drop of 4.5%. This situation highlights the diversity of markets within the same autonomous community, conditioned by factors such as connectivity, employment and available supply.

In the Basque Country, the three capitals show different trends. San Sebastián is among the capitals with expected increases, with a rise of 2.3%. Vitoria will remain stable, with no changes in rental prices. Bilbao, on the other hand, leads the declines in the community with a fall of 4.3%. These differences reflect the particularities of each local market and the response of supply and demand to economic and demographic conditions.

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