New rental contract prices in several Basque Country municipalities showed signs of moderation during the final quarter of 2025, falling by up to 4.1 percent after being declared stressed residential market zones. The figures reflect price declines in cities including San Sebastián, Rentería, Irún, and Lasarte-Oria, though regional officials warned it is too early to identify a permanent trend.
San Sebastián recorded a 3.7 percent drop in average rent for new contracts, falling from 1,190 euros to 1,132 euros per month over the quarter. The city has experienced two consecutive quarters of rent reductions, down from 1,175.6 euros in September 2025 to 1,131.9 euros by the end of December.
Rentería registered the largest decline at 4.1 percent, with average monthly rents dropping from 834.9 euros to 800.4 euros. Prices in Irún fell 3 percent from 878 euros to 851.8 euros, while Lasarte-Oria saw a 0.6 percent reduction from 898.3 euros to 893.2 euros.
Basque Housing Councillor Denis Itxaso called for caution when interpreting the quarterly figures. Itxaso said it would be premature to turn a single quarter into a consolidated trend. However, he noted that it was the first time in recorded history that the three main urban centers of Guipúzcoa reduced new contract prices simultaneously.
Active rental contracts in the Basque Country
The Basque Country ended 2025 with 86,522 active free market rental contracts, marking the highest total on record and a 2.4 percent increase compared to 2024. Vizcaya accounted for 42,927 active rentals, Guipúzcoa held 31,351, and Álava recorded 12,244. Across the entire region, the average monthly rent for all active housing stood at 801.4 euros.
The performance of new rental contracts differed from existing leases. Average monthly rent for new contracts dropped 0.7 percent across the region in the fourth quarter of 2025, settling at 885.5 euros. The Basque Executive indicated that this slight decrease was linked to measures applied in municipalities designated as stressed housing zones.
In Guipúzcoa, entry rents fell by an average of 3.5 percent. Itxaso highlighted that entry rents decreased in several of the most stressed municipalities while total active contracts in Guipúzcoa reached 31,351. He assured that the government was not seeing a contraction in the rental housing supply, but rather an initial price moderation alongside a higher number of rented properties.
Stressed residential market zone designations
A total of 18 Basque municipalities have been declared stressed residential market zones, including the provincial capitals of San Sebastián, Bilbao, and Vitoria. An additional 14 municipalities have applications currently under processing. Rentería was the first town to enter the system in January 2025, followed by Irún, Baracaldo, Lasarte-Oria, and Zumaia.
San Sebastián became the first provincial capital declared a stressed zone in July 2025, while Bilbao and Vitoria received the designation in late October 2025. The regional strategy combines legal rent caps, extraordinary contract extensions, reference price indices, and tax incentives for property owners.
Since the fourth quarter of 2025, reference indices in Guipúzcoa have applied to large property owners and new contracts in stressed zones. Property owners who voluntarily limit their rental rates to match these reference indices qualify for a 70 percent tax rebate on gross rental income.
Rental market trends in Vizcaya and Álava
In Vizcaya, where reference indices to cap prices began applying in 2026, monthly rents increased 2.1 percent from 890.7 euros to 909.4 euros during the fourth quarter of 2025.
Bilbao drove much of the increase in Vizcaya. Average rent in the city rose 1.9 percent between September and December 2025 to reach 1,011.1 euros per month, exceeding 1,000 euros for the first time. Álava maintained the lowest average prices in the Basque Country at 727.2 euros per month despite a 1.3 percent rise in the quarter.
Despite the overall increase in Álava, new rental contracts in the province experienced a 1.1 percent price decline. The data illustrates a divided regional market, with price drops appearing in stressed Guipúzcoa municipalities while Vizcaya continues an upward trajectory.
