Rents in Spain rose by 4.1% last year, according to the latest figures from Spains National Statistics Office (INE). However Spanish property prices almost certainly rose by over 10% during 2004, and so rental yields in many parts of the country have fallen as a result.

The largest increases in rents were as follows: Extremadura (5.8%), Madrid (5.1%), Andalusia (4.7%), The Balearics (4.6%), Catalonia (4.4%), Murcia (4.3%) and Navarre (4.2%).

Regions with rental increases below the national average were as follows: Aragon (4%), Galicia (3.7%), Autonomous Region of Valencia (3.6%), The Basque Country (3.4%), Castilla y León, Castilla-La Mancha and Asturias (2,7%), Cantabria (2,2%), La Rioja (1,9%) The Canaries (1,7%).