According to the INE (National Institute of Economy in Spain), holiday rental prices in Spain grew by 11% in the first quarter.
This evolution of the holiday rental prices in Spain reflects a higher tension in the market that is in line with the recovery of foreign tourism observed in the last year.
The housing supply for holiday rental in Spain is estimated at more than 305,100 units throughout the whole of Spain. Of these, 85% are in provinces with a coastline, 80% if we exclude Barcelona, which has a high volume of urban tourism and not exclusively beach tourism.
The geographical concentration of holiday homes is high. Around 45% are divided between the archipelagos (22%), Malaga (12%) and Alicante (11%).
According to the INE, the number of rental properties contracted from 2020 onwards and has not yet recovered to pre-pandemic levels, mainly due to reduced supply in Catalonia, Valencia and the Balearic Islands, which offset the increase experienced on the North Coast, the Canary Islands and some Andalusian provinces.
On the other hand, the demand for holiday rentals is 40% national and 60% foreign, 80% of which are European.
The evolution of the number of travellers renting holiday homes returned to the highs in 2019, although the dynamics are different between those who reside in Spain and abroad.
Moreover, residents in Spain reached an all-time high in the summer of 2021, while residents abroad needed one more year to record the most marked momentum in the summer of 2022, still not surpassing the levels of 2019.
At the same time, the continuous increase of the holiday rental prices in Spain, represent a great opportunity for long term real estate investments.
Source: Idealista. Photography by Clicjeroen.