Spain’s Holiday Rental Market Falls by 11%: What It Means for Property Owners and Investors

Spain’s short-term rental market is changing. Recent figures reported by the National Statistics Institute show that the number of tourist apartments in Spain fell by 10.7% in May compared with the same month the previous year, equivalent to around 40,000 fewer holiday rental properties. In May, Spain recorded 341,001 tourist accommodation properties, while the total number of available tourist rental places fell by 11.1% to approximately 1.71 million.

For property owners, investors and buyers, this is not simply a statistical movement. It reflects a wider shift in the Spanish property market: regulation, community restrictions, licensing pressure and local housing concerns are now directly affecting the profitability and viability of holiday rentals.

A cooling holiday rental market in Spain

Holiday lets in Spain have grown strongly over recent years, particularly in coastal regions, major cities and high-demand tourist destinations. However, the latest data suggests that the market is entering a more selective phase.

The reported fall of nearly 11% comes after several months of adjustment, with the number of tourist properties declining for a second consecutive period. Even so, the market remains substantial, with more than 341,000 tourist rental homes still recorded across Spain.

This means demand for holiday accommodation has not disappeared. Instead, the market is becoming more regulated, more professional and less forgiving for owners who have not structured their rental activity correctly.

Regulation is becoming a key factor

One of the most important drivers behind the reduction in tourist apartments is increased regulatory pressure. The article refers to the impact of measures such as the Ventanilla Única Digital and reforms to the Ley de Propiedad Horizontal, which strengthen the role of property communities when deciding whether tourist rental activity should be permitted.

For owners, this creates a clear message: before buying, renting or converting a property into tourist accommodation, legal and administrative due diligence is essential.

A property that looks attractive as a holiday rental investment may not necessarily be suitable once licensing rules, community statutes, local restrictions and tax obligations are reviewed.

Regional differences matter

The impact of tourist rentals varies significantly by region. According to the reported figures, the highest concentration of tourist properties is in the Canary Islands, with just over four tourist homes per 100 residential properties, followed by the Balearic Islands and Andalucía.

For buyers and investors, this matters because Spain is not a single uniform market. A property investment strategy that works in one municipality may not work in another. Licensing requirements, community rules, local tourism demand, seasonality and operating costs can differ substantially.

This is particularly relevant for international buyers looking at coastal areas, where holiday rental income is often part of the investment calculation.

What this means for property owners

For existing owners, the fall in the number of holiday rentals may create both challenges and opportunities.

On one hand, owners without the correct licence, clear community approval or a professional management structure may face more difficulty operating legally and profitably. On the other hand, compliant and well-positioned properties may become more attractive as informal or non-compliant competition leaves the market.

The key is no longer simply owning a property in a popular tourist location. Owners need to understand:

• whether tourist rental activity is legally permitted;
• whether the community of owners allows short-term rentals;
• whether the property meets local licensing requirements;
• what tax obligations apply;
• whether the expected net income justifies the investment.

What this means for buyers and investors

For buyers, the latest figures reinforce the importance of making decisions based on verified information, not assumptions.

A property advertised as “ideal for holiday rentals” should be reviewed carefully. The potential return depends not only on location and presentation, but also on licence availability, local regulation, community rules, operating costs, occupancy levels and management quality.

At Geres Group, we regularly advise clients who are considering buying property in Spain either for lifestyle, investment or rental purposes. Our role is to help clients look beyond the headline price and assess the full picture: legal status, rental potential, market positioning, taxes, property management and long-term exit strategy.

Professional advice is now more important than ever

The Spanish holiday rental market is not disappearing, but it is maturing. Regulation is increasing, communities are becoming more involved, and authorities are paying closer attention to how short-term rentals affect local housing supply.

For serious investors, this creates a need for a more professional approach. The best opportunities will increasingly be those where the property, licence, location and management model are aligned from the beginning.

Geres Group can assist with:

• property sourcing and acquisition advice;
• holiday rental viability checks;
• coordination with legal and tax professionals;
• property management and keyholding solutions;
• rental strategy and market positioning;
• support for international and non-resident owners.

Final thoughts

The 11% fall in Spain’s tourist apartment stock is a clear sign that the market is changing. For owners and investors, this should not be seen only as a warning, but as an opportunity to operate more professionally and make better-informed decisions.

In today’s market, successful property investment in Spain requires more than finding a beautiful home. It requires understanding the law, the local market, the numbers and the long-term strategy.

At Geres Group, we help property owners, buyers and investors navigate exactly that. Whether you are considering buying a holiday rental property, reviewing the profitability of an existing asset or looking for professional property management in Spain, our team can guide you through the process with clarity and practical advice.