Vacation Rentals in Spain: Between Professionalisation, Regulatory Pressure and New Profitability Horizons (Polaroo Report 2025)

The market for Flexible Accommodation in Spain, with its vibrant holiday rental segment, has entered a phase of maturity that combines sustained growth with strategic challenges. An in-depth analysis of this reality can be found in the Polaroo's "Report 2025: Holiday Rentals in Spain".which provides a detailed snapshot of the sector for managers and owners.

Spain, according to the report, continues to be a tourism superpower, having generated 207.763 billion euros in 2024which represents the 13.1% of national GDP. The forecast is to exceed 98 million international tourists in 2025This directly boosts the holiday rental market, especially in urban and coastal areas. The supply of holiday homes for tourist use (VUT) has grown by 8% in 2025 compared to 2024reaching 381,837 registered propertiesThe most important regions are Andalusia, the Valencian Community, Catalonia and the Canary Islands.

However, this growth has been accompanied by a increasing regulatory pressure. From July 2025, the Single Tourist Rental Register (NRUA) is mandatory to operate legally. Cities such as Barcelona, Palma de Mallorca or San Sebastian are tightening licences, limiting capacity and demanding stricter standards. For example, Barcelona plans not to renew 10,000 VUT licences which expires in 2028, and the Balearic Islands have a moratorium from 2022. Regional regulations also impose a wide range of requirements, from prior licences in Catalonia to urban planning compatibility reports in the Canary Islands. The fines for non-compliance are severe, reaching up to 600,000 euros in some cases for operating without the approval of the residents' association.

Despite this complexity, the profitability remains attractive. The average price per night in tourist accommodation stands at 192 euros. In cities such as Barcelona, the average annual income per UUTV is 43,231 euroswith an occupancy of 84%. Seville (35,179 euros) also stands out, while Madrid (32,416 euros) and Malaga (30,901 euros) maintain robust figures. However, in order to sustain this profitability, it is imperative that a strict operational cost controlwhich can range from 8,000 and 14,000 euros per property per year. Platform fees are the largest item (12-15% of revenues), followed by utilities, where electricity accounts for 45% of basic expenditure.

The report also highlights a accelerated professionalisation sector, with owners evolving into micro-entrepreneurs using tools such as PMS (Property Management Systems), automated price managers and supply management software. Digital technology is key to efficiency, with 64.2% of bookings being made online. This allows digitised operators to respond 70% faster and manage up to 4 times more properties with the same team. The time management becomes a critical factor: on average, an investment of between 33 and 56 hours per month per property in management tasks, with reservations, guest services and supplies being the main focuses. The automation and centralisation of supplies (electricity, water, gas, internet), such as that offered by Polaroo, can reduce costs by up to 40% and free up significant time.

Faced with the restrictions of the classic holiday rental market, the market is evolving with new emerging and more flexible formats. Mid-term rentals (contracts of 1 to 6 months), corporate housing (1 to 6 months), corporate housing (coliving o aparthotels) are gaining prominence. These models offer greater stability, less wear and tear on the property and a better return per square metre, as well as sometimes avoiding regulatory pressure by operating outside the framework of tourist rental.

The future prospects (according to Statista) forecast that the holiday rental market in Spain will reach 3.77 billion in 2025 and grow to 5.05 billion in 2030. The digitisation will be dominant (86% of online revenues by 2030)The demand for premium homes with swimming pools and outdoor spaces will drive sales. In the short to medium term, hybrid models will be consolidated, there will be a geographical reconfiguration towards medium-sized cities and rural areas with good connectivity, and more homogeneous regulations are expected following the implementation of the Single Registry.

The future of the Flexible Accommodation in Spain involves adapting to these dynamics, investing in technology and professionalising management to ensure a decisive competitive advantage.

The next edition Vitur Summit 2026 will take place in Malaga on Thursdays 13 and 14 May and will once again be the meeting point for operators, investors and companies in the sector to boost their business, establish strategic alliances with the different agents involved and gain access to all the latest news, trends and opportunities in the sector from leading speakers and companies.

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