The market for Flexible Accommodation in Spain, particularly in terms of holiday rentals, continues its upward trend, establishing itself as a major player in the real estate scene. A recent analysis by Fotocasa Research sheds light on the trends that are shaping this sector, characterised by an attractive profitability that skews the balance against traditional rentals.
The data are unequivocal: the average gross profitability of housing in Spain stood at 6.5% in 2023. However, when looking at holiday rentals, this figure can escalate to a remarkable 10% in some areas. This performance gap is a magnet for homeowners. In fact, the number of dwellings destined for Flexible Accommodation holiday season has seen an increase of 25% in the last yearThe EU is a clear response to these economic incentives.
This expansion is mainly concentrated in the consolidated tourist areas and the large citiesThe geography of holiday rentals is, to a large extent, the geography of the Spanish tourist attraction. The geography of holiday rentals is, to a large extent, the geography of Spanish tourist attractiveness.
A crucial aspect that is often overlooked is the predominant profile of the owner. Contrary to some perceptions, the 80% from the owners advertising holiday homes have only one property. This underlines that the basis of the Flexible Accommodation The vast majority of Spain's holidaymakers are individual landlords or small landlords. This atomisation has significant implications for the effectiveness of regulatory policies.
Precisely, the Housing Act and regional and municipal regulations are generating a paradoxical effect in some areas. Price restrictions and legal uncertainty in long-term renting have led, in certain areas, to a transformation from long-term to holiday rentalsexacerbating the shortage of residential supply. At the same time, the price of holiday rentals has risen by 15% on average in the last yearreflecting strong demand and the market's response to pressures.
This regulatory scenario, with licence closures in some municipalities and the consequent risk of increased illegal supply in others, creates an uncertain environment for small landlords. Demand, both domestic and international, remains robust, but the balance between control, profitability and housing availability becomes a major challenge.
Fotocasa's analysis shows that the Flexible Accommodation is a vibrant and essential component of Spanish tourism, driven by thousands of individual owners. The effectiveness of future regulations will depend on their ability to understand this market structure, seeking solutions that allow for coexistence and professionalisation without undermining the economic and social value that this sector brings to the country.
