Spain's permanent rental supply falls by another 15% while seasonal soars by 56%

Seasonal rentals keep gaining relevance in the real estate market to the detriment of permanent rentals, as a consequence of the successive policies that are driving this phenomenon. In the first quarter of 2024, this rental type accounted for 11% of the market, with a year-on-year increase in supply of 56%, while the permanent rental supply fell by 15% in the same period.

In San Sebastian and Barcelona, 30% of the properties available are seasonal rentals, while the figure for Cadiz is 21%. They are followed by Badajoz (18%), Madrid (15%), Valencia (13%) and Malaga (13%). Below this figure are Palma, Santander and Bilbao (11% in all three cases).

By contrast, this temporary modality is practically non-existent in less stressed areas, as it accounts for around 0% of the market in five provincial capitals – Soria, Lugo, Ceuta, Ourense and Guadalajara. Seasonal rentals represent 1% of the market in provincial capitals Ciudad Real, Melilla, Teruel and Palencia.

Sharp rises in seasonal rental volumes

Among the major markets, the biggest increase in seasonal supply has been in Palma and Malaga, which have 79% more than a year ago, followed by San Sebastian (77%), Seville (74%), Valencia (62%), Madrid (56%) and Barcelona (53%). In Bilbao, meanwhile, temporary rental supply has grown by 49% in the last 12 months, while it has increased by 29% in Alicante.

The largest and most dramatic increases in this type of supply have occurred in small markets where this phenomenon was practically non-existent before and where the appearance of a handful of listings has led to very pronounced rises. These are the cases of Badajoz (2,560%), Caceres (800%), Huelva and Lleida (650% in both cases). On the other hand, in four provincial capitals, temporary rentals have fallen this year: Lugo (where they have disappeared), Teruel (-67%), Palencia (-33%) and Avila (-33%).

Permanent rental supply continues to fall

In parallel to this growth, long-term rentals have continued to fall over the last year in the main markets. The biggest decline is in Bilbao (-33%), followed by Seville (-27%), Madrid (-24%), San Sebastian (-22%), Palma (-20%) and Barcelona (-15%). Even so, two large markets saw their supply grow slightly: Valencia (4%) and Malaga (2%), while Alicante has remained stable. Among the other cities, the biggest falls were in Cordoba (-66%), Oviedo (-46%), Palencia and Avila (-41% in both cases), while the biggest rises were in Cuenca (35%), Girona (23%), Soria (17%), Almeria (15%), Huelva (13%) and Teruel (11%).

For idealista spokesperson Francisco Iñareta, "The first quarter data continue to show that legislating behind owners' backs ends up destroying the market. The measures adopted for rentals have shifted the offer from permanent rental to seasonal rental, a perfectly legal formula, but one that makes access to housing even more difficult for the most disadvantaged individuals and families.

After all, it is obvious that the origin of the rental problems is not in prices, but rather the huge supply deficit, which generates price tensions and anxiety in families who experience stiff competition with dozens of other families. The situation calls for rebalancing landlord-tenant relations, which will release more product onto the market and allow the situation to normalise".

Data compiled and analysed by idealista/data, idealista's proptech, which provides information for a professional audience to facilitate strategic decision-making in Spain, Italy and Portugal.  It uses all the idealista database parameters in each country and other public and private data sources to offer valuation, investment, recruitment and market analysis services.

What are seasonal rentals?

Seasonal rentals are those not intended to satisfy a permanent housing need but serve as accommodation for a very specific period (usually less than a year). They are regulated by the will of the parties, the Ley de Arrendamientos Urbanos (Urban Leases Act) and the Código Civil (Civil Code). They are outside the application of the recent Housing Law, so they are not affected, among other aspects, by limitations on rent updates or extraordinary contract extensions. This has meant that they have had a greater impact on large markets and, above all, on those in which public managers have announced an interest in applying effective price control (particularly in the so-called stressed areas).