Restrictions on tourist flat rentals and concerns over squatting or rent defaults could result in hundreds or thousands of tourist flats being put up for sale, according to real estate firm K&N Elite.
The new regulations aim to curb the expansion of Tourism Use Housing (VUT) and reduce its negative impact. However, their enforcement has been inconsistent, and there is no guarantee that properties exiting the tourist market will be converted into rental housing.
In 2024, more than 350,000 tourist flats are anticipated, with notable growth in regions like Andalusia, Catalonia and the Balearic Islands. In areas such as Santa Cruz, Seville and central Madrid, "touristification" has led to a high concentration of VUTs, surpassing 60% of the residential stock in some cases.
Impact on the rental and sales market
The surge in tourist flats has directly impacted the rental market, causing a shortage of available rental properties and driving up prices. In cities like Seville and Barcelona, rent has increased by nearly 10% in areas heavily affected by the rise of VUTs.
Additionally, the higher profitability of tourist properties, combined with concerns over squatting and rent defaults, has led many owners to favour tourist rentals. In popular destinations such as the Costa del Sol and the Balearic Islands, the average monthly income from a tourist flat can exceed €2,500 – significantly more than from traditional rentals.
Regulatory measures
In response to the rise of tourist flats and their impact on the real estate market, both central and regional governments have introduced regulations to control this activity. A key initiative has been the amendment of the Horizontal Property Law, enabling residents' associations to veto tourist rentals within their buildings if they secure a qualified majority of three-fifths of owners. This measure seeks to balance property owners' rights with community interests and to mitigate the disturbances often associated with tourist activity in residential areas.
In cities like Madrid, the City Council has ramped up sanctions on landlords operating illegal tourist flats, with fines reaching up to €400,000 for the most severe violations. Meanwhile, in the Canary Islands, a draft law mandates that at least 90% of residential land be reserved for permanent housing and prohibits the use of subsidised housing for tourism purposes.
Tourist flats contribute significantly to the local economy, injecting billions of euros through spending on accommodation, dining and leisure. However, these economic benefits are often accompanied by negative social effects, such as the desertification of traditional neighbourhoods and heightened tensions between residents and tourists.
Future challenges
The future of tourist flats in Spain hinges on striking a balance between the economic benefits of tourism and the need to protect housing rights. New regulations seek to curb the expansion of VUTs and reduce their negative impacts. However, implementing these measures has proven difficult due to inadequate enforcement and inspections. Additionally, there is significant uncertainty about whether properties removed from the tourist market will genuinely be converted into residential rentals.
The 10 most expensive cities to live in Spain in 2025
If there’s one clear trend in Spain’s housing market, it’s rising prices, both for buying and renting. While the rankings of the most expensive cities remain relatively stable, the cost of living in them is becoming increasingly out of reach.
Tini Menorca, the award-winning prefab home on the Balearic Islands
Discover this prefab home perched on a hillside, surrounded by pines and Menorcan ullastre trees, offering an unrivalled panoramic view of the Mediterranean.
What to keep in mind before buying a prefabricated home in Spain
More and more people are considering a prefabricated house as their next home in Spain. These properties are typically built faster than traditional homes and often come with fixed prices and no hidden costs.
Five Torremolinos plots released for over 200 subsidised homes
Torremolinos City Council has launched the sale of five municipal plots, covering nearly 11,500 m², for the construction of over 200 publicly subsidised homes (VPO). According to Málaga’s Councillor for Urban Regeneration, Marina Vázquez, only 100 VPO units have been built in the past 30 years, making this initiative an “important step” towards improving access to affordable housing for many families in this Málaga town. The total value of the plots is close to €9 million.
Urgent property sales in Spain
Buying property in Spain is a dream for many, but the process can often be time-consuming and expensive. With summer now in full swing, there’s no better moment to secure your perfect home and start enjoying the sunshine right away. Luckily, urgent property sales offer a quick and cost-effective way to find fantastic deals within days or weeks.
Spain solidifies its lead as Europe’s top real estate market in 2025
The European real estate market is set to enter a phase of moderate recovery in 2025 after two years of correction, with Spain emerging as one of the best-positioned countries to benefit from this new cycle, according to the Global Trends and Tactics Q1 2025 report by Nuveen Real Estate.
