Spain’s Holiday Rental Market Falls by 11%: What Property Owners and Investors Need to Know

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

For property owners, buyers and investors, this is an important signal. The market is not disappearing, but it is becoming more regulated, more selective and more professional.

At Geres Group, property owners and international buyers can receive professional guidance when reviewing the rental potential, legal position and long-term strategy of a property in Spain. The existing Geres Group blog style uses clear service-led articles with practical headings and direct links between market guidance and Geres Group services.

 Spain Remains a Strong Property Market

Spain continues to attract buyers and investors from across Europe and beyond.

Popular buyer markets include:

• United Kingdom
• Germany
• France
• Belgium
• Netherlands
• Scandinavia
• United States

Many international buyers are still looking for:

• holiday homes
• sea-view apartments
• luxury villas
• rental investment properties
• relocation properties
• retirement homes

This continued demand means Spain remains one of Europe’s most attractive property markets. However, the way properties are rented, managed and assessed is changing.

Holiday Rentals Are Becoming More Regulated

The reduction in holiday rental properties reflects a wider shift across Spain.

Local authorities, communities of owners and regulators are placing more focus on short-term rentals. Licensing rules, community restrictions, tax obligations and housing pressure are now playing a much bigger role in the market.

For owners, this means that a property should not be treated as a holiday rental investment without proper checks.

Before renting out a property, it is important to review:

• whether tourist rental activity is legally permitted
• whether the community of owners allows holiday rentals
• whether the property has or can obtain the correct licence
• whether local restrictions apply
• whether the expected rental return remains realistic
• whether taxes and operating costs have been considered

A property may look attractive online, but the legal and financial position must always be reviewed carefully.

What This Means for Property Owners

For existing owners, the fall in tourist rental properties can create both challenges and opportunities.

Owners who do not have the correct licence, clear documentation or professional management may find it harder to operate successfully. At the same time, compliant and well-managed properties may become more attractive as weaker or non-compliant listings leave the market.

Professional preparation is now more important than ever.

Property owners should consider:

• reviewing their current rental licence
• checking community rules
• updating property documentation
• improving presentation and maintenance
• reviewing net rental profitability
• working with trusted local professionals

A well-prepared property gives owners stronger control and helps protect long-term value.

What This Means for Buyers and Investors

For buyers, the message is clear: do not rely only on the phrase “ideal for holiday rentals”.

A property may be located in a popular tourist area, but that does not automatically mean it is suitable for short-term rental activity. Before buying, investors should understand the full picture.

Important checks include:

• legal rental viability
• local licensing requirements
• community restrictions
• expected occupancy
• annual costs
• tax position
• management requirements
• resale potential

A good investment decision should be based on verified information, not assumptions.

Professional Property Management Matters

As the holiday rental market becomes more professional, property management also becomes more important.

International owners often live outside Spain and need reliable local support to keep their property ready, compliant and well maintained.

Professional property management can help with:

• keyholding
• maintenance coordination
• guest preparation
• inspections
• contractor management
• cleaning coordination
• utility checks
• owner communication

This is especially valuable for non-resident owners who want peace of mind while their property is being rented, maintained or prepared for sale.

A More Selective Market Can Create Opportunity

A falling number of holiday rental properties does not necessarily mean fewer opportunities.

Instead, it may mean that the market is becoming more selective. Properties with the right location, correct legal position, strong presentation and professional management may stand out more clearly.

For serious investors, this can be positive.

The best opportunities are likely to be properties where:

• the rental use is legally clear
• the property is well presented
• the location has strong demand
• the numbers are realistic
• the management structure is reliable
• the long-term strategy is defined

Good advice at the beginning can prevent costly mistakes later.

How Geres Group Can Help

At Geres Group, we help property owners, buyers and investors make informed decisions in Spain.

Our team can assist with:

• property sourcing
• sales guidance
• rental viability checks
• property management
• keyholding
• coordination with legal and tax professionals
• international buyer support
• investment strategy

Whether you already own a property in Spain or are considering buying one, professional guidance can help you understand the market, reduce risk and make better decisions.

Make Better Property Decisions in Spain

The 11% fall in Spain’s tourist rental market is a clear sign that the property landscape is changing.

Holiday rentals still have a place in the Spanish property market, but success now requires more than location. Owners and investors need to understand regulations, community rules, licences, taxes, costs and professional management.

With the right advice, a changing market can still offer strong opportunities.

If you are thinking about buying, selling or renting out a property in Spain, Geres Group can help you review your options and move forward with clarity.