Macro tourism data in Spain 2025: Impact on vacation rentals

• Tourism generated €207.763 billion in 2024, representing 13.1% of Spain's GDP (Source: Exceltur / INE).
• The sector recorded a +16.5% increase in revenue thanks to the surge in foreign demand.
• 94 million international tourists visited the country in 2024, and the figure is expected to exceed 98 million in 2025.

This sustained demand directly fuels the vacation apartment rental market, especially in urban and coastal areas such as Málaga, Barcelona, and the Balearic Islands.

This growth not only reflects a post-pandemic recovery but also a new consolidation cycle driven by international tourism and the expansion of alternative accommodation models such as vacation rentals.

Growth of the Tourist Use Housing (TUH) stock in Spain

The supply of TUH properties continues to grow steadily.
As of May 2025, Spain had 381,837 registered TUHs, an increase of +8% compared to 2024 (Source: INE).

This growth has led to increased regulatory pressure, particularly in urban areas with high population density and a shortage of long-term housing.

Regions such as Andalusia (96,176 TUHs), the Valencian Community (63,190 TUHs), and Catalonia (56,851 TUHs) lead in the number of vacation rental properties. Cities like Málaga (48,412 TUHs) and Barcelona (18,113 TUHs), as well as the Balearic Islands (24,361 TUHs) and the Canary Islands (50,686 TUHs), have experienced accelerated growth but also face urban planning and regulatory challenges.

This expansion is not uniform. Certain regions, such as Málaga or the Balearic Islands, have seen particularly sharp increases but also face mounting pressure to limit further growth.

Profile of the TUH tourist in Spain 2025: Habits and preferences

Understanding the profile and behavior of TUH guests is essential for adapting supply. In 2025, the TUH guest profile includes:

• International dominance: 54% of foreign demand comes from the UK, Germany, France, and Italy.
  
  
• Group and multigenerational travel: Families, friends, or intergenerational groups seeking more space and privacy than hotels.
  
  
• Increased price sensitivity: Guests compare more before booking, shorten stays, but still choose prime locations.
  
  
• Flexibility and last-minute bookings: Lead time is down to 29.5 days, reflecting more spontaneous decisions and dynamic pricing reliance.
  
  
• Seasonality still present: Summer is peak season, but autumn and spring are gaining ground due to digital nomads and remote workers.
  
  

Knowing these traits enables better marketing segmentation, dynamic pricing, and personalized services to attract bookings.

Major operators and institutional investment in vacation rentals

The TUH market is no longer dominated solely by small owners. Professional managers and institutional investors are playing an increasingly important role.

• Platforms such as Sonder, Casai, and Bob W operate as hybrids between hotels and TUHs.
  
  
• Investment funds and REITs identify urban TUHs as profitable assets.
  
  
• Some companies use revenue share or guaranteed rent agreements, bringing professional management without asset acquisition.
  
  

This shift could lead to sector consolidation, favoring the most tech-enabled and scalable operators, and increasing quality and compliance standards.

Key Trends in the Vacation Rental Sector in 2025

The vacation rental sector in 2025 is defined by five main transformation drivers:

a) Accelerated professionalization

Property owners have evolved from occasional hosts to micro-entrepreneurs in the accommodation business. Tools such as PMS (Property Management Systems), automated pricing managers, accounting software, basic utilities management platforms, and tourism CRMs enable scalable operations from the very first unit.

Technology is also enhancing the guest experience. From digital contract signing to chatbot-based support and remote door access, guests now expect a “contactless yet seamless” stay.

b) Shorter but more expensive stays

The average nightly rate for vacation rentals in Spain stands at €192 (Source: Holidu). Despite rising inflation, demand remains stable, although travelers are adjusting their habits: comparing more prices before booking, slightly shortening their stays, and showing increased price sensitivity.

Average stay length:

• 2023 → 5.24 days
• 2024 → 5.11 days
• 2025 (YTD) → 5.08 days

According to Beyond Pricing, the lead time—the average time between booking and guest check-in—currently stands at 29.5 days, a 9% year-on-year decrease.

This indicates a structural shift in guest behavior: last-minute bookings are on the rise, increasing the importance of real-time pricing adjustments to avoid revenue loss from poorly calibrated rates.

c) Growing regulatory pressure

2025 marks a turning point with the implementation of the mandatory national TUH registry starting in July. In addition, cities like Barcelona, Palma de Mallorca, and San Sebastián are tightening license requirements, reducing capacity limits, and enforcing stricter technical and coexistence standards.

High-tourism pressure areas with strong profitability for vacation rentals include:

• Barcelona: €40,260 average annual TUH income. The City Council plans not to renew 10,000 TUH licenses set to expire in 2028.
• Málaga: Significant growth and transformation of its historic center. TUHs in Málaga province have grown by 16.7% in the last 12 months (as of March 2025).
• Balearic Islands: Severe restrictions on the number of licenses and a maximum of 60 rental days per year in multi-family dwellings.
• Madrid and Valencia: Surge in mid-term rentals as a legal workaround to restrictive regulations.

The tourist profile in these areas continues to be dominated by the international market, with the UK, Germany, France, and Italy accounting for over 54% of foreign demand.

d) Rise of mid-term rentals

Mid-term rentals—contracts ranging from 1 to 6 months—are gaining relevance as a hybrid model between vacation and residential leasing, offering greater stability for owners and flexibility for tenants.

According to BrainsRE, this model is “shifting from being an intermediate solution to becoming a standalone business model.”

This trend is particularly strong in secondary and urban destinations with demand from digital nomads, relocated professionals, and short-season tourism (e.g., Málaga has seen a 37% increase in stays of over 20 nights during autumn and winter).

e) Heavy use of digital channels and platforms

The distribution and booking management of TUHs is now almost fully digitalized:

• 64.2% of vacation rental bookings are made through online platforms (Source: Statista).
• Platforms such as Airbnb, Booking, Vrbo, Rentalia, and Holidu dominate the market, with commissions ranging from 10% to 15%.
• Channel managers integrate multiple platforms without overbooking risks, optimizing occupancy and syncing with PMS and dynamic pricing systems.
• Solutions like Polaroo optimize utility contracts and provide transparency to guests, allowing them to track utility costs during their stay.

This digitalization improves operational efficiency: from automatic calendar synchronization to automated guest communication and integrated accounting management.

Conclusion: Where is the model headed?

The vacation rental market in Spain is entering a new stage of maturity. The combination of regulatory pressure, mandatory digitalization, demand segmentation, and industry professionalization is shaping a new competitive landscape.

Looking ahead to 2026, three likely scenarios emerge:

1. Consolidation scenario: Large operators and professional managers increase their market share. Service quality improves, but market access becomes more polarized.
2. Regulatory tightening scenario: Major cities heavily restrict licenses, shifting supply toward rural areas or alternative models such as mid-term rentals.
3. Competitive innovation scenario: Smaller players survive through full automation, specialization in niche markets (eco-tourism, medical tourism, creative stays), or strong personal branding.

One thing is clear: vacation rentals are no longer an alternative—they are a consolidated industry that, to thrive, must find a balance between profitability, urban coexistence, and long-term sustainability.