Spain’s tourism industry is flying, but it’s not just filling beaches, it’s putting pressure on housing too.
Sunshine buyers
In the Balearics during 2024, more than 25% of homes were snapped up by non-resident foreigners. Along the coast it was much the same…20% in the Canaries and Valencia, 15% in Murcia, 10% in Andalusia.
Nationally, on average, about 8% of all property purchases are carried out by non-resident foreigners.
Great for sellers, not so great if you’re a local buyer.
Tourism lets taking over
Short-term rentals are also swallowing up stock.
Tenerife? Nearly 5% of all properties on the island are used for rentals aimed at tourists.
And it’s a similar figure throughout all of the islands but when you bring that down to specific areas, like Costa Adeje for example, over 20% of all properties in the municipality are rented to tourists.
No wonder affordable long-term housing feels scarce in those areas.
The paradox
Tourism pumps over 12% into Spain’s economy – in the Canary Islands, estimates range from 35% to 70%.
This all keeps the current account healthy, but it brings with it congestion, low productivity, and a heavy reliance on low-paid labour.
The bottom line
The Bank of Spain says it’s simple: growth is fine but it has to be sustainable, balanced, and mindful of locals’ housing needs.
Otherwise, the golden goose might just wear out its welcome.
So, are the local and national governments going to continue ignoring it and lining their own pockets or will there be some hard changes in the coming years?…personally, and I know this is my business…but I’d like to see some hard changes in favour of locals.
There are too many short term rentals being run under the radar, not registered, not paying tax, some iof the accommodation is absolute crap, with holiday makers having little to no redress if it’s not up to standard.
It’s time that the governments took more control of the holiday rental sector and also did something about social housing to redress the balance.
