Las Palmas de Gran Canaria experienced the most significant decrease in long-term rentals among Spanish capitals in the third quarter of the year, with a 42% drop compared to the same quarter last year, according to a study by ‘Idealista‘.
Following the capital of Gran Canaria are Bilbao (-32%), Granada (-30%), Ourense (-28%), Zamora (-27%), and Madrid (-26%). Compared to the previous quarter, rents also declined in Palma, where the offering decreased by 19%, Las Palmas de Gran Canaria (-18%), Cordoba (-14%), Oviedo (-14%), Castellón de la Plana (-12%), and Bilbao (-10%), while Valencia (+7%) and Seville (+13%) are the only major markets where supply increased.
In the seasonal rental segment, there was a 39% increase in the third quarter of the year, following its approval last May. It now accounts for 10% of all properties on the market, while permanent rental homes fell by 1% between July and September, accumulating a year-on-year drop of 12%.
The real estate portal notes that seasonal rentals are not intended for “permanent” housing needs but serve as accommodation for a specific period. Thus, they fall outside the Housing Act’s scope and are not subject to limitations on rent updates or extraordinary contract extensions, unlike permanent rentals.
“As we predicted, the final effect of the Housing Law is perverse and the exact opposite of what was desired: less product on the market, higher prices, and much more pressure and difficulty in accessing housing,” lamented Idealista spokesperson Francisco Iñareta.
THE SUPPLY OF TEMPORARY RENTALS RISES BY 126% IN MALAGA
The most significant increase in seasonal supply was in Malaga, with 126% more than the previous quarter, followed by Seville (+93%), San Sebastian (+55%), Valencia (+49%), Alicante (+46%), Barcelona (+45%), and Bilbao (+41%).
Conversely, temporary rentals decreased in only two capitals during these three months: Zamora (-60%) and Palencia (-12%).
However, San Sebastian has the highest concentration of temporary housing, with 32% of properties offered in this mode, while 28% of the total in Barcelona are offered this way. They are followed by Cadiz (17%), Santander (16%), Malaga (15%), and Tarragona (15%).
In less stressed areas, this temporary mode is almost non-existent, as in 16 capitals its market share is around 1%.
Specifically, these are the cities of Albacete, Ciudad Real, Ourense, Logroño, Lleida, Guadalajara, Cáceres, Salamanca, Melilla, Zamora, Valladolid, Badajoz, Teruel, Palencia, Murcia, and Segovia.
Parallel to this growth, long-term rentals continue to decline since the Housing Law’s approval, with six capitals experiencing more than a 10% reduction in available supply this quarter.
