Over the past five years, Las Palmas de Gran Canaria has experienced a significant decline in the availability of long-term rental housing, with a 51% reduction, positioning it as the fourth highest among Spanish cities for such declines. This trend is outpaced only by Barcelona, which leads with a 75% reduction, followed by Oviedo at 55% and San Sebastian at 54%, according to the real estate portal Idealista.
This decrease in long-term rentals contrasts sharply with the surge in seasonal rentals across Spain. These rentals, designed for temporary housing needs such as holidays, work assignments, or specific seasons like skiing, have risen dramatically by 232% over the same period, now comprising 14% of the total rental market.
Significant growth in seasonal rental offerings is particularly notable in larger real estate markets. Malaga has seen the most substantial increase at 466%, followed by Alicante (309%), Seville (279%), Valencia (276%), Barcelona (244%), Bilbao (217%), and Palma (208%). On the other hand, cities like Madrid and San Sebastian have experienced less dramatic increases, at 159% and 136% respectively.
Barcelona stands out for the highest proportion of seasonal rentals, which constitute 46% of its total rental market. Other cities with significant shares include San Sebastian (38%), Badajoz (30%), and Tarragona (26%). At the opposite end of the spectrum, cities like Ciudad Real, Melilla, Guadalajara, and Ourense have minimal seasonal rental presence, with only 1% market share.
Interestingly, cities such as Jaén, Murcia, Tarragona, Granada, and Castellón de la Plana have seen meteoric rises in seasonal rental offerings from previously almost non-existent levels, showcasing how rapidly the market can evolve.
Conversely, the availability of long-term rentals has generally decreased across Spain. Today, there are 33% fewer properties available for long-term rental than there were five years ago, with cities like Madrid and Palma both seeing reductions of around 46%. The decline in permanent rentals is also prominent in other cities including Girona, Bilbao, and Valencia, among others.
However, some cities have seen growth in their long-term rental markets. Huesca leads with a 112% increase, followed by Jaén at 55%, and smaller increases in Lugo, Cáceres, Cádiz, Teruel, and Murcia.
This shift in the rental landscape is attributed by Idealista to various government regulations, with calls from the real estate sector for a reversal of many of these policies to restore balance to the market.
Looking at the most recent data from the last 12 months, the overall supply of long-term rentals in Spain has decreased by 5% compared to the previous year. Barcelona continues to see the largest reduction at 38%, while Cuenca exhibits the most significant increase in supply, up by 27%.
In contrast, seasonal rentals continue to surge, with Palma leading the growth at 47% more than the previous year, indicating a dynamic and rapidly changing landscape in the Spanish rental market.
