Seasonal rentals show strong growth dynamics
Seasonal rentals in Spain are overtaking long-term rentals in terms of popularity. In Q4 2023, the share of the short-term rental sector was 11%, while the supply increased by 58% compared to 2022. As for long-term rentals, the number of available properties decreased by 15% over the period.
Most travellers prefer to rent accommodation for a few nights in the following cities:
1. San Sebastian. Here, 32% of all properties are short-term rentals.
2. Barcelona, where seasonal properties account for 30% of the total properties in the sector.
3. Cadiz with 22%.
4. The Valencia market offers 15% of the total number of properties for short-term rentals.
5. Malaga and Madrid (14% and 13% respectively).
In Santadera, Palma, Alicante and some other cities, the share of seasonal rentals is between 10% and 12%.
The seasonal rental of Malaga dwellings showed the country’s best growth dynamics. Here, the indicators for the quarter rose by 123%. In second place is Valencia with 99%, and Alicante with 85%.
In Madrid, the supply in this sector showed an increase of 58% over 2023. In Barcelona, the number of properties will increase by 53% and in San Sebastian by 47%.
The experts were surprised by small markets where short-term rentals were not previously in high demand. Among them:
– Badajoz, where the increase in supply over the year totalled 1133%;
– Lerida, where the number of properties in the sector increased by 1000%;
– the Ciudad Real market saw growth of 500%.
However, there were also regions where the number of short-term rentals fell. There were falls in 6 Spanish cities, including:
– Zamora, where supply dropped by 60%;
– Teruel, where the number of homes decreased by 50%;
– Leon – a fall of 44%.
In some cities, on the other hand, long-term rentals predominate. These places are Melilla, Caceres, Ciudad Real, Ourense, Logroño and others.
Broadly speaking, the seasonal rental market in Spain is mixed. However, the leap in its development compared to the long-term rental market indicates a change in consumer preferences.
How the long-term rental sector has changed
Along with the growth in seasonal rentals, long-term rentals have declined in almost all of the country’s key markets. Experts recorded the most significant drop in Bilbao, where supply fell by 38%. This was followed by San Sebastian and Seville, with an indicator of 32%. However, there were also cities where the sector recorded a slight increase. In Valencia and Alicante, for example, the supply of long-term rentals rose by 4%. In Malaga, it grew by 2%.