In a strange paradox, Valencia, together with Malaga and Sevilla, offers more holiday apartments than hotel rooms
The growth of number of holiday apartments in Spain is rapidly reshaping the accommodation landscape, rivalling hotels in many major cities. Cities like Malaga, Valencia, and Seville have witnessed a surge in holiday apartment offerings, with Malaga standing out as a prime example.
The city currently has 39,622 available spots in holiday apartments, almost tripling the 14,122 spaces found in traditional hotels, hostels, and boarding houses. This phenomenon is indicative of a broader national trend, where tourist apartments have expanded by 16.6% across Spain’s 25 largest cities, while hotel accommodations have only grown by 1.6%.
Madrid and Barcelona lead the country in terms of holiday apartment spaces, with 84,713 and 60,840 units respectively, showing growth rates of 25% and 8.6%. Yet despite this influx, the total number of hotel rooms in these cities still surpasses that of holiday apartments.
In Madrid, for instance, hotels offer 92,474 spots (a 1.5% increase), and in Barcelona, hotels maintain 96,926 spots, showing a modest 1.4% growth. While hotels continue to expand, the much faster growth of holiday apartments has started to blur the lines of traditional tourism infrastructure.
The expansion of holiday apartments in Spain is not without controversy. Many of these rentals operate illegally, without regulation, raising concerns about their impact on local housing markets, particularly in historic urban centers. These unregulated rentals have contributed to rising rents and increased housing pressure, particularly in densely populated tourist hubs.
Local communities and business owners have voiced their discontent, with some regions experiencing significant backlash. Cities such as Barcelona, the Canary Islands, and the Balearic Islands are among those struggling to balance tourism demand with housing needs. The strain on local services, infrastructure, and historic areas has become particularly pronounced in these destinations.
In response to these challenges, several Spanish cities have started implementing stricter regulations on holiday apartments. San Sebastian, Palma de Mallorca, and Pamplona are examples of cities where authorities have introduced regulatory measures to control the proliferation of tourist accommodations.
These regulations aim to alleviate pressure on housing markets and mitigate the negative impact on local communities. In cities where such limits have been enforced, the backlash from residents has begun to ease, offering some hope of a more balanced approach to tourism development.
The rise of number of holiday apartments is closely tied to Spain’s success as a global tourist destination. Tourism in Spain continues to perform exceptionally well, exceeding expectations and driving significant economic growth. Between July and September 2024 alone, the tourism sector generated around €77.1 billion, marking a 4.8% increase compared to the same period in 2023.
This growth is expected to continue into the final quarter of the year, with a projected 5% increase in overall tourism-related revenue. For the full year, Spain’s tourism sector is expected to contribute €207.9 billion to the economy, accounting for 13.4% of the country’s GDP.
While holiday apartments have played a crucial role in supporting Spain’s tourism industry, they have also highlighted the need for better regulation and a more sustainable approach to growth.
The growth of number of holiday apartments has not only affected the availability of housing but also impacted the hotel industry. Despite a 14% increase in the number of hotel beds in Malaga compared to 2019, the average hotel occupancy in the city during the summer of 2024 was nearly 91%.
This high occupancy rate, combined with the expansion of holiday apartments, underscores the ongoing pressure on traditional hotel accommodations to compete in a rapidly changing market.
In addition to holiday apartments, other forms of tourist accommodation, such as student residences, have also contributed to the overall demand for housing in Spain’s key cities. With more students and young professionals moving into cities like Malaga and Valencia, there is a pressing need for more diverse and affordable housing options. This trend is expected to continue as Spain’s universities and job market attract more international talent.
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.
© Holiday Apartments Surge to Rival Hotel Capacity In Valencia – valenciaproperty.es
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