Housing market analysis examines role of tourist rentals in Spain

Recent analyses regarding the housing crisis in Spain suggest that tourist accommodations may play a smaller role in market tension than often claimed. In the Basque Country, tourist homes represent approximately 0.4% of the total residential park, with roughly 5,072 units recorded as of May 2024. This figure is lower than the European average of 1.2% and comparable to major cities like Madrid, Paris, and Amsterdam. However, experts warn that these averages can mask high concentrations of tourist rentals in specific municipalities, leading to risks of gentrification and “touristification.”

In the Canary Islands, the Economic and Social Council (CES) has addressed the legal limitations of intervening in the housing market. The CES emphasizes that European Union regulations prevent local administrations from banning property purchases based on nationality. Furthermore, while limiting tourist uses of properties is possible, it requires strict justification through objective data proving residential pressure. The council notes that the decline in long-term rentals is often driven by legal insecurity and slow judicial processes regarding evictions rather than the availability of vacation rentals.