Spain tourism growth projected to drive up annual rents by €217

Spain is facing significant pressure from record-breaking tourism levels, impacting both the economy and local residents. A report by Transport & Environment and the New Economics Foundation estimates that growth in air tourism could increase annual rents by an average of €217 by 2031. This trend is expected to place an additional financial burden of €648 million on renters across the country, with the Balearic and Canary Islands facing the most acute increases.

Industry leaders are also noting the physical limits of the market. Sebastian Ebel, CEO of TUI, stated that Spain is “well-booked, quite often sold out,” suggesting that the country is hitting capacity limits. Despite welcoming a record 97 million international visitors in 2025, the surge in volume has contributed to declining public reputation for the tourism sector due to resident resentment regarding overcrowding.