Spanish rental market regulations and supply shifts

New housing regulations in Spain are altering rental contract terms, allowing tenants to terminate agreements without paying compensation under specific conditions. To avoid indemnity fees, tenants must have completed at least six months of the lease and provide a minimum of 30 days' notice to the landlord.

In the Canary Islands, there has been a modest increase in residential rental supply. The number of homes available for long-term lease rose by 2,444 units compared to the end of 2025, bringing the total to 35,800. This trend coincides with a decrease in vacation rentals. However, despite the increased availability, rental prices remain high due to intense demand, with an average of 110 potential tenants expressing interest in each listed property within a ten-day period.