Spain’s Tourist Accommodation Market Plummets to Lowest Level in Two Years: Over Three Hundred Twenty-Nine Thousand Properties Vanish Amid New Regulations

Spain’s housing market is experiencing a dramatic shift, as over three hundred twenty-nine thousand tourist flats have vanished nationwide, signaling a severe decline in short-term rentals. This sudden downturn, which marks a staggering loss in the holiday home sector, can be attributed to the introduction of stricter regulations and the enforcement of a nationwide rental register. While most regions across Spain are grappling with this significant loss, Andalusia has managed to remain a rare exception, showing resilience against the broader decline. This crisis has sparked debates on the long-term implications for Spain’s housing landscape and the future of short-term rentals, especially in major tourist hubs.

The number of active tourist accommodations in Spain has experienced a significant drop, according to the latest data from the Spanish Statistics Institute (INE). As of November 2025, there were 329,764 holiday flats across the country—marking a 12.4% decrease from 376,463 in the same month the previous year. This drop also represents a 13.6% decline from May 2025, just before the short-term rental register came into effect.

This reduction in the number of tourist flats is the lowest level since February 2023, based on INE’s historical data, which began tracking during the pandemic. The total number of units is down by 18.2% from the peak recorded in August 2024, which saw over 403,200 holiday flats in Spain. The decrease in the number of properties is compounded by a drop in capacity, as the number of beds in these accommodations fell by 14%, from 1.89 million in November 2024 to 1.62 million in November 2025. The average number of beds per property also decreased, from 5.04 to 4.93 beds.

Andalusia stands out as a notable exception in the midst of this national decline. The region reported a slight year-on-year increase of 1.2% in the number of tourist flats, totaling 91,757 units in November 2025. This made Andalusia the leading autonomous community in Spain for tourist accommodations, counteracting the national downward trend. Other regions, however, experienced sharp declines, particularly in Catalonia, where the number of tourist flats dropped by 11%, and in the Valencian Community, which saw a 25% fall. The Canary Islands also faced a decline of 3%, while the Balearic Islands, Galicia, and Madrid all witnessed notable reductions in their stock of holiday homes.

At the provincial level, Málaga maintained its position as the leader in the number of tourist flats, with more than 48,200 units. It was followed by Alicante, which had nearly 30,000 units, and Las Palmas with 27,336. Other provinces, including Barcelona, Girona, Tarragona, and A Coruña, also contributed to Spain’s top 20 markets, while some provinces reported fewer than 3,000 tourist accommodations by the end of November 2025.

The introduction of Spain’s short-term rental register in July 2025 has played a significant role in reshaping the tourist accommodation landscape. The register is mandatory for all properties intended for tourist, temporary, and room rentals. The introduction of this register is aimed at better regulating short-term rental activity across the country. Properties must obtain a registration code before being listed on digital platforms that process financial transactions. As of January 2026, 299,754 properties had received the Short-Term Rental Number (NRUA), while 16,581 held provisional codes.

Notably, 84,250 applications for registration had been rejected, indicating a 21% rejection rate. The reasons for rejection included the lack of a tourist licence, absence of approval from homeowners’ associations, and the fact that some properties were officially protected housing, limiting their use to primary residences. Other reasons included applications submitted by non-owners or incomplete registration details.

Despite these measures, experts argue that the reduction in the number of tourist flats is not likely to reduce rent prices. Many economists and property specialists believe that holiday rentals represent only a small segment of the housing market, and tackling the affordability crisis will require increasing housing supply rather than enforcing stricter regulations on short-term rentals. This sentiment was echoed during a conference in Barcelona in January 2026, where specialists argued that the decline in tourist flats should not be seen as a panacea for the housing crisis.

The Ministry of Housing and Urban Agenda (MIVAU) has praised the decline in the number of tourist flats, attributing it to the short-term rental register and the reform of the Horizontal Property Law (LPH). This reform, which allows homeowners’ associations to veto short-term rentals, has been credited with helping to preserve the social function of housing. The MIVAU claims that the reduction of illegal tourist rentals will help mitigate rising property prices, which have pushed many locals out of their communities and contributed to gentrification.

While these government measures may have reduced the number of tourist flats, the wider impact on the housing market remains uncertain. The focus, according to critics, should be on boosting the supply of housing rather than restricting short-term rentals, which represent a small portion of the overall housing stock. As the debate over the future of short-term rentals continues, experts agree that any solutions to Spain’s housing challenges must consider both the demand for tourist accommodations and the broader need for affordable housing for residents.

While the reduction in the number of tourist flats in Spain is a significant development, it is part of a broader regulatory shift aimed at addressing concerns about housing affordability, gentrification, and the impact of tourism on local communities. The full consequences of these changes, however, are yet to be seen, and experts suggest that more comprehensive measures, such as increasing housing supply, are necessary to tackle Spain’s housing crisis.

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