The relentless boom in tourist apartments in Spain is squeezing out locals from the housing market, particularly in holiday hotspots.
That was the takeaway from a talk by Angel Gavilan, chief economist at the Bank of Spain, during the first-ever INE-IEGD-CSIC summit on tourism statistics.
According to the Bank, tourism’s explosive rebound is bringing with it some ‘negative externalities’.
Chief among these is the shrinking availability of rental homes for residents in hot zones like the Costa del Sol.
In Marbella, for example, tourist lets now make up more than 60% of the total housing supply, and over 50% in its outskirts.
The concerning figures come amid increasing reports of people sleeping in tents on Marbella beaches. Photos shared online this week showed multiple tents pitched up on La Bajadilla beach.
The numbers are nearly as stark in Malaga city, where Airbnb-style properties represent over 20% of housing in the centre, and again, over 50% outside it.
Nationally, some areas are even worse off: in the outskirts of Elche (Alicante), the proportion hits nearly 70%, according to data from Spain’s National Statistics Institute and the Bank of Spain, comparing 2023 tourist housing with the last residential rental figures from 2021.
Also showing signs of strain are the outskirts of Gijon, Mallorca, Vigo, Alicante, and Santander, all clocking in above 20%.
Local authorities, meanwhile, are still scrambling to respond. Marbella’s City Council announced in February the creation of a registry for tourist flats and plans for a future ordinance to limit the conversion of commercial premises into vacation rentals – but it ruled out capping their total number.
In Malaga, Mayor Francisco de la Torre floated a so-called ‘global moratorium’ on new tourist licenses back in March, although this has yet to be clarified nor approved (although there is a ban on new tourist flat licences over the next three years).
Foreign buyers making matters worse
On top of the tourist rental surge, the Bank of Spain points to a rising tide of foreign buyers snapping up properties.
In 2024, over 25% of all home sales in the Balearic Islands were made by non-resident foreigners.
The Valencian Community and Canary Islands weren’t far behind, both at or near 20%. Even in regions like Murcia (15%) and Andalucia (10%), foreign demand is reshaping local markets. Nationwide, foreigners made up around 8% of buyers last year.
The report also flags other pressures tourism is placing on the country, including urban congestion, resource depletion, and a housing market increasingly skewed towards non-residents.
Yet amid the warning signs, tourism remains a juggernaut. Gavilan noted it has bounced back to pre-pandemic levels, contributing over 12% to GDP and employment – roughly where it stood in the 2016–2019 period.
But the Bank warns of deep-rooted problems: sluggish productivity, weak investment, and a reliance on low-paid, low-skilled labor – often young or foreign.
Still, there are bright spots. The sector is diversifying both geographically and seasonally, hotel quality is improving, and tourism’s contribution to the current account surplus is growing.
Spain, for now, holds onto its crown as the world’s number-two tourist magnet behind France, and remains one of the Mediterranean’s most competitive markets, at least according to the World Economic Forum.
