The clatter of suitcases, conversations in many languages, and cameras everywhere signal a lively return to Spain’s travel scene. As Covid-19 restrictions eased, tourism surged through the streets of Spain’s major cities. Entrance surveys of foreign visitors show a strong rebound: seven million international arrivals in May, a dramatic rise from the previous year and approaching pre-pandemic levels. The country logged substantial spending, with total international expenditure reaching around 26 billion euros in the period reported.
Accommodation patterns shifted as well. Not all visitors chose hotels. Recent data from the National Statistics Institute reveal that September saw 12.8 million overnight stays in tourist homes, up from 10.5 million in the same month last year. Over the year, demand for these stays rose by more than 60 percent. Although tourist homes are spread across many cities, activity concentrates in the neighborhoods that are most popular with travelers.
Seville’s historic center, particularly the Santa Cruz district, emerged as an early leader in tourist housing. By 2019, more than half of the local housing stock in that area was allocated to tourist use. A comprehensive industry report from Exceltur, an association of major players in hospitality and aviation, places Seville ahead of Madrid’s Sol neighborhood in terms of tourist housing share. In Madrid, the central district around Sol represented a sizable portion of available housing allocated for tourism, with significant percentages also noted in other central neighborhoods.
Two Sevillian neighborhoods followed in the rankings: Alfalfa and El Arenal, each with substantial shares of housing dedicated to vacation rentals. Valencia joined the list with the El Mercat district, where a notable portion of the local real estate stock is used for tourist purposes.
Concentration of tourist homes
The growing presence of tourist homes in Spain’s cities mirrors a broader shift in accommodation options, and it has sparked discussions about housing access in major urban areas. After the pandemic lull, a total of 73,894 tourist-use properties were retained in 2022, a reduction from the previous year but still indicating persistent demand for short-term stays.
Housing shortages have influenced pricing and availability. Between 2010 and 2019, central neighborhoods experienced higher rate increases in rents than other parts of cities, and tourism-related demand has been linked to the displacement of residents in some touristic areas. The dynamics of supply and demand in these popular districts continue to shape urban living and the rental market across Spain’s largest cities.
Looking at income implications, tourist rentals can yield higher returns for property owners compared with traditional residential rentals. For a typical 80-square-meter apartment accommodating four people, the net income after taxes can be notably higher for short-term tourist stays, underlining why many property owners consider this option as part of their investment strategy.
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