In the Valencia Region, alquiler homes are increasingly tied to the tourist market
Around a quarter of rental homes in the Valencia Community now function as holiday lets. The region counts 442,950 properties for rent, with roughly 105,000 of them operating as vacation rentals due to the strong profits they yield, averaging about 500 euros more per month. Real estate firms defend licensed vacation units and push for strict action against illegally operating holiday apartments, arguing that restoring a purely residential rental market would help ease price pressures.
Recent official data show that 15.7 percent of the 2,152,490 households in the Valencia Community rent their homes, according to the latest figures from the National Institute of Statistics published in July 2024. In detail, 337,950 families rent in the provinces of Valencia, Alicante, and Castellón. Over the past two years, there has been a significant shift of homes from the residential market to the vacation segment, and the Generalitat Valenciana reports 105,000 properties licensed for tourism activity.
Industry voices note that the growth of vacation listings has intensified the rental squeeze, particularly in the large cities of Valencia and Alicante. Nora García, president of the Association of Real Estate Companies of the Valencia Community, pointed out that the central problem is the absence of supply. There is strong demand and limited housing options. The Asicval leader represents around four hundred real estate agencies and emphasizes that a return of approximately 3,000 illegally operated tourist flats in Valencia could relieve market tension and restore normal conditions for renters.
Residential rental availability in the Valencia Community has fallen by about 40 percent in the past year, while demand has risen by around 23 percent, according to Asicval. In the three provincial capitals and other towns with more than 50,000 inhabitants, rents typically exceed nine hundred euros per month as a result of the tightened market.
Rental stock has dropped 40 percent while demand climbs 23 percent
The rental crunch has spread across the Valencia region, accompanied by a 14.2 percent average rent increase over the last year, according to a Gesvalt appraisal report on property values. Gesvalt notes that rent levels have surged, with Valencia province seeing close to a 20 percent rise. In response to this scenario, Nora García welcomes the new regulations approved by the regional government to bring order to the market and curb speculative activity among holiday listings.
Recent market shifts have intensified the focus on licensing and enforcement as a stabilizing force for long-term housing access. As the market recalibrates, residents, property managers, and policymakers are watching closely to see how the balance between vacation and residential rentals will unfold in the coming months.