The Valencian Community has experienced a notable rise in tourist-apartment occupancy, increasing by around twenty percent in six months, according to data from the National Institute of Statistics (INE). The rental market remains under pressure as affordable housing options stay scarce, pushing apartment prices in the three Valencia provinces to record highs by the end of 2023. The Official College of Real Estate Agents of Valencia (API) warned that higher rental costs in Valencia and its metropolitan area have encouraged a proliferation of room rentals, which may not align with family housing preferences.
The tourism sector stands as a major driver of Spain’s economy, contributing close to 12% of the national GDP. The rapid post-pandemic rebound, combined with limited hotel capacity caused by regulatory hurdles in cities like Valencia, has shifted a substantial portion of properties previously used for long-term rentals toward tourist accommodation. This shift has reshaped housing availability and pricing dynamics across the region.
Growth
INE reports show that the stock of tourist apartments in the Valencian Community grew from 49,950 in February 2023 to 58,337 by August, a 16.8% increase. In Castellón, tourist apartments rose by 27% to 7,020; Valencia Province saw an 18.1% rise to 13,355; and Alicante Province experienced a 14.1% increase to 37,962. Nationally, tourist accommodations expanded by 11.5% in six months, totaling around 340,000 units across the country. [INE]
Alongside this growth, traditional rental rates climbed sharply. Idealista’s latest price report shows the Valencian Community’s average price per square meter rising 15.5% year over year, reaching about 10.1 euros per month per square meter. That translates to more than a thousand euros for a 100-square-meter dwelling. The rise marks the highest levels recorded in the region’s rental prices. [Idealista]
21% increase
The average rent in the provincial capital rose by 21% in 2023, with the price per square meter increasing by 13.3 euros per month and hitting a new peak. The tight housing supply, coupled with a May law expanding tenant rights, reduced available units by roughly 31%. Demand remains strong, with multiple prospective renters competing for each newly listed apartment. Valencia leads Spain’s major cities in price growth since 2019, showing a 42% increase, compared with 24.6% in Barcelona and 11% in Madrid. The Valencian Province saw an 16.8% uptick in rents, pushing the average monthly per-square-meter cost to around 10.8 euros.
Across the region, Alicante and Valencia share similar pressures, with rental costs rising as supply tightens and demand remains robust.
Alicante and Castellón
In Alicante Province, prices have advanced by about 15.1% over the last year, averaging roughly 9.9 euros per square meter per month. The city of Alicante has seen landlords seeking around 16% more than a year prior, with typical rates near 10.8 euros per square meter. The record-high pricing captured in Idealista’s data highlights both provincial and municipal peaks. Castellón Province posted a 6.9% rise, with the average price hovering around 7.3 euros per month per square meter. In Castellón de la Plana, the mean income stands at about 7.5 euros monthly per square meter, an increase of 7.4% from December of the previous year. These trends illustrate a coastal and regional pattern of rising rents amid constrained supply. [Idealista]
API Valencia College notes that the new housing law intended to ease rental processes has yet to deliver the expected relief. The administration is urged to boost public social rent programs and pursue medium- and long-term solutions to stabilize prices and improve access to housing for households across the Valencian Community. [API Valencia]