REAL ESTATE – MARBELLA WOHNEN – How tourism impacts the real estate market in Spain
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How tourism impacts the real estate market in Spain
Tourism has been one of the most important drivers of growth in the Spanish economy for decades. This sector not only attracts millions of visitors to our country every year, but also has a significant impact on the real estate market. In our blog, we will analyze how tourism influences the purchase and sale of homes, holiday rentals, as well as foreign investment in our country.
Tourism and the real estate sector in Spain
The tourism sector plays a fundamental role in Spain’s economy, being one of the most important drivers. In fact, in 2024, Spain reached a historic record of visitors, reaching the figure of more than 85 million international tourists. This fact not only boosts the economy through employment and investment, but also exerts a great influence on the Spanish real estate sector.
The growing demand for property in tourist areas leads to an increase in property prices, especially in coastal regions and tourist cities. It has also encouraged foreign investment, with international buyers looking to acquire property in Spain as an investment or for personal use. This has contributed to the creation of a dynamic and competitive market, where supply adapts to the changing needs of the sector.
The demand for vacation properties
Spain is one of the most popular tourist destinations in the world, and its appeal is not limited to temporary visits. In fact, many of the tourists who come to our country are captivated by the climate, beaches, gastronomy and Spanish culture, and make the decision to buy a property in our country, giving rise to a strong market in second homes, especially in coastal areas and on the islands. International buyers, especially from countries such as the United Kingdom, Germany or France, buy in our country, not only to invest, but to enjoy their annual holidays at any time of the year.
Appropriate regulations by the administration and careful urban planning are essential to manage the balance between promoting tourism growth and guaranteeing access to housing, thus ensuring sustainable development of the real estate market in tourist areas.
The impact of vacation rentals
Another factor to consider when discussing the impact of tourism in Spain is that of holiday rentals, a type of rental that has transformed the real estate market in many cities and tourist destinations in Spain. In recent years, many property owners have been able to rent out their properties on a short-term basis, obtaining a higher return compared to traditional rentals, which has increased the supply of properties for holiday rentals.
However, this fact also creates conflicts that need to be resolved. In some cities, the increase in the supply of properties for holiday rentals has contributed to the increase in long-term rental prices, which makes it difficult for local residents to access housing. In return, some administrations have been forced to regulate holiday rentals, limiting the number of licenses, controlling the impact on the real estate market.
The impact of tourism on the real estate market presents both challenges and opportunities.
Foreign investment in the real estate sector
Tourism has also been a key factor in attracting foreign investment to the Spanish property market. International investors see Spain as an attractive market for acquiring property, either to rent or to sell later. This trend is especially strong in tourist areas, where demand for property is high and prices tend to be more stable.
Furthermore, foreign investment is not limited to the purchase of second homes. In fact, many investment funds are investing in the construction of new residential complexes in areas with a high tourist influx, something that boosts the local economy, represents a great source of income and generates employment.
Tourism boosts the economy and generates demand for new construction, which benefits society through job creation and infrastructure development.
If you want to know more about the real estate sector in Spain, we invite you to continue reading our blog.
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