Coastal Rentals in Spain to Increase by 10% This Summer, Says Tecnitasa Study

Renting a beachfront flat this summer will come at a higher cost than in previous years, with prices soaring to an average of €1,160 per week, according to a recent study by Tecnitasa. This represents a nearly 10% increase from last summer and a staggering 40% jump from the summer of 2020, as the market rebounds from the impact of the pandemic. Popular destinations such as Santanyi, Ibiza, Pollensa in the Balearic Islands, and Puerto Banús in Marbella are commanding prices exceeding €3,000 per week. Meanwhile, coastal areas like Santa Cruz de Tenerife, Las Palmas, Cantabria, and Lugo have seen prices surge by over 12%.

If you have yet to secure accommodation for the summer, be prepared for higher prices compared to previous years. The average cost of renting a beachfront flat has increased by almost 10% compared to last summer, according to Tecnitasa Group's report on weekly rental prices in key Spanish coastal areas for August. With an average weekly rent of €1,160, holidaymakers can expect to pay around €105 more than in 2023. This represents a 25% increase over the past three years, signaling a robust market for holiday rentals despite a slowdown in the conventional real estate sector.

The surge in rental prices this summer contrasts with the modest 3.75% increase seen in 2023, which was below the Consumer Price Index (CPI). Comparing current prices to those in 2020, the first summer post-COVID-19, reveals a staggering 40% increase from an average of €826 per week. The most significant price hikes have been observed in provinces like Gran Canaria, Tenerife, Lugo, and Cantabria, all boasting scenic Atlantic Ocean views, with increases exceeding 12%.

In Gran Canaria and Tenerife, popular tourist destinations like Adeje, Mogán, Arona, and Puerto de la Cruz have seen average price hikes of over €300 per week compared to last summer. In Lugo, rental prices have surged to nearly €550 per week, a rise of over €100 from 2023. Tecnitasa's president, José María Basañez, notes that demand from both Spanish and foreign tourists remains robust, with properties being booked months in advance, leaving little room for last-minute bookings.

From the luxurious Ibiza and Puerto Banús to the more affordable Tapia de Casariego, Spain offers a diverse range of beachfront rental options. Regions like Galicia, Andalusia, and the Balearic Islands boast the highest price differentials, with exclusive destinations like Santanyi, Ibiza, Pollensa, and Puerto Banús commanding prices exceeding €2,000 per week. On the other end of the spectrum, beaches in northern, eastern, and southern Spain, as well as the Valencian Community, offer more affordable options with rents below €500 in some locations.

The summer rental market for beachfront flats in Spain is experiencing a significant surge in prices, driven by strong demand and limited availability. Holidaymakers should expect to pay higher rates compared to previous years, especially in popular coastal destinations. Planning ahead and booking early are essential to securing accommodation at competitive prices in the current market.