A Private Holiday Homeowner’s Insight Guide ~ Spain
by azulomo | 7 min read
Design meets demand in Spain
From Guests to Growth ~ Why Spain’s Holiday Rental Market Still Delivers
Tourism in Spain isn’t just booming—it’s transforming. What once drew visitors with flamenco flair and coastal sunshine now invites deeper, slower, more meaningful experiences. And in 2025, the short-term rental (STR) landscape is evolving right alongside it.
Across the country, guests are no longer content with checking in and switching off. They’re arriving with curiosity, staying longer, and seeking more than just a comfortable bed. They want places that mirror their values, spark inspiration, and offer a sense of belonging—whether it’s a rustic villa in Menorca, a design-led loft in Valencia, a finca hidden in Mallorca’s olive groves, or a volcanic hideaway in the Canary Islands. The best hosts aren’t just offering accommodation anymore. They’re offering atmosphere, intention, and a memory guests carry home.
For private holiday home owners, this shift brings both beauty and responsibility. It’s not just about square footage or nightly rates—it’s about presence. From the way light moves through a room, to the textures underfoot, to the morning ritual guests quietly create in your space—every detail now matters more. And those details? They’re where differentiation lives.
With over 85 million international visitors in 2024 (INE), and a €19 billion contribution from short-term rentals (Exceltur), Spain continues to stand as one of Europe’s most magnetic travel destinations. But behind the headlines lies something more human: a new kind of traveller, a new kind of stay, and new opportunities for holiday home owners like you.
This isn’t just a report. It’s a roadmap—for those who care about creating guest spaces with both heart and financial clarity.
Because in Spain, success doesn’t come from size—it comes from soul.
Spain doesn’t just attract travellers—it invites them to slow down, stay longer, feel more deeply, and return to what really matters.
What Holiday Home Owners Are Really Wondering
Let’s be honest: between fluctuating bookings, shifting regulations, and changing guest preferences, it’s easy to feel a bit overwhelmed. You’re not just managing a property—you’re navigating a market that’s constantly moving, with guest expectations that feel both higher and more emotionally nuanced than ever before.
Whether you’ve owned your Spanish holiday home for years or are just dipping your toes into the market, the same questions tend to come up:
“Is it still worth investing in Spain?”
“Which regions are growing—and which ones are over-saturated?”
“What do guests actually want now?”
“How do I stand out without overspending?”
These are valid questions. You’re not just running a listing—you’re building something personal. Something that needs to work for your guests and your life. That’s why this guide exists: to replace overwhelm with clarity, help you make smart, soulful decisions, and reconnect you with the reason you started hosting in the first place.
1. Tourism Demand and Seasonality ~ Yes, the Guests Are Still Coming
Spain didn’t just bounce back after the pandemic—it surged. In 2024, 85.1 million international tourists arrived on Spanish soil, making it the second most visited country in the world (INE, 2024; UNWTO, 2024). But the story goes far beyond volume. What we’re seeing now is not just more travel—but different travel.
And these visitors aren’t all checking into hotels. Over 330,000 registered short-term rentals (STRs) now form a major pillar of Spain’s tourism economy (FEVITUR, 2024). Guests are gravitating toward homes for their warmth, privacy, and emotional pull—choosing places that feel more like sanctuary than stopover.
The average stay lengthened to 5.2 nights in 2024, up from 4.7 in 2019 (AirDNA, 2024). That rise might sound small, but it signals a major behavioural shift. Guests are staying longer, living slower, and trading the classic “long weekend break” for more immersive, meaningful stays.
This shift isn’t just about numbers—it’s about nuance. Guests are treating travel as part of their rhythm. Remote workers are booking month-long stays. Retired couples are wintering by the sea. Young families are seeking school holiday sanctuaries with kitchens, outdoor space, and slower days. In places like the Balearics, Andalusia, and the Canary Islands, hosts who embrace this new rhythm—offering flexible stays, cosy work nooks, or locally rooted experiences—are unlocking fuller calendars and deeper guest loyalty.
→ What This Means for You: Hosting in Spain isn’t just about the high summer rush anymore. Spring and autumn—the shoulder seasons—have become golden windows. If your home is well-equipped, emotionally welcoming, and seasonally styled, you won’t just fill summer—you’ll stretch your bookings into a longer, more profitable year.
2. Spotlight: The Balearic Islands ~ High Emotion, High Performance
The Balearic Islands—Mallorca, Ibiza, Menorca, and Formentera—continue to stand out as top-tier performers in Spain’s short-term rental landscape. These islands offer more than postcard views and pristine beaches; they offer emotionally magnetic destinations where curated homes can command premium rates and deliver meaningful guest experiences.
Let’s break it down.
Mallorca remains a favourite for guests seeking both natural beauty and design elegance. Short-term rentals near artistic, slow-living villages like Deià and Sóller regularly command €300–€600 per night, with occupancy surpassing 85%during peak summer months (AirDNA, 2024). These homes often combine rustic textures with refined interiors—finca charm meets quiet luxury.
Ibiza, once known almost exclusively for nightlife, has matured into a sophisticated haven for boutique stays. In villages like Santa Gertrudis, whitewashed villas and boho-chic retreats with architectural finesse and wellness features are driving serious results—over €2,000 per booking and a high percentage of repeat guests (Idealista & RentalScaleUp, 2024). Here, hosting success comes from creating a sense of calm exclusivity—not just from square footage or sea views.
Menorca, the soulful sibling of the group, offers a more peaceful pace and is seeing growing attention from families, nature lovers, and sustainability-minded travellers. With a more limited supply of STRs, curated homes in Menorca enjoy 70–90% occupancy during high season (AirDNA, 2024). Guests here favour authenticity, quietude, and homes that feel connected to local craft and landscape.
What sets these islands apart isn’t just the high demand—it’s the emotional value of the stays. In the Balearics, guest expectations are higher, but so are the rewards. These travellers are seasoned. They’ve seen slick but soulless. What they crave now is substance, story, and a home that gently reflects its surroundings.
→ What This Means: Emotional connection pays. In places like the Balearics, design without meaning won’t cut it. But a home that feels rooted, thoughtfully curated, and genuinely well-run can outperform flashier, less intentional alternatives. Think: handwoven textiles, thoughtful welcome notes, reclaimed wood tables, and a space that feels like it belongs. That’s not just aesthetic—it’s emotional ROI. And guests will gladly pay for it.
3. Spotlight: The Canary Islands ~ Sunshine, Stability, and Year-Round Demand
While much of Spain’s short-term rental market is seasonal, the Canary Islands offer something rare: year-round appeal. Thanks to their subtropical climate, these volcanic islands—Tenerife, Gran Canaria, Lanzarote, Fuerteventura, and beyond—draw everyone from digital nomads and retirees to adventure seekers and winter-weary families.
The numbers back it up. In 2024:
Over 13.9 million tourists visited the Canary Islands (ISTAC, 2025)
Occupancy rates exceeded 80% in peak months—and remained strong even in January and February (AirDNA, 2024)
Tenerife and Gran Canaria led in supply, while Lanzarote and La Palma showed growth in curated, design-led stays
Beyond the sun, the Canary Islands offer hosts something increasingly rare in Spain: longer high seasons, steady demand outside of school holidays, and a lower risk of overtourism crackdowns—though licensing is still required.
Many visitors book for 2–4 weeks at a time, especially remote workers and European snowbirds escaping the northern chill. Homes with good internet, sunny terraces, and nearby local shops perform particularly well—especially when guests feel welcomed into the rhythm of island life.
→ What This Means: Hosting in the Canaries is less about flash, more about flow. Guests want simplicity, comfort, and the feeling that they’re not just on holiday—but living differently, if only for a little while. Think: natural textures, morning sun on the patio, and a few favourite island tips pinned to the fridge. If your place feels like a gentle exhale, it will stay booked.
4. Rental Yields and Occupancy ~ The Numbers Still Stack Up
Let’s break it down—what can you actually earn from a short-term holiday rental in Spain?
In 2024–2025, most well-located holiday homes brought in between 4% and 7% of their property value through guest bookings. So if your place is worth €300,000, that’s roughly €12,000 to €21,000 a year in revenue—before expenses like cleaning, management, or local taxes are factored in.
And in certain areas? The returns were even stronger. Think Ibiza, Menorca, and coastal Mallorca—places where guests are happy to pay a little more for beauty, peace, and intentional design. Hosts with well-managed, soulful homes—especially those with valid licences—often earned over 6%, thanks to higher booking rates and better nightly prices.
But the Balearics aren’t the only hot spots.
Mainland cities like Málaga, Alicante, and Valencia had a strong season too, with a steady stream of holidaymakers seeking sun, city culture, and beach access. And in the Canary Islands, where the weather is warm year-round, homes in Tenerife, Lanzarote, and Gran Canaria performed especially well. With digital nomads, long-stay guests, and winter sun-seekers keeping calendars full even in off-peak months, the Canaries have quietly become one of Spain’s most reliable markets.
→ What This Means: You don’t need the biggest house or the fanciest furniture to earn well. The most successful homes are the ones that feel good. A breezy living space. Local touches. A handwritten guide to your favourite beach café. These little things create emotional value—and guests return for them.
→ Why It Matters: Strong income doesn’t just come from location—it comes from intention. Guests remember how your home made them feel. Whether you're hosting in Ibiza, Tenerife, or a quiet hilltop village in Galicia, homes that are thoughtfully styled and genuinely welcoming stand out—and stay booked.
In high-demand regions like the Balearics, where licences are limited and competition is fierce, just having a listing isn’t enough. You need something exceptional. A calm Menorcan casita with linen sheets and a jar of local olives on the table can outperform a larger property that lacks heart. Because guests don’t remember square metres—they remember moments.
And you don’t need to be in a well-known hotspot to succeed. Maybe your home is in rural Andalusia, perched above Valencia’s orange groves, or nestled into the volcanic curves of Lanzarote. If it’s well-run, beautifully styled, and emotionally inviting? It has everything it needs to thrive.
Because in 2025, guests aren’t just looking for a place to sleep—they’re looking for a place to feel. And if your home delivers that feeling, you’re not just getting bookings. You’re building a brand, a reputation, and a business that lasts.
→ If you’re here to do more than just fill a calendar—if you want to build something thoughtful, soulful, and sustainable—this is your moment. And this is the azulomo way.
5. Property Prices and Where They’re Rising
Property values are climbing—especially in emotional hotspots. Guests aren’t just drawn to location anymore; they’re drawn to feeling. And places that evoke calm, connection, or a slower pace are becoming magnets not just for travellers, but for investors, too. In 2025, average coastal property prices range between €2,800 and €4,500 per square metre (Idealista, 2025). In prime Balearic areas, particularly Ibiza and pockets of Mallorca, prices can soar to €7,000–€10,000+ per m², especially for homes with strong architectural design, outdoor space, and holiday rental licences (Savills & Engel & Völkers, 2024).
Meanwhile, Menorca remains more accessible, offering soulful, character-rich homes at lower prices—and with growing demand from families, remote workers, and wellness travellers seeking slower, more conscious getaways. There’s a real design-led opportunity here for those willing to blend authenticity with comfort.
And here’s the good news: you don’t need a luxury villa in Ibiza to tap into this market. Many buyers are now looking to inland Mallorca, northern Menorca, or lesser-saturated areas of Murcia, Valencia, and even Galicia, where traditional homes can be thoughtfully renovated into calm, story-filled guest spaces. If you focus on creating something unique—something with emotional texture and local charm—you can build a highly sought-after rental without spending millions. Often, it’s the atmosphere you create, not the address, that drives demand.
→ What This Means: Yes, Ibiza is expensive—but the returns, loyalty, and guest enthusiasm often make it worthwhile for those who invest with care. Still, don’t overlook emerging areas. Guests are craving connection and character—if your home can offer that, even off the beaten path, you’ll stand out in all the right ways.
6. Regulations and Licensing ~ Know the Local Rules
Short‑term rental licensing in Spain isn’t one-size-fits-all—it’s region-specific, evolving fast in 2025, and increasingly enforced.
Balearics (Ibiza & Mallorca):
These islands now have strict licence caps, zoning limits, and steep penalties—illegal rentals can face fines up to €40,000 (Govern Balear, 2024).
As of 23 June 2025, Airbnb’s new agreement with the Balearic councils requires all listings in Mallorca (and similarly in Ibiza) to display valid registration numbers. The platform is also set to quicker remove illegal ads—over 130 non-compliant Mallorca listings were removed already (Radio Mallorca, 2025).
These measures are part of a broader sustainability push and overtourism response—household protests have shaped these policies (Wikipedia, 2024).
National and Regional 2025 Changes:
A National Short-Term Rental Register launched in January. From 1 July 2025, every rental in Spain must have a unique national ID number. Listings without this will be taken off platforms and could lead to fines (Bravo Legal, 2025; Limit Consulting, 2025).
Regional rules are tightening: in communal buildings, owners need approval from at least 60% of neighbours to list a rental (SpainHomes.com, 2025; LPASpain, 2025).
Additional local regulations vary—Andalusia now requires property compatibility certificates; Madrid and Barcelona have their own bans and capping schemes (Various, 2025).
Urban Crackdowns:
Cities across Spain are pressure-testing Airbnb. A recent court ruling upheld a government mandate to block almost 66,000 listings for non-compliance—mainly due to missing licence numbers (Reuters, 2025; AP, 2025).
Barcelona’s mayor has threatened to close all tourist rentals by 2028, and the city is actively removing listings without proper credentials (El País, 2025; Reuters, 2025).
Similar crackdowns are appearing in Madrid, Valencia, and the Canary Islands, where thousands of illegal listings are being delisted and protests signal growing resident opposition (El País, 2025; BBC, 2024).
→ What This Means: Holding a valid licence has gone from optional to essential. In the Balearics, it's as valuable as property. Nationally, failure to register and follow local rules could mean removal from platforms and heavy penalties. Even big platforms like Airbnb are being forced to remove tens of thousands of listings. So if you want to open—or expand—your STR business in Spain now, think of the licence as the bedrock of your entire operation.
7. What Guests Want Now: Space, Stillness, and Something Local
In 2025, STR guests in Spain aren’t just chasing the next trendy location—they’re seeking homes that feel good to be in. Their wishlist isn’t complicated, but it is intentional:
Private outdoor space & views
Natural light and layered textures
Wi-Fi that works (digital nomad friendly)
Local tips and thoughtful, personal touches
Sustainable choices that feel effortless
(AirDNA, Booking.com, 2024)
→ What This Means: Today’s guest is intentional. Your space doesn’t need to be opulent—it needs to feel considered. A simple ceramic mug, a quiet nook, or a handwritten welcome note goes further than another smart speaker.
For holiday home owners, this is actually good news. You don’t need a marble kitchen or a villa with a pool to win hearts—you need a space that makes people feel something. The morning light across terracotta tiles. A guidebook scribbled with your personal café favourites. A jug of filtered water waiting after a long journey. When your space says, “We thought about you,” guests notice—and they come back. So don’t overthink luxury—just focus on comfort, calm, and human warmth.
8. What’s Next ~ Designing the Future of Spanish Hosting
The future of hosting in Spain isn’t about adding more ~ it’s about going deeper. Guests aren’t just booking somewhere to sleep. They’re choosing spaces that feel calm, cared for, and quietly unforgettable.
→ Tell a story through your space: Imagine this ~ a guest arrives to find a handwritten welcome note beside a basket of oranges from the market. There’s a vintage map on the wall, soft linen on the bed, and a woven rug that feels grounding underfoot. It doesn’t have to be grand ~ it just has to feel real. The homes that stay booked are the ones that feel lived in, not just listed.
→ Focus on how it feels: Guests might come for the sea view or the location, but what they remember is the feeling. The morning light across terracotta tiles. The sound of birds with their first coffee. The softness of a throw blanket on a quiet night. It’s these in-between moments that make a stay feel special.
→ Let sustainability feel natural: Think locally made ceramics instead of plastic cups, or a refillable soap bottle instead of single-use minis. Sustainability doesn’t need to be a label ~ it can be woven gently into the experience. A home that feels conscious without being complicated stands out.
→ Run it with care ~ even if it’s small: Guests notice when things are clear, calm, and well-considered. A smooth check-in. An organised kitchen. A little guide with your favourite cafés nearby. You don’t need a team of staff ~ just intention and kindness.
→ What This Means: The next chapter of holiday hosting in Spain belongs to homes with heart. It’s not about size or status ~ it’s about soul. And the more your space reflects how you want your guests to feel, the more your home will rise above the noise.
—
One Wave at a Time
Spain’s short-term rental landscape is rich with opportunity ~ but not the rushed kind. It’s not about flipping properties or chasing five-star reviews at all costs. It’s about something steadier. Something quieter. Something more lasting.
It’s for hosts who want to create spaces that breathe. Places where guests can pause, reconnect, and feel just a little more like themselves. It’s for owners who don’t just see their homes as bricks and mortar, but as something more meaningful ~ a setting for slow mornings, special reunions, and moments that stay with people long after they’ve left.
And if you’re hosting in the Balearics, you’re in a place where that kind of magic already lives in the air. These islands are more than destinations ~ they’re atmospheres. From sun-faded shutters in Menorca to the raw beauty of inland Ibiza, this is where design meets stillness, and where soulful hosting isn’t a trend ~ it’s a rhythm that’s always been here.
So don’t just count the rooms or square metres. Don’t worry if your home isn’t flashy or your pool isn’t heated. What really matters is how your space makes people feel. Safe. Inspired. Cared for. Connected. That’s what today’s guests are seeking. That’s what they’ll remember. And that’s what they’ll return for.
Because in this next chapter of travel, the winning homes won’t be the loudest or the biggest. They’ll be the ones that feel real. The ones that make people slow down ~ and feel something.
This is the azulomo way.
Soulful hosting. Thoughtful design. One calm, meaningful wave at a time.
“Spain’s short-term rental market isn’t just growing—it’s evolving. Guests are staying longer, booking more intentionally, and choosing homes that feel calm, conscious, and personal. Whether you’re hosting in Ibiza, Málaga, or a quiet coastal town, success now comes from emotional design, thoughtful details, and professional clarity. In today’s landscape, soulful spaces stand out ~ and well-run homes with heart lead the way.”
