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, or a finca hidden in Mallorca’s olive groves. 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 and a STR sector contributing €19 billion to the national economy, 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 late at night (usually while scrolling through online reviews or wrestling with your pricing calendar):
“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, even essential questions. After all, you’re not just running a listing—you’re building something personal. Something that needs to work for your guests and for 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.
We’ve gathered the latest stats, filtered the noise, and brought together the insights that matter most to hosts like you. Because this isn’t just about trends. It’s about truth—and how to build a short-term rental that feels as good to run as it does to stay in.
1. Tourism Demand and Seasonality ~ Yes, the Guests Are Still Coming
Spain didn’t just bounce back after the pandemic—it surged ahead. The country not only reclaimed its place among the most visited nations in the world, it redefined what it means to travel here. In 2024, over 85 million international tourists arrived on Spanish soil—more than ever before (INE, 2024). But this time, the story wasn’t just about sun-and-sangria summers. It was about year-round immersion, slower rhythms, and more intentional stays.
The short-term rental market captured a major share of this movement. With 330,000+ registered holiday homes across the country, STRs have become a core part of Spain’s tourism fabric. From coast to coast—and island to island—guests are choosing homes over hotels, craving privacy, presence, and places that feel like their own.
Regions like the Balearic Islands, Andalusia, and Catalonia continue to lead in both supply and demand. But what’s new is when and how guests are choosing to stay. The traditional “high season” has begun to blur at the edges. Visitors are arriving earlier in the spring, lingering longer into the autumn, and even wintering in warmer southern regions or the sun-soaked Canary Islands.
In 2024, the average stay rose to 5.2 nights—up from 4.7 in 2019. That might not sound dramatic, but in the world of short-term rentals, it's a telling shift. It reflects the growing tribe of digital nomads, slow travellers, and experience-seekers who want to unpack for more than a weekend—and who treat travel not as escape, but as lifestyle.
→ What This Means for You: Hosting in Spain isn’t just about the summer rush anymore. There’s real potential in the “shoulder seasons” (April–June and September–November)—when travellers come for calm, connection, and character rather than crowds.
The Balearics, especially Mallorca and Ibiza, are perfect examples. In spring, these islands bloom with hiking, yoga, and food festivals. In autumn, they offer golden light, warm seas, and peace. Homes that highlight comfort, wellness, and longer-stay amenities are thriving—think dedicated workspaces, layered lighting, and fully equipped kitchens.
If your home offers warmth, calm, and emotional pull beyond the beach towel—there’s no reason you can’t welcome guests year-round. In fact, the more you design your space (and your listing) for longer, slower travel, the more your calendar—and your revenue—will stretch too.
2. Spotlight: The Balearic Islands ~ High Emotion, High Performance
Let’s talk islands. The Balearic Islands—Mallorca, Ibiza, Menorca, and Formentera—aren’t just pretty postcards. They’re powerhouse destinations with distinct personalities and premium guest appeal.
Mallorca: Elegant finca stays, Tramuntana hiking trails, and slow coastal villages continue to draw high-value guests. STRs near Deià, Sóller, and Santanyí command €300–€600/night during peak season, with occupancy exceeding 85%in July and August.
Ibiza: Beyond the party, Ibiza has matured into a boutique retreat hub. From whitewashed villas in Santa Gertrudis to boho casitas in the north, demand is strong for design-led, private, and wellness-focused stays. The best-performing homes here earn €2,000+ per booking with a loyal, returning clientele.
Menorca: The quiet, soulful sister. Menorca is becoming a favourite for families, slow travellers, and sustainability-focused visitors. With fewer listings, high-quality homes enjoy standout visibility and strong seasonal occupancy, often between 70%–90% in high season.
→ What This Means: If you own in the Balearics ~ or are considering investing ~ focus on emotional value over visual flash. Guests are willing to pay more for homes that feel curated, private, and peaceful. This is where boutique hospitality shines.
3. Rental Yields and Occupancy ~ The Numbers Still Stack Up
Let’s talk about what you can actually earn from a short-term holiday rental in Spain.
In 2024–2025, most well-located holiday homes earned between 4% and 7% of their property value each year through guest bookings. That means if your home is worth €300,000, you could expect to make around €12,000 to €21,000 a year in income—before costs like cleaning, management, and local taxes.
Some areas performed even better. In places where guests are willing to pay more for peace, beauty, and thoughtful design ~ like Ibiza, Menorca, and parts of Mallorca—returns of 6% or more weren’t unusual. Homes with warmth, style, and a proper tourism licence often booked faster and at higher nightly rates.
But it’s not just the islands that are shining. On the mainland, cities like Málaga, Alicante, and Valencia saw strong seasonal demand. In the Canary Islands, where the sun shines all year and digital nomads settle in for longer stays, occupancy was impressively steady ~ even in the winter months.
Across these hotspots, many homes reached 80% to 90% occupancy during summer, especially when well-managed and styled with intention. That’s a lot of booked nights—and a strong foundation for income if your home stands out.
→ What This Means: The Spanish short-term rental market still makes financial sense—but the homes that earn the most aren’t always the biggest or flashiest. They’re the ones that feel different. Guests are choosing spaces that are calm, beautiful, and thoughtfully run. A welcome note, layered lighting, a natural fibre rug—these little touches help a home feel more than just functional. They make it memorable.
→ Why This Matters: Strong returns don’t happen by luck. They come from care, clarity, and knowing what your guests truly value. Whether you’re hosting in Ibiza, Menorca, the Costa Blanca, or a tucked-away village near Ronda, it’s not just about being listed—it’s about being loved.
And in regions like the Balearic Islands, where short-term rental licences are limited and guest expectations are sky-high, it’s no longer enough to simply have a listing—it has to be exceptional. These are places where regulations are tight, competition is fierce, and travellers are often seasoned, selective, and willing to pay more for homes that offer something deeper than convenience.
In this kind of market, it’s the homes that blend beauty with professionalism that really shine. A sunlit Menorcan casita with handwoven textiles and a thoughtful welcome guide will outbook a larger villa with no story to tell. Guests remember the homes where everything feels considered—from the lighting to the linens, from the local tips to the calm energy of the space itself. And because of that, they come back. They leave glowing reviews. They tell their friends.
The good news? You don’t have to be in the Balearics to apply this thinking. Whether you’re hosting in inland Andalusia, a small town in Galicia, or a coastal village near Valencia, this blend of emotional design and operational clarity works anywhere.
Because guests everywhere are seeking something more than a transaction—they’re seeking a feeling. If your home delivers that? If you’ve taken the time to create a space that’s warm, welcoming, and well-run? You’re not just hosting. You’re building loyalty, demand, and long-term success.
→ If you’re in this for more than a quick win—and you’re willing to invest a little heart and a little strategy—the rewards go far beyond the booking calendar. You’re creating a business that feels good to run and even better to share. That’s the power of hosting the azulomo way.
4. Property Prices and Where They’re Rising
Property prices in Spain are going up—especially in places that people feel emotionally drawn to. It’s not just about big cities anymore. Guests (and investors) are falling in love with smaller, slower, more soulful places—especially by the coast and on the islands.
In popular holiday rental areas near the sea, average prices are now between €2,800 and €4,500 per square metre. That means a 100 m² home could cost anywhere from €280,000 to €450,000, depending on the location and condition.
The Balearic Islands, especially Ibiza and Mallorca, are some of the most expensive places to buy. Beautiful villas and design-led homes in top spots can go for €7,000 to €10,000 per square metre, or even more. These islands have a strong reputation for luxury, lifestyle, and exclusivity—which is why they attract high-paying guests and returning visitors year after year.
But not all the good opportunities are gone. Menorca—a quieter, more peaceful island—is still more affordable, with strong potential for growth. And on inland parts of Mallorca or lesser-known towns, you can still find charming, character-filled properties at lower prices. These areas are becoming more popular as travellers look for unique stays away from the crowds.
→ What This Means: Buying in the Balearics isn’t cheap—but for homes that are well-run and beautifully presented, the income and guest loyalty can make it worth it. Guests in these areas are looking for more than just a place to stay—they’re looking for an experience. If you can offer something that feels thoughtful and local, you can charge more and stay booked more often.
And if Ibiza or Mallorca are out of your budget? Don’t worry. There’s still space to grow in areas like northern Menorca, interior Mallorca, or even coastal towns on the mainland like those in Murcia or the Costa Blanca. These emerging locations are ideal for design-forward, soulful hosting—where the feeling of the place matters just as much as the location itself.
5. Regulations and Licensing ~ Know the Local Rules
Spain’s STR regulations vary widely by region—and nowhere more so than the islands.
Ibiza & Mallorca have caps on new licences, strict zoning rules, and high compliance expectations. Illegal rentals face fines up to €40,000.
Menorca offers a slightly easier licensing route, but numbers are still limited
All listings must show registration numbers and meet guest amenity requirements
→ What This Means: Don’t skip the paperwork. In the Balearics, licences are gold. If you already hold one, you're holding value. If not, look to lesser-saturated areas—or consider buying properties with existing licences.
6. What Guests Want Now: Space, Stillness, and Something Local
In 2025, Spanish STR guests are looking for:
Private terraces, sea views, and calm interiors
Wi-Fi that actually works and homes with workation appeal
Natural materials, handcrafted décor, and eco-awareness
Hosts who provide local recommendations and thoughtful touches
→ What This Means: The trend isn’t luxury for luxury’s sake. It’s intentional comfort. In the Balearics especially, guests crave homes that feel rooted to the land and respectful of their surroundings. Design with care, and you’ll stand out.
7. 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.
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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.”
