Looking at tourism statistics from recent years, one thing is clear: in the post-pandemic period, tourism has taken off again – and in many places, it has even surpassed the record levels of 2019. According to Eurostat data, in 2023 Europe recorded over 2.9 billion overnight stays, not only recovering the pre-COVID numbers but exceeding them. Spain performed exceptionally well – welcoming nearly 85 million visitors, once again becoming one of the most popular destinations in the world. In 2025, that figure could reach a magical 100 million.
But this boom hasn’t come without consequences. The “too many tourists” phenomenon – known as overtourism – has stirred tensions in many cities: locals feel pushed out of their neighborhoods while Airbnb apartments flood city centers. Dissatisfaction over housing issues is often directed at tourism, but the root cause runs deeper – the housing shortage is mainly due to years of neglected housing policy, not the travelers themselves.
Yet, policymakers’ first response was to restrict short-term rentals. The goal is clear – free up housing for locals. But this move is more of a temporary patch than a real solution. Tourists won’t disappear – they still need places to stay, so they’ll simply spread to other neighborhoods or use different platforms. And more importantly: the concept of Airbnb and the shared economy won’t vanish. It’s a powerful market force – entire business sectors are built on it – and it will find new forms, whether through different services or new target audiences. What we’re seeing is not the end, but a transitional phase. And until politics catches up, the right strategy is essential.
What does this mean in practice?
That across Spain – especially along the coast – regulations have become stricter. In Andalusia, the city of Málaga has temporarily paused issuing new tourist licenses. In Valencia, Airbnb rentals are only allowed in designated zones. And in Barcelona, a complete ban on short-term rentals is planned by 2028. These are not isolated actions. A new national law empowers local governments to limit or completely halt license issuance. This is not a local anomaly, but a nationwide trend. While many interpret this as the death of Airbnb, in reality, it simply calls for a strategic shift.
The solution?
Focus on short- and medium-term rentals, which – crucially – are not subject to tourist regulations. According to Spanish law, leases longer than two months are considered traditional rental agreements and not for tourism purposes, so the restrictions don’t apply. This is not only a legal advantage – it’s a market opportunity. Rental prices are skyrocketing across the Western world – and Spain is no exception. As The Economist recently pointed out, the key reasons are: rising interest rates reducing home ownership, construction lagging behind demand, and increasing urban pressure. In the US, rents rose 25% in three years; in Germany, 18%; and in Spain, 15–20% nationwide. In coastal regions, growth is even sharper. In Málaga, for instance, the average rental price per square meter jumped from €10 to over €14 in just two years. But this characterizes the entire region, with several towns even surpassing Malaga in price levels: Marbella and Benahavís at €18/m², Estepona and Torremolinos at €16/m², Benalmádena at €15/m². Similar trends are visible on the Costa Blanca, especially around Alicante and Benidorm. And in the best districts of the city the rental prices are even several times higher. And demand is much broader than just holidaymakers. Long-stay visitors include “swallow” retirees, the rapidly growing group of digital nomads (in 2024, Spain was Europe’s top digital nomad destination according to Nomad List), international students, people traveling for medical care, and temporary workers. These tenants are reliable, look for quality furnished apartments, stay longer, and create less disruption than the daily turnover of tourists. The Spanish market has already begun adapting. More and more real estate agencies – including ours – specialize in short- and mid-term rentals that offer stable and predictable returns, with fewer regulatory risks.
So no, the Airbnb era is not over – it’s simply evolving. The shared economy isn’t going anywhere just because it’s being regulated – it’s finding new paths. In fact, we may soon see entirely new platforms and services designed for longer-term stays. Those who recognize this now and adjust their strategy accordingly won’t just survive the changes – they can profit from them. A well-located and well-managed property on the Costa del Sol or Costa Blanca can easily bring in an annual ROI of 6–8%. The market is alive and transforming – it’s only those who don’t adapt who get left behind.
