Spain is witnessing a sharp rise in short-term tourist rentals, defying official attempts to clamp down on the trend amid growing concerns over overtourism and a worsening housing shortage. According to a new report by the tourism industry group Exceltur, tourist-focused rental properties have surged by 25% over the past two years, outpacing the modest 2% growth in hotel room availability during the same period.

This increase has been especially notable in Spain’s top 50 tourism hotspots, which collectively attracted half of all international tourists in 2024. The influx of visitors, driven by post-pandemic travel recovery, has led to a rapid expansion of vacation rentals even as local governments try to tighten controls.

Facing mounting pressure from residents protesting against rising housing costs, authorities have begun rolling out restrictions. Cities like Barcelona, Madrid, Malaga, and several regions in the Canary Islands have implemented or are planning limitations on new permits for short-term rentals. Barcelona’s mayor has gone a step further, pledging to phase out all short-term rental licenses by 2028 in a bid to address the city's housing affordability crisis.

Spain’s central government also stepped in last week, instructing Airbnb to remove over 65,000 listings that were found to breach local regulations. The platform has vowed to challenge the order legally. However, enforcement remains inconsistent. As Exceltur’s vice president, Oscar Perelli, pointed out, traditional inspections by local and regional authorities have often fallen short of effectively implementing the rules.

Despite these measures, short-term rental growth remains strong. In Madrid alone, such accommodations rose by 49% between 2022 and 2024 and now represent 38% of the city’s 176,702 visitor beds. Malaga saw a 36% increase, with short-term rentals making up a majority—56%—of all tourist lodging. Even in Barcelona, where rental licenses have been tightly controlled for years, the supply of short-term units still grew by 26%.

Spain remains a global tourism powerhouse, ranked second only to France. The country welcomed 25.6 million international travelers in the first four months of this year, a 7% rise compared to the same period in 2024. While tourism remains vital to the Spanish economy, balancing its benefits with livability for residents is becoming an increasingly urgent challenge.