In recent months, there has been a noticeable decrease in the number of apartments available for tourists in Valencia and Benidorm. This is due to new regulations introduced by regional authorities and tighter controls on the rental market. Residents and businesses are seeing changes: the balance between tourist and long-term housing is shifting, prices are being adjusted, and demand is becoming more seasonal.
Reduction in supply
According to El confidencial, an analysis of the largest rental platforms such as Airbnb and Booking revealed that in most cities of the Comunidad Valenciana, the number of apartments available to tourists has decreased. This is particularly evident in Valencia itself, where the number of listings has dropped by almost 10% in a year. The city now offers just under 10,000 apartments, and the total number of guest accommodations has fallen to 35,000. In Alicante and Benidorm, the decline is less pronounced, but the trend continues.
Experts note that this is not a temporary phenomenon but a stable trend. The reason is new regional laws that limit the ability to rent out properties to tourists and require strict compliance with regulations. As a result, some owners have chosen to stop renting to tourists or switched their apartments to long-term leases.
Impact on prices and seasonality
The drop in supply has already affected prices. In Valencia, the average booking price over the past year fell by almost 20 euros, settling at around 188 euros per reservation. In Alicante, on the other hand, the average price rose slightly, while in Benidorm it stayed virtually unchanged, remaining the highest among the region’s major cities — nearly 195 euros per booking.
Seasonality has become even more pronounced. During the summer months, especially July and August, apartment occupancy reaches 70%, but the rest of the year demand falls, and the annual average rarely exceeds 50%. In Benidorm, this figure is even lower — just over 41%. In smaller towns and along the coast, annual occupancy can drop to as low as 30%.
The role of oversight and new regulations
Regional authorities have tightened rental requirements: now only fully equipped apartments can be let, and renting out individual rooms daily is prohibited. This has been one of the causes of reduced supply, especially in cities like Guardamar del Segura and Dénia, where the decline reached 15% and 8% respectively. Meanwhile, in some resort areas of Castellón — such as Oropesa and Benicàssim — the number of apartments has even increased slightly.
Professional associations note that illegal rentals remain a persistent problem. Despite the bans, some owners continue to let rooms, violating the law and creating unfair competition for legitimate businesses. Authorities promise stricter inspections and a crackdown on all properties that do not comply with the new regulations.
Economic Impact
Market adjustments affect not only apartment owners, but the tourism industry as a whole. On one hand, a reduction in supply could push prices up during peak season, while on the other, it may make housing more accessible to locals during the rest of the year. It’s worth noting that Alicante remains the leader in the number of tourist apartments—over 60% of the region’s properties are concentrated here, while Torrevieja ranks first among cities in this regard.
A similar situation with changes in regulations and their impact on city life has been observed in other regions of Spain. For example, recent protests and rallies in Madrid, as reported in the article about transport disruptions caused by mass demonstrations, were also linked to changes in urban policy and the regulation of public spaces.
According to El confidencial, across the region the average rental price in some cities exceeds 200 euros per booking, reaching 300 euros in Benicàssim in August. This points to strong demand for housing during the peak season, despite an overall decrease in availability.
In recent years, Spain has faced the challenge of balancing the interests of tourists and local residents. The introduction of new rental regulations is just one step on this path. Other regions, such as Barcelona and the Balearic Islands, have also implemented restrictions to ease the pressure on the housing market and make cities more comfortable for permanent residents. These measures often spark debate, but help control price growth and maintain housing affordability for locals.
