Spain’s housing crisis: Surge in 11-month rentals sees estate agents profit at tenants’ expense

SPAIN’S rental market is seeing a huge shift towards seasonal lets of just 11 months as landlords shy away from offering long-term contracts – and the estate agents profit.

‘Seasonal’ rentals have exploded 26% year-on-year in the second quarter of 2025, now representing 15% of Spain’s total rental market, according to property platform Idealista. 

This shift reflects changes introduced by Spain’s Housing Law 2023, which imposed new obligations on landlords for long-term rentals, whilst leaving seasonal lets largely unaffected by the legislation.

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One of the key loopholes is that contracts under 12 months permit estate agents to unload the burden of paying their fees away from their clients – landlords – and onto the tenants, something the law was designed to prevent.

Barcelona epitomises this troubling trend, with a staggering 49% of rental properties now marketed as seasonal accommodation, up 31% from last year. 

This means nearly half of all Barcelona tenants are likely paying agency fees that would otherwise be covered by landlords under permanent rental agreements.

The financial impact on tenants is substantial. 

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Estate agent fees typically range from one to two months’ rent, costs that can add thousands of euros to moving expenses. 

For a typical Barcelona flat renting at €1,500 monthly, tenants could face agency fees of €1,500-€3,000 that landlords would legally be required to pay under permanent rental contracts.

Conversely, permanent (five-year) rentals grew a mere 2% in the Catalan capital 

Nationwide, permanent rental stock – where tenants enjoy greater protection – increased by just 3%. 

San Sebastian follows Barcelona’s lead with 39% seasonal rental penetration, whilst Girona and Badajoz complete the top four markets where more than a third of rentals exploit this loophole, at 37% and 33% respectively.

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These aren’t all holiday destinations driving the surge – some are major employment centres where workers need affordable housing but find themselves trapped in a seasonal rental system where they have to look for a new place each year.

By classifying rentals as ‘seasonal,’ property owners dodge a majority of the risks that the Housing Law shifted onto their shoulders, whilst avoiding the rent increase caps and longer-term tenant protections that apply to permanent lettings.

Other major cities show alarming growth rates in seasonal offerings. Bilbao recorded 29% growth, Madrid 25%, and Malaga 24%. 

The most dramatic increases occurred in smaller markets previously untouched by this practice. 

Ourense recorded a staggering 600% increase in seasonal rentals, Lugo surged 150%, Jaen rose 140%, and Caceres climbed 113%. 

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Some markets buck the trend. Ceuta and Melilla show virtually no seasonal rental activity, whilst traditional tourist destinations like Valencia and Bilbao maintain lower seasonal penetration at 13% each. 

However, even these markets are seeing growth as landlords recognise the financial advantages of seasonal classification.

The data exposes how Spain’s rental market is evolving in ways that systematically disadvantage tenants.

What appeared to be a tenant-friendly reform in the 2023 housing law has inadvertently created a lucrative loophole that’s reshaping the entire rental landscape.

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