Finance
Ibiza holiday rentals plunge as Spain cracks down on overtourism
Published by Global Banking & Finance Review®
Posted on January 13, 2026
2 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 13, 2026
2 min readLast updated: January 19, 2026
Ibiza's holiday rentals have significantly decreased as Spain enforces regulations to curb overtourism, affecting local housing markets.
MADRID, Jan 13 (Reuters) - The number of short-term tourist lets on Ibiza almost halved in 2025 from a year earlier as Spain's crackdown on holiday homes and overtourism started to bite.
The supply of short-term rentals on the popular tourist island is now 80% lower than in 2017, tourism lobby Exceltur said. Across Spain, listings fell 4% in the second half of 2025 versus a year earlier - the first nationwide drop - though trends varied among the 25 biggest cities.
Authorities are tightening rules as locals complain soaring rents and home prices are being driven by tourist demand.
Ibiza has ramped up inspections to weed out unauthorized listings, according to the local government's website, while Barcelona plans to ban all holiday homes by 2028.
MALLORCA JOINS CRACKDOWN, BUT SOME CITIES BUCK TREND
Ibiza and Mallorca posted the steepest declines in short-term rentals, while coastal hubs like Malaga and Almeria continued to increase their tourist accommodation supply, Exceltur said.
New rules requiring landlords to register properties before listing them on platforms such as Airbnb are driving the shift, according to Exceltur Vice President Oscar Perelli.
Holiday homes have been outpacing hotel growth for years as Spain's tourism boom put it neck-and-neck with France for the world's top destination. Nearly one-third of tourists still opt for homes, which remain cheaper than hotels.
Ibiza delivered Spain's highest hotel revenue per room last year at 170 euros ($198), up 6% from 2024, Exceltur said.
($1 = 0.8571 euros)
(Reporting by Corina Pons. Editing by Charlie Devereux and Mark Potter)
Overtourism refers to the situation when a destination experiences an excessive number of visitors, leading to negative impacts on the environment, local culture, and the quality of life for residents.
Short-term rentals are accommodations rented out for brief periods, typically less than a month, often through platforms like Airbnb, catering to tourists and travelers.
Tourism can significantly boost local economies by creating jobs, increasing revenue for businesses, and attracting investments, but it can also lead to challenges like rising living costs.
Property management involves overseeing and managing real estate properties, including maintenance, tenant relations, and financial aspects, to ensure the property operates efficiently.
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