Finance
Ibiza holiday rentals plunge as Spain cracks down on overtourism
Published by Global Banking and Finance Review
Posted on January 13, 2026
Ibiza Sees Dramatic Drop in Holiday Rentals Amid Overtourism Crackdown
Impact of Regulations on Ibiza's Holiday Rentals
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.
Overview of Rental Decrease
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.
Local Government Actions
Authorities are tightening rules as locals complain soaring rents and home prices are being driven by tourist demand.
Comparison with Other Regions
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)
Frequently Asked Questions about Ibiza holiday rentals plunge as Spain cracks down on overtourism
1What is overtourism?
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.
2What are short-term rentals?
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.
3What is the economic impact of tourism?
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.
4What is property management?
Property management involves overseeing and managing real estate properties, including maintenance, tenant relations, and financial aspects, to ensure the property operates efficiently.
