Spain’s rental market is changing. If you are renting out a property on the Costa Blanca, or thinking about it, this one is worth keeping an eye on.
A new report suggests many landlords in Spain are preparing to change their approach, with some planning rent increases and others considering leaving the long-term rental market altogether.
Landlords rethinking their plans
According to a study by Fotocasa, around 67% of landlords in the Valencian Community say they will either raise rents or withdraw their property once current contracts end.
Across Spain, the figure is slightly higher at 68%.
The reasons are fairly straightforward. Many owners feel uncertain about current regulations and are adjusting their plans as a result.
What changes are being considered?
The report highlights a mix of strategies:
- 24% plan to increase rent prices
- 19% will look for tenants with stronger financial profiles
- 12% are thinking about selling the property
- 8% may rent out rooms instead of the whole property
- 6% are considering switching to holiday lets
- Another 12% are unsure about investing in property again
In simple terms, some landlords are tightening conditions, while others are stepping away from traditional renting.
Spain’s rental market: The IRAV factor
A key part of the uncertainty comes from the IRAV, a government index used as a reference for rental prices.
Among landlords who know about it, 29% say it affects them quite a lot or a great deal. The remaining 71% say it has little or no impact.
Interestingly, awareness is not universal. Around 45% of those surveyed say they do not really know what the IRAV is.
What it means for renters
For tenants, especially in areas like the Costa Blanca where demand is already high, this could make things more challenging.
If fewer properties are available for long-term rent, competition may increase. That usually means higher prices and stricter requirements from landlords.
A market under pressure
The overall message from the report is clear. Uncertainty around regulation is making some landlords cautious.
Whether that leads to fewer rental properties in the long run remains to be seen, but it is something both renters and owners should keep in mind over the coming months.
Let Bridging the Gap help you navigate through more Costa Blanca Red Tape.
