Accommodation rental platform Homelike has high hopes for the Spanish rental market, estimating that the rental of mid to long-term accommodation in Spain will generate €166 million this year.
Homelike calculated the number of euros by multiplying the average monthly rental price of a temporary home, by the number of homes that exist on its platform - which are aimed at businesses travellers and digital nomads.
Samuel Toribio, country manager Spain, says: “Reservations in Spain for this type of accommodation have grown by 20% in 2021 to date, which shows how quickly the mid-term rental market is recovering compared to other alternatives such as tourist rental, which has not yet taken off”.
“This trend confirms that in the tricky world of real estate, mid-term rentals are a safer option for owners than shorter, more traditional tourist/leisure rentals, both economically and in terms of reservations. The growth in digital nomads working remotely from cities around the globe has driven a high demand for this type of accommodation.”
The Spanish rental market
Just under two and a half hours away by plane, Spain is a much-loved travel destination for many Brits who enjoy a warm climate.
According to Homelike’s recent data, mid-term rental reservations in Spain rose by 340% in 2021 compared to 321% in 2019.
The findings also show that the average rental price of a mid-term home in Spain is €1,655 each month. In Madrid and Barcelona, the amount tends to increase but currently, around €1,690 and €1,719 each month is paid on average.
In contrast, in Valencia, up to €1,200 is paid per month. Overall, these figures will offer healthy ROIs to landlords hoping to rent out accommodation in Spain.
Already Homelike has around 12,500 properties in Spain on its platform. The country might be of particular interest to landlords and investors as there is a high level of demand throughout the year, making mid to long-term rentals in the well-liked southwestern part of Europe a potentially profitable business model.