Top 10 Spain Airbnb Markets to Invest

Airbnb Spain offers a diverse mix of culture, scenic beauty, and booming tourism making it one of the most profitable Airbnb investment destinations. With over 42 million tourists in the first half of 2024, the demand for short-term rental accommodations is thriving.

Whether you’re a seasoned Airbnb host or a new investor, Spain offers a variety of lucrative markets, from vibrant cities to tranquil coastal towns. This article explores the top 10 Airbnb markets in Spain, providing insights to help you make informed decisions and maximize your returns.

Why Spain for Your Airbnb Investment?

Spain's real estate market is set to grow from $6.95 trillion in 2024 to $7.57 trillion by 2028, fueled by a 2.16% annual growth rate in the residential sector. Here’s why Spain stands out for Airbnb investors:

• Attractive rental yields: Cities like Valencia, Málaga, and Seville boast yields between 4% and 10%.

• Low seasonality: Consistent tourist demand ensures year-round rental income.

• Favorable financing options: Mortgage rates start at just 1.8%, and the Golden Visa program offers residency for property investments over €500,000.

• Affordable property prices: Compared to other European countries, Spain offers excellent value for money.

With strong tourism, competitive pricing, and the regional government's website outlining supportive regulations, Airbnb Spain remains a popular choice for short-term rental investments.

Considerations Before Investing in Airbnb in Spain

1. Ensure you understand the laws regarding foreign property ownership in Spain, including any restrictions or additional paperwork required.

2. Be aware that different regions in Spain have varying rules for short-term rentals. Research the specific requirements, such as registration, taxes and possible restrictions in the area you are interested in.

3. Analyze the demand for short-term rentals in different Spanish cities. Consider factors like tourist attractions, business hubs and seasonal fluctuations.

4. The success of your rental largely depends on its location. Proximity to major tourist sites, transport links, and local amenities can significantly impact your rental's appeal, making the right location critical for maximizing returns.

5. Evaluate the initial investment cost, including purchase price and any renovations needed. Also, consider ongoing expenses like maintenance, utilities and management.

6. Investigate average rental yields in the area to estimate potential returns. Compare these with other investment opportunities to ensure competitiveness.

7. Be aware of the tax obligations associated with owning and renting out a property in Spain, including income tax on rental earnings and local taxes.

8. Decide whether you will manage the property yourself or hire a property management company, especially if you will not be based locally.

9. Consider your long-term goals and exit strategy for the investment. This includes understanding the resale market should you decide to sell the property in the future.

Top 10 Spain Airbnb Markets to Invest 

1. Madrid

Madrid, Spain's vibrant capital, is a city where tradition meets modernity, creating a magnetic pull for visitors worldwide. Whether it's the royal grandeur of the Palacio Real or the lively buzz of Gran Vía, Madrid offers something for everyone. With a population of around 3.3 million, the city is always alive and draws over 10 million tourists each year.

Madrid is a top-tier Airbnb market with a strong score of 99, driven by high rental demand and well-managed local regulations. Hosts must register their properties and meet specific safety standards, with new licenses restricted, especially in central areas, to balance tourism with local life. While investors should watch for moderate revenue growth and seasonal changes, Madrid's regulation makes it a dependable and welcoming choice for short-term rentals. Whether in the city center or neighborhoods like Malasaña, opportunities for success are plentiful.

Property earning potential

According to AirDNA, these are the statistics for Madrid,

• Average daily rate: $135.9

• Occupancy rate: 63%

• Revenue:$17.2K /Annum

2. Barcelona

Barcelona, the jewel of Spain's tourism crown, is a prime location for Airbnb investors. As the beating heart of Catalonia, it offers a rich mix of culture and attractions, from Gaudí's iconic architecture to the beaches of Barceloneta. With a population of 1.6 million and over 12 million tourists annually, Barcelona is a top-tier destination, ensuring high demand for short-term rental properties and consistent rental earnings. Its diverse neighborhoods and vibrant atmosphere make it a standout choice for tourist rentals.

Barcelona is a growing Airbnb market with a market score of 98, fueled by high rental demand, although revenue growth is moderate. The city's Airbnb regulations are strict, carefully balancing the preservation of its charm with profitable investments.

Barcelona’s diverse neighborhoods, from beachfront apartments to Gothic Quarter homes, attract a steady tourist influx and ensure high occupancy. Success in this lucrative short-term rental market requires strict adherence to property license regulations, often detailed on the regional government's website.

Keep in mind that short-term rentals are to be banned completely by 2029, so current hosts should consider transitioning from short-term lets back to mid or long-term rentals or exploring other accommodation markets with stable rules and regulations.

Property earning potential

According to AirDNA, these are the statistics for Barcelona

• Average daily rate: $188.9

• Occupancy rate: 67%

• Revenue: $26.3K/Annum

3. Valencia

Valencia, where old-world charm meets futuristic innovation, offers a unique blend of experiences for visitors and residents alike. Known for its avant-garde City of Arts and Sciences and the vibrant old town, Valencia is a city that pulses with energy. With a population of about 800,000 and drawing over 2 million tourists annually, it's a city on the rise.

Valencia shines in the Airbnb market with a market score of 98 and strong rental demand. While offering excellent potential, investors should navigate local regulations, seasonal fluctuations, and moderate rental earnings growth.

While the short-term rental market is thriving, offering great investment potential, investors must navigate strict regulations, including a property license online mandatory registration, safety standards and specific restrictions in residential areas and tourist establishments, like minimum stay requirements during peak seasons. Valencia's vibrant neighborhoods attract many guests and investors need to stay informed and compliant to avoid significant fines.

Property earning potential

According to AirDNA, these are the statistics for Valencia

• Average daily rate: $125.7

• Occupancy rate: 63%

• Revenue: $14K/Annum

4. Seville

Seville, the vibrant heart of Andalusia, radiates a warmth that captures everyone who visits. The city's soul is alive in its towering Cathedral, the lively pulse of flamenco in the streets and its rich tapestry of history and culture. With around 700,000 residents, Seville draws over 3 million tourists each year, all eager to experience its renowned festivals and historic sites. It's a place where the past and present dance together, making Seville a consistently sought-after destination.

Seville, with a market score of 96, is a prime Airbnb investment destination due to strong rental demand and steady revenue growth. Investors must comply with property registration, zoning rules, and short-term rental licenses, including proof of compliance with local regulations.

Navigating community rules and seasonal fluctuations is crucial to avoid penalties. From courtyard apartments in the historic center to modern flats in Triana, Seville’s cultural charm ensures year-round guest appeal.

Property earning potential

According to AirDNA, these are the statistics for Seville:

• Average daily rate: $167.8

• Occupancy rate: 65%

• Revenue: $27.5K / Annum

5. Málaga

Málaga, the gateway to the Costa del Sol, seamlessly blends beach life with cultural heritage. Renowned for its year-round sunshine, stunning beaches, and vibrant arts scene, it attracts visitors seeking the best of both worlds. With a population of approximately 580,000 and drawing over 4 million tourists each year, this city is a magnet for sun-seekers and culture lovers alike.

Málaga’s Airbnb market thrives with a perfect score of 100, fueled by strong rental demand and revenue growth. Its historic charm and beachside appeal ensure consistent tourist interest, making it ideal for short-term rentals.

However, investors need to navigate regulations, including mandatory registration of tourist rentals with the Andalusian Tourism Registry and obtaining a full tourist license here. Adhering to these rules is important, as non-compliance can lead to significant fines. Managing these requirements and seasonality effectively will help maximize returns in this flourishing market.

Property earning potential

According to AirDNA, these are the statistics for Málaga

• Average daily rate: $157.6

• Occupancy rate: 70%

• Revenue: $21.8K/Annum

6. Granada

Granada, nestled in the Sierra Nevada mountains, is where history truly comes alive. The city, home to the iconic Alhambra, attracts millions each year who are captivated by its blend of old-world charm and lively neighborhoods. With a population of around 230,000 and welcoming over 2.7 million tourists annually, Granada may be small, but it leaves a big impression with its stunning vistas and rich cultural heritage.

Granada is an attractive market for Airbnb investors, boasting a high market score of 99, with strong rental demand and seasonal appeal. The city's rich history, vibrant student life and proximity to skiing make it a top destination, keeping properties in demand. Whether you're looking at a charming Albaicín apartment or a modern flat near the university, Granada's cultural and natural beauty enhances its appeal.

However, investors must navigate strict regulations, including property registration certificate tax obligations, registration, safety standards and restrictions on renting entire homes tourist apartments in certain areas. Staying compliant is crucial to ensure compliance, avoid fines and ensure success in this thriving market.

Property earning potential

According to AirDNA, these are the statistics for Granada

• Average daily rate:$128.7

• Occupancy rate: 55%

• Revenue: $16.8K/Annum

7. Palma de Mallorca

Palma de Mallorca, the vibrant capital of the Balearic Islands, offers a blend of Mediterranean beauty, historic architecture, and lively nightlife, attracting over 16.5 million tourists annually. Despite concerns about overtourism, Palma’s Airbnb market scores 76, driven by strong rental demand.

Investors should note moderate revenue growth, seasonality, and strict regulations, especially for multi-family apartment buildings, where the registration number of new licenses is restricted. Non-compliance with local authorities can lead to fines of up to €400,000, making adherence to local laws essential.

Palma remains a top investment choice, with high summer demand ensuring strong occupancy and returns. From seaside villas to historic townhouses, its enduring appeal guarantees opportunities for success in the short-term rental market.

Property earning potential

According to AirDNA, these are the statistics for Palma de Mallorca

• Average daily rate:$219.2

• Occupancy rate: 61%

• Revenue:$20.5K /Annum

8. San Sebastián

San Sebastián, with its world-famous cuisine, beautiful beaches, and vibrant cultural scene, is a city that knows how to charm its visitors. Located in the Basque Country, San Sebastián is a haven for foodies and beachgoers alike, making it a unique and desirable destination. With a population of around 185,000 and welcoming over 1.7 million tourists annually, this city is small but mighty when it comes to tourism.

San Sebastián’s Airbnb market is evolving, with tighter local regulations, but strong rental demand keeps it attractive for investors. With a market score of 77, its mix of beachfront apartments and central city spots ensures year-round appeal, driven by the city’s natural beauty and cultural richness.

Property earning potential

According to AirDNA, these are the statistics for San Sebastián

• Average daily rate: $233.1

• Occupancy rate: 60%

• Revenue: $28K/Annum

9. Córdoba

Córdoba, known for the iconic Mezquita, blends rich history with modern attractions. With tourism and sports council support, the city draws over 1 million visitors annually. Home to 325,000 residents, Córdoba’s mix of heritage and contemporary charm makes it a top tourist destination.

Córdoba’s Airbnb market scores 84, supported by moderate rental accommodation demand and revenue growth. Investors must adhere to mandatory property registration with the Andalusian Tourism Registry and meet safety standards. Local governments enforce zoning restrictions and regulations that may limit short-term rentals, with non-compliance risking fines.

Staying updated on local regulations is key to maximizing returns in this culturally rich destination.

Property earning potential

According to AirDNA, these are the statistics for Bilbao:

• Average daily rate: $156.9

• Occupancy rate: 50%

• Revenue: $16.8K/Annum

10. Alicante

Alicante, with its golden beaches, historic sites and vibrant nightlife, stands out as a gem of the Costa Blanca. Known for its sunny climate and welcoming atmosphere, Alicante attracts both domestic and international travelers, drawing over 1.5 million tourists annually. The city, home to around 330,000 residents, offers a perfect blend of relaxation and activity.

Despite Alicante's Airbnb market performing moderately with a Market Score of 50, driven by a rental demand score of 53 and moderate revenue growth of 46, it remains a strong investment option due to its consistent tourist appeal and strategic Mediterranean location. However, investors need to be mindful of seasonality and moderately stringent regulations. These regulations include mandatory registration with municipal authorities and local authorities here, the Valencian Community Tourism Registry and adherence to specific guest and safety rules. Non-compliance with local rules can result in fines, making it crucial for investors to navigate the market carefully and adhere to local laws to succeed.

Whether you're considering a beachfront condo or a historic property in the old town, Alicante's enduring popularity makes it an excellent choice for property owners and investors in the Airbnb market.

Property earning potential

According to AirDNA, these are the statistics for Alicante

• Average daily rate:$308.7

• Occupancy rate: 59%

• Revenue: $17.5K/ Annum

Pro Tip : Top areas in Alicante for Airbnb investment include Alicante Old Town, Santa Bárbara Castle, Explanada de España, Playa del Postiguet and San Juan Beach.

Why Spain is a Great Choice for Airbnb Investments

Spain offers a perfect mix of culture, beauty and solid financial opportunities, making it a top pick for Airbnb investors. Whether you're captivated by the vibrant energy of Barcelona or the serene charm of Tacoronte, Spain has a spot that fits every investor's dream. The country's diverse locations let you choose between bustling city life or a peaceful getaway, depending on what you're looking for.

To make things even easier, tools like Hostaway can help you manage your properties effortlessly, so you can focus on enjoying the rewards of your investment. With its endless appeal to tourists and a variety of opportunities to rent out your space, Spain is the ideal place to dive into the Airbnb market and watch the income from your investment grow.