The fact that increasing numbers of landlords in Malaga, and across Spain, are choosing to rent out to tourists instead of local long-term tenants has become a major sticking point in the recent over-tourism protests that have plagued the nation.
However, the latest figures suggest that some landlords cannot afford to continue to rent to Malaga’s residents.
According to a new study, homeowners who switch from leasing their properties long term to renting out to tourists can earn up to 622 percent more in profits.
On average, renting out a property long term in Malaga will earn the owner 7,510 euros (£6,258) per year. However, renting it out to tourists will rake in an average of 30,500 euros (£25,416) per annum, according to eye-opening statistics from a study carried out by the Espacio Comun Coop cooperative, on behalf of Malaga City Council, reported The Olive Press.
The stark difference means holiday lets will make an average of 406 percent more than traditional long-term rents. In monetary terms, this is just over £19,00 – a huge problem for Malaga locals.
British tourists only seem to be exacerbating the problem. In the last year of a Statista study from 2013 to 2019, over one million tourists from the UK visited hotels in Malaga. In 2023, 17.3 million Brits visited Spain, accounting for 20.4 percent of the total number of visitors. This was more than five and a half million more than France, which was the second largest source market, according to Idema Madrid.
The study said it means most homeowners will opt to let to tourists because of the “attractive” profits: “Homeowners who have these properties for conventional rental end up using them for Tourist Use, since they will obtain greater benefits.”
The new study comes just days after the city council announced it would be banning any future licences for tourist flats in 43 of the most “saturated” neighbourhoods, including the historical centre, Trinidad, Perchel and El Palo.
The study also said that the average holiday apartment in Malaga earns 138 euros (£115) per night and has a guaranteed occupancy rate of 72 percent throughout the year.
There are currently more than 11,000 tourist apartments in Malaga city that are registered in the Andalusian Tourism Registry of the Junta (RTA), of which 7,915 are known to be active. In the Palma-Palmilla district, landlords with tourist flats earn a eye-watering 622 percent more in profits compared to those with long term rentals. As such, it is the neighbourhood with the most severe imbalance.
In the area around Malaga Port, one night in an Airbnb costs on average just under 179 euros (£149), while the average monthly rent is 652 euros (£543) – meaning the profitability increases by up to 574 percent.
The same story is also witnessed in the historical centre, where rental profits can surge by 461 perdent if homeowners switch to renting to tourists. In Campanillas, the imbalance stands at 549 percent and in Churriana at 517 percent.
Even in the cheapest neighbourhood for tourists, Bailen-Milaflores, while the average night in a holiday let is 84 euros (£70), the average monthly rent is 524 euros (£436). Assuming an average occupancy rate, switching from a home to a tourist let would still see your profits surge by 297 percent.
