Ibiza has seen a sharp decline in short-term holiday rentals in 2025 as Spain’s efforts to curb overtourism and regulate holiday homes begin to show results. According to tourism lobby Exceltur, the number of short-term tourist lets on the island dropped by nearly 50 percent compared to the previous year.

The supply of holiday rentals in Ibiza is now around 80 percent lower than in 2017, highlighting the scale of the crackdown. Across Spain, short-term rental listings fell by 4 percent in the second half of 2025 compared to a year earlier, marking the first nationwide decline on record. However, trends varied across the country’s 25 largest cities.

Spanish authorities have been tightening regulations in response to growing concerns from local residents, who say rising rents and property prices are being fuelled by tourist demand. In Ibiza, the local government has stepped up inspections to identify and remove unauthorised holiday rentals from the market.

Other popular destinations are also taking strong measures. Barcelona has announced plans to ban all holiday homes by 2028 as part of its long-term strategy to manage tourism pressure. Mallorca has joined Ibiza in enforcing stricter controls, with both islands recording the steepest drops in short-term rental supply.

However, not all regions are seeing a slowdown. Coastal cities such as Malaga and Almeria have continued to expand their tourist accommodation offerings, according to Exceltur, indicating uneven impact across Spain.

Exceltur vice president Oscar Perelli said that new rules requiring property owners to register homes before listing them on platforms such as Airbnb have played a key role in reducing supply. These regulations aim to bring better oversight and balance to the housing market.

Despite the restrictions, holiday homes continue to attract a significant share of visitors. Nearly one-third of tourists in Spain still choose rental homes, which generally remain more affordable than hotels. Holiday rentals had outpaced hotel growth for several years as Spain’s tourism boom placed it alongside France as one of the world’s top travel destinations.

Meanwhile, Ibiza recorded Spain’s highest hotel revenue per room last year at 170 euros, reflecting a 6 percent increase from 2024. The figures suggest that while rental supply is shrinking, demand for accommodation on the island remains strong.