Holiday rental boom squeezes out residents in Spain's Malaga

In the southern Spanish city of Malaga, a holiday rental boom is pushing out long-term residents, according to local doctors and residents. Carlos Carrera Lopez, a 53-year-old doctor who heads the Old Town residents' association, has witnessed the gradual disappearance of his neighbourhood due to the influx of tourists. He warns of a "mass exodus" caused by mounting tourist pressure, stating that the very existence of the neighbourhood is at stake.

Malaga, with a population of around 600,000, welcomed a record 1.83 million visitors in 2025. Nearly one in two homes in some streets of the port city is used for short-term tourist accommodation, more than double the number from 2020. This trend has led to a 40% increase in tourist apartments over the past year, making Malaga Spain's second-largest market for this type of accommodation behind Madrid and ahead of Barcelona.

The rapid rise in tourist rentals has contributed to rising rents, which have more than doubled over the past decade. Despite accounting for only a small share of the city's housing stock, these rentals have put increased pressure on rent prices. Francisco Lopez, a 52-year-old food bank worker, laments the disappearance of neighbourhood life, replaced by a constant stream of cleaners to prepare holiday apartments for new guests.

In response to the growing concerns, the city council has approved a reform of its urban development plan, suspending the granting of new tourist rental licences for three years. The aim is to find a balance between preserving the city's cultural heritage and economic opportunities generated by the tourism sector. While many residents welcome the transformation Malaga has undergone since the conservative party's mayorship in 2000, tensions remain over the proliferation of tourist apartments.