The impact of COVID-19 on the short-term rental market in Spain: Towards flexibilization?

Abstract

The Spanish real estate and its ‘sea and sun’ tourism model, were profoundly disrupted during the Great Recession of 2008–2014 As a result, hedge funds and their speculative operations have favoured an intense process of urban touristification in the largest Spanish cities, especially over the past ten years. The aim of this paper is to examine how the COVID-19 crisis has triggered shifts in the supply of short-term rentals and the type of demand of such rentals. By taking into account such changes, we will address the potential changes that the current pandemic scenario might bring between the ‘classical’ real estate market and short-term rentals in Spain.