Seasonal rentals in Málaga: now 37% of supply, and the new decree changes the rules

More than a third of the homes advertised for rent in Spain are now seasonal lets, and seasonal renting in Malaga carries even more weight: 37% of supply in the city, against a national average of 34%, according to idealista's study for the third quarter of 2026. Over the same period, long-term rental supply fell 10% year on year nationwide and 11% in the city.

The figures arrive in the middle of a legal overhaul. Since 8 October 2026, Royal Decree-law 29/2026 has been in force: it stops treating seasonal lets as a non-residential use and turns them into temporary residential leases with stricter conditions, namely a genuine reason for the stay, a general maximum of twelve months and a cap on the rent when contracts are chained. If you let out a property, or plan to buy one to let on the Costa del Sol, the two developments go hand in hand.

How big is the seasonal rental market in Málaga compared with other cities?

Across Spain, the supply of seasonal lets, which does not include holiday rentals, grew 7% over the past year, while long-term supply fell 10%. The cities where seasonal renting weighs most are San Sebastián (62%), Cádiz (61%), Bilbao (59%) and Barcelona (57%). Among the large markets with no stressed residential areas, the city of Málaga has the highest share at 37%, ahead of Madrid and Valencia (35% each), Seville (33%), Alicante (31%) and Palma (25%).

Year-on-year change in supply in the third quarter of 2026 (listings active between 25 June and 25 September) and share of seasonal lets in the total. Source: idealista.

The city of Málaga has a profile of its own. Seasonal supply has barely moved (+1%), so its share is rising mainly because long-term lets are disappearing (-11%). Madrid shows the opposite pattern: seasonal supply has soared 52% while long-term supply has fallen much less (-6%). And in Barcelona, where since January 2026 a Catalan law has applied rent caps in stressed areas to seasonal lets as well, both are shrinking: long-term supply by 22% and seasonal supply by 37%.

Within Andalusia, seasonal lets weigh even more in Cádiz (61%, second only to San Sebastián among all provincial capitals), Almería (44%) and Granada (38%), while Seville stands at 33% and Córdoba at 26%.

What has happened to rentals in cities with rent caps?

Every provincial capital declared a stressed residential area, where rent limits already apply, has lost long-term rental supply over the past year, with the sole exception of Girona (+4%). The steepest falls are in San Sebastián (-52%), A Coruña and Bilbao (-41% each), Pamplona (-33%) and Vitoria (-32%). In the four Catalan capitals seasonal supply has also collapsed: down 63% in Girona, 58% in Tarragona, 37% in Barcelona and 21% in Lleida.

For Francisco Iñareta, idealista's spokesperson, the figures confirm that “market intervention continues to create scarcity wherever it is applied”, although the portal points out that the quarter does not yet capture the effect of the October housing decrees. Andalusia has not declared any stressed residential areas, so the caps on rents for new contracts do not apply in the province of Málaga; even so, long-term supply in the city is falling at a similar pace to Valencia (-12%) and more slowly than in Alicante (-22%), two markets that do not apply controls either.

What does Royal Decree-law 29/2026 change for seasonal lets?

The decree redefines seasonal lets as temporary residential leases: those that meet the housing needs of a tenant who is away from their usual home for a justified reason that can be proven. These are the main rules, now written into the Urban Leases Act (LAU):

• A written reason: the contract must state why the tenant needs the home on a temporary basis. The burden of proof lies with the landlord and, if the reason is missing, the lease is treated as a standard residential tenancy from day one.
• Duration: more than 31 days and, as a general rule, no more than twelve months including extensions. If that limit is exceeded without a reason, or more than two temporary contracts are chained between the same parties for the same home, the first one is deemed a standard residential tenancy, with its minimum term of five years (seven if the landlord is a company).
• Rent: when successive temporary contracts are signed for the same home, the rent of the next one cannot rise by more than the IRAV, the index published by Spain's National Statistics Institute (INE) for rent reviews.
• Guarantees and costs: on top of the deposit, any additional guarantee is capped at one month's rent, a rent-default insurance policy cannot be required, and the tenant does not pay agency or contract fees or the property's taxes, such as IBI.
• Repairs: minor repairs due to normal wear and tear are the landlord's responsibility, and the landlord has five working days to respond. If there is no answer, the tenant may carry out the repair and deduct the cost from the following month's rent.
• Rooms: if a home is let room by room, the combined rents cannot exceed the rent for the whole property.

The rules do not list which reasons are valid. A job relocation, a course of study or medical treatment are the examples lawyers cite most often; long leisure stays, on the other hand, which are very common on the Costa del Sol in winter, fall into a grey area that is worth reviewing with a lawyer before signing.

Seasonal contracts signed before 8 October keep their existing rules until they expire, and then end with no extension; if they are renewed, they move to the new regime. Holiday rentals of up to 31 days remain outside the Urban Leases Act and are governed by tourism regulations. The decree is already in force, but it still has to be ratified by the Standing Committee of Congress, expected around mid-November.

What kind of homes are let on the Costa del Sol?

Our own rental portfolio shows a very different market from the city's. As of 20 October 2026 we have 614 homes for rent on the Costa del Sol, all priced by the month: 403 apartments and 211 houses and villas, with a median rent of €3,500 a month. Of those that state whether they come furnished, 92% are let fully furnished and ready to move into, a product that suits both stays of several months and long contracts.

Data from our portfolio as of 20 October 2026: homes for rent (apartments, houses and villas), excluding shops and offices. Median monthly rent and median rent per square metre; the furnished share is calculated on the homes that state it.

Marbella, Estepona and Benahavís account for 86% of the supply, with median rents of between €3,000 and €4,500 a month. Only 13% of the homes cost €2,000 a month or less, a share that rises to 44% in Mijas. It is an upmarket and very international market, where long contracts coexist with stays of several months, which is why contracts here should be reviewed against the new definition of temporary housing.

What should you do if you let property, or buy to let, on the Costa del Sol?

Before you buy, decide which rental model suits the property and your plans, because each one now follows very different rules:

Holiday rentals also require registration with the Andalusian Tourism Register and, from 1 December 2026, the decree applies 10% VAT to lets of furnished homes of 30 nights or less to the same guest, unless the property is the owner's main home. Lets of more than 30 nights remain VAT-exempt as long as they do not include hotel-type services such as cleaning or laundry.

• If you opt for temporary lets, document the tenant's reason (employment contract, enrolment, medical report) and keep the evidence: if you cannot prove it, the lease will be treated as a standard residential tenancy.
• Be conservative when calculating yields: more turnover means more empty months, more cleaning and more management, and the rent on chained contracts can no longer rise above the IRAV.
• Review any seasonal contracts signed before 8 October: they keep their rules until they expire, but a renewal falls under the new regime.
• Consider long-term letting: in a market with ever less long-term supply, a good stable tenant reduces empty months and management costs.

In short: do seasonal lets in Málaga still pay off?

Seasonal lets now account for more than a third of the market and for 37% in the city of Málaga, not because there are more seasonal homes, but because long-term lets are disappearing. Under the new decree, seasonal renting is no longer a shortcut: it remains a valid option for tenants relocated for work, study or health reasons, with well-documented contracts and yields calculated without optimism. If you own a rental property or are looking for one to invest in on the Costa del Sol, at EVS PROPERTY GROUP we help you choose the model that best suits each home.

This article is for general information only and is not a substitute for a lawyer’s advice on your specific case.

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