Innovation in Wake of Market Crisis: Spanish Property Owners Evolve Business Models

April 1, 2020
Share this Post: 

To answer the call of abandoned vacation rental locations, hundreds of homes originally listed on sites like Airbnb, are being transferred to traditional rental properties in Madrid

Spanish property listing marketplace, Idealista, has seen its numbers of listings increase in the wake of property in other markets around the world suffering due to the Coronavirus pandemic. 

Owners of tourist apartments are using their accommodations to house displaced essential personnel as one way to combat the ever changing market. 

Spain's government has put in an order to suspend all business services that are not deemed essential during this time and real estate is just one of the markets to suffer such a fate. 

This isn't stopping real estate professionals from keeping their businesses floating. Notoriously, tourist rentals have been operating illegally since Mayor Manuela Carmena passed legislation that forced them to have a municipal license to operate. However, with a lack of strict control and stricter legislation on the part of the Community of Madrid, they are continuing to operate with little sanctions.

When it comes to pricing, no expert is willing to say what they are expecting to happen to the market while the virus rampages the globe. Rental prices have been tilting upwards in Spain, and according to analysis, the 'Airbnbization' of vacation rentals into traditional rentals is part of the problem. Where a demand is made, price will rise to meet it. 

The pattern is a clear one—Multifamily property owners have two markets to operate within: rental and tourism, with an emphasis on whichever one makes them more money. 

April 1, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Rightmove Opt 1
Rightmove Appoints Former Just Eat MD, Matthew Bushby as Its New CMO

British market leader Rightmove has announced the appointment of Matthew Bushby as its new Chief Marketing Officer. Bushby joins the...

Read More
Shutterstock 603344765
Casai Merges with Fellow LatAm Short Term Rentals Specialist Nomah After Job Losses

The Mexican short-term rentals marketplace operator Casai has merged with its Brazilian counterpart Nomah. Existing investors including a16z and Monashees...

Read More
Shutterstock 147091049
REA India Sidesteps Agents with Country's First User Subscription Service - 'Housing Premium'

The REA India-owned real estate portal has announced the launch of a new user subscription service that aims to...

Read More
North Media Posts Q2 Financial Results—BoligPortal on Track

North Media, the media group and operator of Danish Portal BoligPortal, released its Q2 2022 financial report, with results "as...

Read More

Editor's Pick