Investing in tourist areas: what to look at beyond the summer

Investing in tourist areas does not depend only on record visitor numbers. The article analyzes annual demand, entry price, costs, regulation, seasonality, liquidity and differences between holiday rentals and hospitality.

Invertir en zonas turísticas: claves más allá del verano. Investing in tourist areas: beyond summer. Investir en zones touristiques : au-delà de l’été. Investire in zone turistiche: oltre l’estate. Investir em zonas turísticas: além do verão. In Tourismusregionen investieren: mehr als Sommer.

Lucía Hernández

11 September 2026

6 min read

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Spain closed 2025 with a new tourism record: 96.8 million international visitors, 3.2% more than the previous year. Spending also reached an all-time high, with 134.712 billion euros, up 6.8%.

These figures help explain the real estate appeal of many coastal destinations, islands and cities with strong tourism activity. But a good year for tourism does not automatically turn a location into a good investment. To analyse it, you need to look well beyond occupancy in July and August.

The entry price, year-round demand, regulation, management costs and how easy it is to sell the asset can be just as important as the number of tourists the destination receives.

From peak season to year-round demand

For years, one of the most visible strategies in tourist areas has been to buy a home to generate income through holiday rentals. Strong peak-season demand can make it possible to charge higher rents during certain periods, although that snapshot says little about profitability over the year as a whole.

A highly seasonal destination may record high occupancy in summer and much lower demand during the rest of the year. That is why it is more useful to analyse whether there are several drivers capable of supporting the market: tourism, resident population, economic activity, good connections, second homes or international demand.

It is also worth distinguishing between different phenomena. Tourism generates demand for accommodation, while home purchases by foreigners generate residential demand. They may coincide in the same locations, but they are not the same thing.

The latter carries especially significant weight in some Spanish tourist markets. In the third quarter of 2025, foreign buyers accounted for 43.29% of home purchases in Alicante, 31.84% in Málaga and around 29.5% in both the Balearic Islands and Santa Cruz de Tenerife.

The most expensive destination does not always offer the highest return

A real estate investment can generate returns in two main ways: through recurring rental income and through a potential appreciation of the asset.

They do not always move in the same direction.

Markets with greater international recognition may have very solid demand, but also high acquisition prices. If the purchase price grows faster than rents, gross rental yield compresses.

That is why a premium location can offer good prospects for demand and value preservation and, at the same time, a lower current yield than other less well-known markets.

Gross yield, moreover, is only the starting point. In a home intended for tourist rental, expenses can carry particular weight:

  • community fees and taxes;
  • maintenance and utilities;
  • cleaning;
  • marketing;
  • professional management;
  • insurance;
  • periods without occupancy.

A high rate in peak season is not enough on its own to know how much the owner will ultimately obtain at the end of the year.

The analysis should therefore focus on the relationship between entry price, expected income and real costs, not only on how much can be charged during the weeks of highest demand.

Regulation can completely change the investment

Tourist rentals also include a risk that should not be taken for granted: the possibility of legally operating the home for that use.

Regulation depends on the autonomous community and the municipality and may include licence requirements, planning restrictions or specific conditions. There may also be restrictions arising from the homeowners’ association itself.

That is why, before acquiring a home with the expectation of using it for holiday rentals, it is essential to check which uses are permitted and under what conditions.

An investment that only works economically with tourist rental can completely change its profile if that use becomes restricted.

Regulation is also one of the reasons why the growth of aggregate tourism does not necessarily benefit all forms of accommodation in the same way. Hotels, tourist apartments, holiday homes and residential rentals respond to different regulatory frameworks and operating models.

Seasonality, management and liquidity: the risks that are not visible in August

Dependence on peak season is another essential factor.

Rather than looking only at maximum occupancy, it is worth estimating:

  • how many months there is sufficient demand;
  • what rates can be sustained off season;
  • what the asset’s annual cost is;
  • and how much the result depends on a small number of weeks.

Who manages the property also matters. Direct operation requires time and organisation, while delegating it to a professional reduces that burden but adds costs that affect net yield.

If the acquisition is financed through a mortgage, the cost of debt adds another variable. The same home may have a given real estate yield and deliver a different result on the capital contributed depending on the level and cost of leverage.

And, as with any direct real estate investment, there is liquidity risk. Even in highly sought-after destinations, selling takes time and the final price will depend on market conditions at that moment.

Not all tourism real estate is holiday housing

The relationship between tourism and real estate goes far beyond buying a home by the sea.

Within residential, there may be developments aimed at primary or second homes in markets with strong tourism or international demand. On another level sits hospitality, which includes hotels, resorts and aparthotels.

They are very different investments.

In a home, the analysis focuses mainly on the property, demand and, if it is rented out, its ability to generate income. In a hotel, by contrast, the real estate asset is closely linked to the operation of an active business.

Variables such as occupancy, average daily rate, operator, positioning of the establishment, management contract, investment needs and cash flow become decisive.

The hotel sector continues to concentrate a significant volume of institutional investment in Spain. In the first quarter of 2026, it recorded 811 million euros of investment, around 13% of the country’s total real estate volume in the period, according to Colliers.

The figure demonstrates capital’s interest in the segment, but it does not mean that any hotel asset is attractive. As in tourist residential, the quality of the location and demand must be analysed together with the price and the specific risks of the transaction.

The best tourist destination is not always the best investment

Spain’s tourism records create a favourable environment for numerous destinations, but the number of visitors is only one variable.

An area may receive millions of tourists and still be unattractive for an investor if purchase prices are too high, activity is concentrated in just a few weeks or regulation limits the intended use. Likewise, a less well-known destination may offer a better balance between price, demand and growth potential.

That is why, before investing in a tourist area, it is worth asking not only how much tourism it receives, but what really supports demand throughout the year, how much it costs to access the asset, what income it can generate after expenses and what risks could alter those forecasts.

The destination’s appeal is the starting point. The quality of the investment depends on everything that comes after.

About the author

Lucía Hernández

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Lucía Hernández es licenciada en Periodismo y Humanidades por la Universidad Carlos III de Madrid. Con experiencia en medios digitales, marketing y comunicación, colabora con Urbanitae escribiendo sobre inversión, educación financiera y mercado inmobiliario. También puedes leerla en la revista Elle, donde cultiva otra faceta de su mirada periodística. Le interesan las historias bien contadas, ya sea en un artículo, en un libro o en una buena conversación.

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