Air Tourism Could Raise Spanish Rents 217 Euros Annually by 2031

The boom in air tourism could drive up average annual rents in Spain by as much as 217 euros by 2031, according to a new report from the environmental organization Transport & Environment (T&E). The study, conducted by the British think tank New Economics Foundation (NEF), identifies Spain as one of the European countries most vulnerable to this phenomenon.

The research analyzed twelve European economies and found that an increase in tourist arrivals by air puts upward pressure on housing prices. This effect, in turn, tends to be passed on to rental costs, especially in economies heavily reliant on tourism, such as Spain. The projected increase of 217 euros per year in rent is comparable to Greece and Portugal, though lower than Ireland, which is estimated to be the most affected country in absolute terms at 251 euros annually.

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the increase of tourist arrivals by plane puts upward pressure on housing prices, an effect that tends to be transferred to rents, especially in economies highly dependent on tourism like the Spanish one.

To reach these figures, the study utilized projected growth in air passenger traffic until 2031 from Eurocontrol, the European organization coordinating air navigation. It then calculated the impact of this growth on housing prices and estimated the portion of this increase that would be reflected in rental prices, assuming 80% of the housing price increase translates to rent. This figure was then distributed among households in each country.

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Often, when an airport is expanded, local communities are promised a great deal of economic benefit (...) but the low wages they offer poorly compensate for the increase in the cost of housing, infrastructure overload, and increased pollution.

Furthermore, the report highlights another consequence: while housing becomes more expensive, real wages in Spain's tourism sector have seen little change, even a slight decrease between 2008 and 2024, according to the study's data. Alex Chapman, head of Economic Policy at NEF, stated that promises of economic benefits from airport expansions often fall short when low wages fail to compensate for rising housing costs, infrastructure strain, and increased pollution.

The study also estimates that Spain could lose approximately 1 billion euros annually in non-real estate business investment by 2031. This occurs as rising housing costs divert capital towards property ownership rather than productive sectors. Chapman added that workers become trapped by their housing expenses, limiting their ability to pursue better employment opportunities or invest in their training. The report also notes that 44% of accommodation sector revenue in Spain is controlled by large companies, though the actual influence of platforms like Airbnb might be underestimated.

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Investment in non-tourist businesses falls as investors opt to accumulate properties. This leaves workers trapped by their housing costs, unable to switch to better employment or invest in their training.