Expanded Report with Sources and Additional Insights (August 2025)
This report provides a detailed overview of the long-term rental market in Benidorm, Spain, including its key trends, underlying dynamics, and practical considerations for both landlords and prospective tenants.
I. Market Overview and Key Trends
Benidorm’s long-term rental market is currently a landscape of high demand and limited supply, which has created a highly competitive environment and led to significant price increases. Unlike many destinations that have a distinct tourist season, Benidorm’s appeal is year-round, attracting a diverse range of long-term residents and foreign investors.
1. Sustained and Diverse Demand
The demand for long-term rentals in Benidorm is driven by several key demographics:
- Retirees and Expatriates:
Benidorm’s pleasant climate, excellent healthcare infrastructure, and relatively lower cost of living compared to other European cities make it an attractive destination for retirees. This demographic often seeks stable, long-term housing solutions. Spain’s public healthcare system (SNS) is rated among the best in Europe, and Benidorm has multiple private clinics as well as quick access to hospitals in Alicante. - Digital Nomads and Remote Workers:
The rise of remote work has brought a new wave of long-term renters to Benidorm. These individuals are drawn to the city’s vibrant lifestyle, reliable internet infrastructure, and the opportunity to experience a different culture. Spain’s Digital Nomad Visa, introduced in 2023, has accelerated this trend by allowing non-EU remote workers to live in the country legally for up to 5 years - Domestic Residents:
The city’s strong local economy, driven by tourism and services, ensures a steady need for housing among Spanish residents working in the area. Benidorm’s hospitality and construction sectors continue to generate employment, particularly in the Levante and Poniente zones.
📌 Market Evidence:
As of mid-2025, Benidorm has one of the lowest rental vacancy rates in the Valencian Community, supporting the claim that long-term demand is constant.
This consistent, multi-faceted demand ensures that properties rarely sit vacant, making the market highly attractive to investors.
2. Scarcity of Long-Term Rental Stock
A primary dynamic shaping the market is the severe lack of properties available for long-term lease. This scarcity is a direct consequence of several factors:
- Profitability of Short-Term Rentals:
The booming tourism industry in Benidorm means that short-term holiday rentals are often far more profitable for property owners. They can charge significantly higher rates during peak seasons, and this financial incentive often outweighs the stability of a long-term tenant. According to AirDNA, occupancy rates in Benidorm’s holiday rentals exceed 80% in summer 2025, with nightly rates averaging €160. - Legal Framework and Landlord Risks:
The Spanish Urban Leasing Law (Ley de Arrendamientos Urbanos – LAU) provides robust protections for tenants in long-term contracts. A standard one-year contract can be extended by the tenant for up to five years. For landlords, this can be a deterrent as it limits their ability to adjust rent prices to keep pace with the market and makes it difficult to regain possession of the property.
Additionally, the fear of “okupas” (squatters) remains prevalent. Although a new “Anti-Okupas” Law passed in March 2025 now allows for evictions within 48 hours, many landlords remain cautious due to past experiences. - Reduced New Construction:
Recent data from the Colegio Oficial de Arquitectura Técnica de Alicante (COATA) shows a sustained decrease in the number of approved residential projects in Benidorm over the past two years. This means the existing housing stock is under intense pressure from increasing demand. While several large developments (e.g., Sunset Sailors and Gran Delfín) are underway, they will not be completed until at least late 2026.
3. Soaring Rental and Property Prices
The combination of high demand and low supply has inevitably led to a sharp increase in both rental prices and property values.
- Rental Prices:
Benidorm’s average price per square meter for rentals has surged, making it one of the most expensive locations in the Valencian Community. Prices in prime areas like Poniente can exceed €18/m², and an average 80 m² flat was priced at around €1,216 per month in early 2025. By August 2025, that average has climbed to €1,357/month—up nearly 12% in under a year. - Property Prices and Investment Returns:
According to BestYieldFinder, long-term rental yields in Benidorm range between 5.9% and 6.5%, depending on property size and location. For example, a 60 m² flat in Levante purchased at €180,000 can generate over €1,000/month in rental income. With tourism inflating resale values, appreciation is also strong: property prices have risen 8.4% year-on-year in Benidorm’s core neighborhoods.
II. Practical Considerations for Prospective Tenants
Navigating the Benidorm long-term rental market requires preparation and a clear understanding of the process.
1. Finding a Property
- Real Estate Agents:
The most reliable way to find a long-term rental is by working with a local real estate agent. They have access to listings that may not be publicly advertised and can assist with the legal complexities of the rental process. Many also offer bilingual services for international tenants. - Online Portals:
Websites like Idealista, Fotocasa, and Habitaclia are widely used. However, be prepared to act quickly, as desirable properties are often rented within hours or days of being listed. Some agents recommend setting up automatic alerts and being ready with documents to make an immediate offer.
2. Documentation and Financial Requirements
Landlords will require several key documents to verify your financial stability:
- Proof of Income:
This is a crucial requirement. Landlords will ask for a valid work contract, recent pay slips, or proof of a pension or other regular income. For digital nomads or remote workers, bank statements or proof of remote employment may suffice. - Passport/ID:
A valid form of identification is mandatory for all contracts, including NIE (Foreigner Identification Number) for longer stays. - References:
While not always required, having references from previous landlords or employers can strengthen your application, especially in competitive areas.
3. Understanding the Rental Contract
- Contract Duration:
The standard long-term contract is for a minimum of one year. Tenants have the right to renew this contract annually for a total of up to five years, unless the landlord needs the property for personal use. - Deposit and Guarantees:
The standard security deposit is one month’s rent. However, due to the high demand and landlord concerns, it is common to be asked for additional guarantees, such as a second month’s deposit, a bank guarantee, or even income insurance. - Rent Increases:
Under current law, during the first five years of the contract, rent can only be updated annually based on the Consumer Price Index (CPI), which provides a degree of financial stability for the tenant. In 2025, Spain’s CPI has remained around 2.3%, limiting drastic rent hikes.
4. Budgeting and Additional Costs
When budgeting for a long-term rental, you must account for more than just the rent:
- Utilities:
Tenants typically pay for electricity, water, and gas, with bills averaging €100–€150/month for a small family. - Community Fees:
In apartment complexes, there may be community fees for the maintenance of shared areas like swimming pools and gardens. These are typically paid by the landlord, but it’s important to clarify this in the contract. - Internet and Telecoms:
Basic broadband and mobile plans in Spain cost around €35–€50/month, depending on speed and provider. - Contingency Fund:
Having a financial buffer for unexpected costs, such as minor repairs or appliance replacement, is always a good idea. Tenants are responsible for minor wear-and-tear repairs under Spanish rental law (Article 21 LAU).
III. The Future Outlook
The long-term rental market in Benidorm is expected to remain robust. The combination of sustained international interest, limited new construction, and the ongoing appeal of short-term rentals will likely continue to put upward pressure on prices and keep the market competitive.
- The upcoming completion of new developments like Sunset Sailors, Gran Delfín, and InTempo’s new residential upgrades may slightly ease the supply pressure, but demand is expected to outpace new offerings through 2026–2027.
- With digital nomads, retirees, and foreign investors continuing to choose Benidorm, and local authorities restricting short-term rentals in some areas, long-term rentals may become even more in-demand.
- For landlords, this is a highly favorable climate—with low vacancy, strong yields, and increasing legal protections. For tenants, securing a good rental means acting fast, being legally prepared, and budgeting carefully.
Sources:
- Spanish Digital Nomad Visa Overview – Gov.es
- CBSAGE Benidorm Rental Report, Q2 2025
- AirDNA Benidorm Short-Term Market Report – 2025
- El Mundo – “Nueva Ley Anti-Okupas Aprobada en 2025”
- COATA – 2025 Q2 Building Activity Bulletin
- SER Benidorm – Alquilar un piso cuesta 1.350€ al mes
- BestYieldFinder – Benidorm Rental Yield Data, 2025
- INE – Spanish CPI Updates 2025
FAQ
Why is it so hard to find a long-term rental in Benidorm?
Benidorm’s long-term rental market suffers from limited supply and high demand. Many property owners prefer short-term holiday rentals, which are more profitable, especially during the high tourist season. Additionally, tenant-friendly laws (e.g., five-year contract renewals) and fears of illegal occupation (okupas) make landlords cautious about offering long-term leases.
How much does a typical long-term rental cost in Benidorm in 2025?
As of August 2025, the average cost for an 80 m² apartment is around €1,357/month, or €16.97 per square meter. In high-demand areas like Poniente Beach, prices often exceed €18/m². Utilities and other costs are usually not included, so tenants should budget extra.
What documents do I need to rent a property long-term in Benidorm?
You’ll typically need the following:
1. Valid passport or ID (plus NIE number if staying long-term)
2. Proof of income (employment contract, pension, or bank statements)
3. References (optional but helpful)
4. Security deposit (1–2 months’ rent; sometimes more)
5. Landlords may also request a bank guarantee or rental insurance for added security.
Are there legal protections for tenants in Spain?
Yes. Under Spain’s Urban Leasing Law (LAU):
1. Tenants can renew contracts yearly for up to 5 years
2. Rent increases are limited to annual CPI adjustments
3. Landlords can only reclaim the property early under certain conditions (e.g. personal/family use)
4. These laws offer strong stability to tenants, though landlords may find them restrictive.
What are the extra costs besides rent?
Tenants are usually responsible for:
1. Utilities (electricity, water, gas): €100–€150/month
2. Internet and telecoms: €35–€50/month
3. Occasional minor repairs
4. Community fees (for shared facilities) are generally paid by the landlord, but always confirm in the contract.
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