Analyzing the impact of tourism on Vigo’s real estate market is an effective way to understand the current state of the sector. In such a constantly evolving landscape, this analysis helps uncover the latest trends.
First of all, according to data from the real estate portal Idealista, the average rental price in Vigo is around €9.9 per square meter, representing a 6.9% increase compared to last year.
However, the month when prices peaked in 2024 was June, reaching €10.2 per square meter. This rise is closely linked to high-season property management.
In this article, we analyze the growth of tourism and property investment in Vigo, along with the main trends shaping the market.
How has tourism in Vigo evolved?
According to local newspapers, the number of visitors in Vigo reached 151,204 by September 2024, reflecting a growth of more than 25% compared to 2023.
A key detail is that a significant number of these tourists were international visitors, with the highest concentration occurring during the summer months.
In fact, during the first two months of summer, Vigo recorded nearly twice as many visitors as A Coruña and three times more tourists than Oviedo. This data is particularly relevant, as it represents a substantial increase in occupancy rates for holiday rental properties.
Holiday rentals have become an attractive option in recent years, largely because they have integrated seamlessly into the local market.
They offer greater comfort and freedom—qualities that are often invaluable to tourists. Even for longer stays, holiday rental properties can be more cost-effective than traditional hotel accommodation.
Analysis of tourism’s impact on Vigo’s real estate Mmarket
Price adjustments over time
As with any market, Vigo’s real estate evolution has not been linear. Rental and sales prices have undergone several adjustments over time.
Between May 2021 and May 2022, prices increased by 5%, maintaining a clear upward trend ever since.
Price, however, is not the only influential factor. Real market conditions also play a crucial role. High property prices often reduce demand, as potential tenants and buyers must adapt to higher costs.
Key characteristics of Vigo’s real estate market
- Spacious properties: Vigo’s market typically offers properties ranging between 90 and 120 square meters.
- Wide price range: The variety of price points significantly influences buyer and renter experiences, both for property sales and holiday rentals.
- Diverse housing stock: A 2022 study revealed that 52% of properties in Vigo have two bathrooms, while 56% do not include a garage.
Supply and Demand Dynamics
When analyzing the relationship between supply and demand for long-term rental properties in Vigo, several challenges emerge. Supply remains limited while demand continues to grow.
According to analysts, one of the main issues is the shortage of buildable land, which restricts new housing development.
Historic rise in rental prices
Vigo’s rental market has experienced a steady and sustained price increase, largely driven by limited supply.
Additionally, recent changes to Spain’s Housing Law have also impacted the market.
This situation further boosts investment in holiday rental properties in Vigo, as some landlords fear non-payment risks associated with long-term contracts—concerns that are largely mitigated with short-term tourist bookings.
Current trends in the real estate market
After understanding the impact of tourism on Vigo’s real estate market, it’s essential to examine where the sector is heading.
The Rise of service automation
Technology has had a significant influence on the real estate sector.
Smart home solutions and integrations such as chatbots help streamline communication and ensure constant availability. However, successful holiday rental management shouldn’t rely solely on technology.
The most effective strategy combines automation with personalized customer service, improving efficiency without losing the human touch.
Growing focus on sustainability and inclusion
Google has highlighted sustainability and inclusion as key factors in customer acquisition strategies. These elements also make logistical sense within real estate marketing and industry trends.
Examples include pet-friendly properties or homes adapted for guests with reduced mobility—both increasingly valued and positively perceived in today’s real estate market.
Boost the performance of your investment
At Cabana Rentals, we are here to help you maximize the return on your holiday rental property.
You can request our holiday rental property management services and gain access to a comprehensive solution designed to take your investment to the next level.