632,369 Rental Contracts End in 2024 — Spain Tenants Brace for Sharp Rent Hikes

A turning point for the rental market: what 2024 means for real estate Spain

More than a momentary rise in asking prices, this year marks a structural shift in the Spanish rental market. The wave of lease expirations that began with pandemic-era contracts is forcing a broad reset: 632,369 rental contracts will reach their five-year term in 2024, according to internal Ministry of Rights and Social Affairs data. Because many of those agreements were signed during the low-rent period of 2020–2021, more than 1.5 million people are exposed to higher rents or the risk of displacement.

This article explains what is happening, why it matters for tenants, landlords and investors in the property market Spain, and what practical steps each group should consider as the market adjusts.

The scale and mechanics: why so many contracts end now

Spain’s rental-contract timing means the pandemic years are now cycling out of the market. Key facts:

• 632,369 rental contracts reach the five-year mark in 2024.
• Those contracts affect over 1.5 million people.
• Many of the leases were signed at historically low rent levels in 2020–2021.

Lease law in Spain sets protections during the life of a tenancy but does not force landlords to renew when the fixed term expires. That legal gap is the catalyst: when a five-year contract comes to an end the owner can either offer a new contract at current market levels or refuse renewal and seek a new tenant or a different use for the unit.

We have seen an increase in non-renewals as owners see an opportunity to capture higher market rents or to convert units to tourist and short-term rentals. Analysts and tenant groups have dubbed the phenomenon the "great renewal" because of the volume and speed of contract turnover.

Why rents are rising: supply shortages, tourism returns and generational pressure

Multiple market forces are converging to push rents up in Spanish cities:

• Real estate platforms and analysts show rents have risen steadily since the pandemic, with many urban areas recording accumulated increases of more than 20% since 2021.
• The return of tourist and short-term rental demand after pandemic travel restrictions has pulled units out of the long-term market in popular cities and coastal towns.
• New housing supply has failed to keep pace: public housing development remains limited and private development has not offset the increased demand for rentals.
• Vacancy rates are low in key markets, giving landlords leverage when contracts expire.

The result is a squeeze on available, affordable rentals. One anecdote that circulated widely: a tenant in Málaga saw a listed rent move from €400 to €800 when renewing. The original report described that as an increase of about 36%, but simple arithmetic shows that rise equals 100%. That inconsistency is worth noting because it signals the speed of change and the confusion it creates in public debate. Whether increases are 20%, 36% or 100% varies by case, but the direction is clear: negotiating power has shifted toward landlords.

Legal framework and limits: what the LAU does and does not do

Spain’s Ley de Arrendamientos Urbanos (LAU) determines the rules governing residential leases. Key practical points for tenants and landlords:

• The LAU limits rent increases during an active contract by tying certain adjustments to indices such as the Consumer Price Index (CPI). Those protections apply while the contract is in force.
• The LAU does not require landlords to renew leases at the old rent when a fixed-term agreement expires.
• Some regions implement additional measures. Zones designated as "zona tensionada" (high-demand rental zones) apply controls that can limit how rents change during a contract, but these controls cannot force an owner to extend a contract at the previous rate.

This legal framework provides partial protection: tenants are sheltered from sharp in-term increases but not from displacement or repricing when a contract ends. That legal distinction explains why many tenants who felt secure now find themselves at risk.

Landlord motives and investor behaviour: higher yields and strategic conversions

From the landlord and investor perspective, economic logic is straightforward. Owners can:

• Reprice existing units to capture current market rates and raise gross rental yield.
• Convert long-term rentals to short-term or tourist lets where permitted, often generating higher nightly revenue.
• Sell to institutional buyers or funds that target rental growth in major cities.

For buy-to-let investors, the expirations are a market opportunity. Higher rents and low vacancy can improve cash flow and valuations. But this is not risk-free. Political debate over tenant protections is intensifying, and investors who reposition large portfolios into short-term rentals may face regulatory pushback in some municipalities.

In our analysis, investors should weigh near-term yield gains against potential medium-term regulatory or reputational risk. Local political pressure can produce measures that limit conversion to tourist lets or expand tenant protections — outcomes that would compress returns.

Where this is concentrated: hotspots and case studies

Pressure is not uniform across Spain. The most acute problems show up in:

• Major cities (Madrid, Barcelona) and popular coastal provinces where tourist demand competes with resident demand.
• Parts of Andalusia including Málaga, where anecdotal cases of very large nominal increases have appeared.
• Catalonia, where supply is described as at historic lows and local policy debates are intense.

Example: In Barcelona’s Poble-Sec, a building previously used for social or public rental was sold to a private investment fund. Tenants received official notice that contracts would not be renewed. That case shows how ownership change accelerates contract turnover and can lead to rapid resident displacement when alternative affordable options are scarce.

Practical guidance for tenants: how to protect yourself and options to consider

Tenants facing contract expiry need a plan.