Falling rental prices and shorter lettings are adding more woe to owners of holiday apartments in Spain, many of whom are already struggling with higher mortgage repayments and other costs such as local rates and community fees.
Average occupancy rates for this summer are expected to be between 60% and 70%. One rental agency in Gandia (Costa Blanca) has seen high season occupancy rates fall from 90% last year to a best case forecast scenario of 70% this year.
The horrendous state of affairs is being put down to a glut of holiday rentals, especially apartments on the coast, coupled with economic belt tightening in both Spain and key tourist markets such as the UK.
'Reality is returning to the holiday rental business,' said Carlos Codina, president of a professional tourism association in the Valencian Region. 'Nowadays rents are much more realistic,' he added.
Holiday rental prices are down by as much as €300 per week in some areas of the Costa Blanca, according to research by the Spanish regional daily Las Provincias. 'A typical 2-bedroom apartment now rents for €400 per week, compared to €600 to €700 per week last year,' one rental agent in Torrevieja said.
Average lettings are also getting shorter, as people cut holiday costs. 'We are getting very few requests for two weeks, and now work more by the week,' explained the same source.
Declines have been similar in other areas of the Costa Blanca. In Vinaros weekly holiday rental prices are down by between €150 and €200, and in Denia and Moraira, there is a good choice of apartments for rent from €300 a week, compared to €600 a week last year. One rental agent reports that demand for tourist lettings in Denia is in "free fall".
