San Sebastián (or Donostia, as it’s known in Basque) has been a favorite retreat for aristocrats and artists for over a century. Today, it’s still one of Spain’s most exclusive destinations, attracting:
🌟 Gastronomy lovers – Home to the highest concentration of Michelin stars per capita in the world, San Sebastián is a foodie’s paradise. Travelers come here specifically for the pintxos bars, world-class dining, and culinary festivals.
🎭 Cultural travelers – Events like the San Sebastián International Film Festival, the Jazzaldia Festival, and the Semana Grande celebrations ensure year-round tourist flow.
🏄♂️ High-end beachgoers & surfers – La Concha Bay is one of the most beautiful urban beaches in Europe, attracting luxury travelers, while Zurriola Beach is a hotspot for surfers.
💰 High-spending visitors – Unlike other Spanish destinations focused on budget tourism, San Sebastián’s visitors are wealthier and willing to pay premium prices for accommodations.
📈 With high-end tourism on the rise, the demand for premium STR properties is increasing, making this the perfect moment to invest.
WHO IS BOOKING STRs IN SAN SEBASTIÁN?
San Sebastián’s STR market isn’t about mass tourism—it’s about quality over quantity. The typical STR guest here is different from what you’d find in Barcelona or Málaga.
- Luxury travelers & couples – Many visitors are here for a romantic or gourmet getaway, prioritizing stylish, high-end apartments with views of La Concha.
- Surfers & active travelers – While San Sebastián has a refined reputation, Zurriola Beach attracts an entirely different crowd: young, active tourists looking for sporty stays.
- Festival-goers & event tourists – The Film Festival alone brings thousands of visitors every September, filling up STRs well beyond the usual high season.
- Families & slow travelers – San Sebastián is ideal for long stays. Many visitors rent entire apartments for extended vacations, making larger properties and luxury serviced rentals especially attractive investments.
For STR investors, this means a highly profitable mix of short, high-rate stays and longer premium bookings.
SAN SEBASTIÁN’S STR MARKET: HIGH-END, HIGH REWARDS
San Sebastián isn’t a budget-friendly destination, and that works in favor of STR investors.
- Average Daily Rate (ADR) is $310, significantly higher than in many other Spanish cities.
- Gross yield is at an impressive 13.8%, one of the strongest on the Spanish market.
- Occupancy rate stands at 65%, with peaks reaching 86% during summer months, demonstrating consistent demand.
📊Compared to Madrid, where STR competition is fierce, San Sebastián offers a smaller but more profitable market with higher-value bookings.
💡 Investing in high-quality properties in prime locations (La Concha, Parte Vieja, or near Zurriola Beach) is key to maximizing returns.
WHAT TYPES OF STR PROPERTIES WORK BEST IN SAN SEBASTIÁN?
San Sebastián’s prime locations for STRs are La Concha Bay, Parte Vieja, and Zurriola Beach, where demand remains high throughout the year.
Properties overlooking La Concha Bay are the most sought after, attracting luxury travelers willing to pay premium rates. A well-designed, high-end apartment in this area can generate consistently high occupancy and ADR.
Old Town properties in Parte Vieja are also extremely popular, especially among foodies and festival-goers. Tourists looking to experience the city’s vibrant culinary scene prefer to stay within walking distance of the best pintxos bars and cultural hotspots.
For a different kind of STR investment, Zurriola Beach offers a strong market for younger, more active travelers, including surfers and digital nomads. Stylish, modern lofts and mid-sized apartments in this area can perform exceptionally well, especially during peak surf season.
Unlike in other Spanish cities, budget rentals are not the key to success in San Sebastián. Investors who focus on well-furnished, premium properties in prime locations will see the best returns.
WHY NOW IS THE TIME TO INVEST IN SAN SEBASTIÁN
While San Sebastián has long been a prestigious destination, its STR market is still developing.
📈 Tourism is growing, but STR saturation remains low, meaning investors can still enter before the market becomes too competitive.
🏆 The city’s reputation for luxury and gastronomy ensures long-term demand, especially from high-spending travelers.
💼 Property prices are stable, but demand for premium STR accommodations is increasing, making now the ideal time to secure high-value real estate.
Unlike other Spanish STR hotspots facing overcrowding and strict regulations, San Sebastián still offers flexibility for investors willing to focus on high-end rentals.
CONCLUSION
San Sebastián isn’t just another Spanish beach town—it’s a high-end STR paradise with elite tourism, cultural prestige, and a thriving luxury market.
With higher ADRs, a wealthy traveler base, and lower competition than other major Spanish cities, San Sebastián is one of the smartest STR investment opportunities in Spain today.
🔹 The key to success ? Quality over quantity. The investors who focus on premium, well-located properties will see the biggest rewards.
Q&A – SAN SEBASTIÁN STR MARKET
Is San Sebastián a good city for short-term rental investment?
Yes. With high-value tourism, cultural events, and a growing luxury market, San Sebastián offers strong returns for premium STR properties.
How does San Sebastián compare to Madrid or Barcelona for STR investments?
Unlike Madrid and Barcelona, San Sebastián has less STR saturation and higher-value bookings, making it a more exclusive, less competitive market.
What is the best location to buy an STR property in San Sebastián?
La Concha Bay, Parte Vieja, and the Zurriola Beach area are the most profitable STR zones, attracting luxury travelers, festival-goers, and surfers.
