The end of the open bar for tourist apartments. With a record influx of visitors to the country, protests against overcrowding in the Canary Islands, and the cost of accommodation becoming one of the issues that worry Spaniards the most, authorities have initiated accommodation regulations for tourists. The goal: to put an end to these. So much so that, in some cases, this directly means a mass closure. The trend is not new, but in recent months it has gained momentum and appears to be continuing, with movements in Catalonia, Madrid, Valencia, Seville, Malaga or Córdoba, as part of a long aggregate.

Sometimes this regulation change directly affects those who spend their savings to buy or renovate an apartment to use for tourist purposes, as Santiago’s attempt to reduce supply has just become apparent.

What do the numbers say? The tourist apartment business appears to be growing strongly throughout Spain, thanks to the increase in the flow of foreign visitors after the pandemic, the opportunities offered by platforms such as Airbnb or Holidu, and the high profitability it leaves to its owners, especially in the busiest destinations. Following the expansion of recent years, it is not surprising that there are cities where the holiday rental offer exceeds the hotel offer.

Latest data published by the National Institute of Statistics (INE) shows that 351,400 “tourist homes” with 1.75 million beds are distributed across Spain after experiencing a significant increase last year. In some cities, authorities noticed a significant difference between registered apartments and those advertised on the networks, with offers in practice far exceeding the official stock.

hit the brakes. This is what authorities are doing in different parts of the country. And more and more clearly. To prevent the apparent proliferation of tourist apartments and their offerings from complicating (even more) access to housing, city councils have begun to regulate holiday lettings. Madrid leaves a clear example. Just a month ago, the City Council launched an “action plan”, in the organization’s own words, calling for the “ordering” of apartments for tourist use, an immediate freeze on the issuance of licenses and toughening of sanctions.

Valencia recently implemented a moratorium; In Seville, they chose not to issue new licenses to the most saturated of their historic districts, and in Málaga, Córdoba or Vigo they also took steps to regulate or limit supply. Following demonstrations against saturation, Palma de Mallorca has shown it will toughen its stance on holiday rentals, and measures have been taken or are being drafted in Catalonia to regulate or even prevent speculation.

Santiago case. Although tourist apartments have entered the political agenda of many Spanish cities, one in particular has stood out for months. For details. And leaves for readings. In Santiago, which has a population of less than 100,000 but has an interesting real estate market due to the huge demand created by the university for student rentals and the huge flow of tourists stimulated by the Camino and its historical heritage, it was decided to also regulate the real estate market. Provision of housing available for travelers.

In general terms, as the SER chain points out, the new regulation demolishes tourist houses that do not comply with the Municipal Planning Plan or the Historic City Special Plan. This practically leads to the closure of a large part of the existing park. It is said that 650 tourist apartments will disappear and we will have no choice but to close them or withdraw into operation for only two months a year. The industry itself assures that it has already received shutdown orders.

go into details. With the change in legislation, houses used as regular residences can be used for tourist rental, provided they meet certain requirements and only for a certain period of time, a maximum of 60 days per year. The regulations also set well-defined limits for what are known as VUTs (housing for tourist use), clarifying where such housing can be located (restrictive in the historic centre) and what specifications it must meet.

“My savings are there”. The case of Santiago de Compostela is interesting because it affects hundreds of people; This includes those who, in the last few years, have bought and renovated apartments in the city for a very specific purpose: to rent them to tourists. Reports published in local and regional media in recent weeks also indicate that at least a significant portion of affected homeowners are families and small property owners who invest all or part of their savings.

“I left everything, to make it modern and beautiful, to buy tools, left blank… When I finished I went to the town hall to ask what paperwork I needed to do and they told me nothing was needed, so I registered with REAT and seven years ago “I started operating,” he says. A B C Lucas claims to have invested 35,000 euros to remodel an apartment in the historic center and rent it out to visitors. This income helps them cover the mortgage and expenses of the apartment they bought to live in another neighborhood of the city.

Hundreds of people were affected. Although numbers vary, overall the regulatory change will affect hundreds of hosts. SER notes that, for example, only a small fraction of the 816 tourist houses appearing in Xunta’s Register of Tourist Companies and Activities, namely 170, will comply with the requirements of the regulations. Other sources state that after the PGOM amendment approved at the beginning of 2023, only 58 of the hundreds of houses operating to date will be able to continue operating with a license throughout the year. Among other things, they must meet certain requirements regarding their location in buildings.

Those affected insist on the damage caused by the new regulation, warn of its impact on the city’s accommodation offer and are taking up their economic role. Another victim, Alberto, tells COPE: “I pay the community 40% more in exchange for supposedly greater use of the services.”

Return to the housing market? At least some of the homeowners in Compostela, which now welcomes tourists, are already warning that they will not reposition their apartments towards the traditional rental market or students. “If I put the students here during the course, I will have to pay for repainting and repairing it in the summer, it will not hurt me,” María assures. A B C. The most suitable alternative for him: to put his flat up for sale.

Picture | Juan Antonio Segal (Flickr)

in Xataka | The moratorium on tourist apartments in Valencia reflects a much bigger change: the end of the open bar for the sector in cities