With the advent of AirBnB many cities in Spain have experienced a significant surge in short-term tourist rentals, particularly in historic neighbourhoods and city centres. Property owners have taken advantage of often lax regulations to earn additional income. What started as a means to earn a little cash from a spare room has blossomed into a huge business. Whether this has been to the detriment of the traditional hotel industry is debatable. More likely, it has increased the volume of tourists, specifically in urban areas.
This increase has led to concerns about housing availability for residents and the overall character of these areas. In response, in February 2024, the Junta de Andalucía transferred the authority to regulate tourist accommodations to municipal governments.
This move empowered cities like Granada to tailor regulations to their specific needs and challenges. Following this devolution of powers, the Ayuntamiento de Granada undertook studies to assess the impact of tourist rentals on the city's housing market and community dynamics.
Findings on Tourist Rental Saturation
The studies revealed that short term rentals now provide approximately the same number of beds as hotels of all categories, with an alarming concentration of tourist rentals in certain districts of the city:
- Albayzín and Fígares: Approximately 24% of all dwellings are used as tourist accommodations.
- Centro: Tourist rentals constitute about 23% of the housing stock.
- Realejo: Around 13% of homes serve as short-term tourist lodgings.
These figures highlighted a pressing need for intervention to preserve residential housing availability and maintain neighborhood integrity.
Implementation of New Regulations
In response to these findings, the Ayuntamiento de Granada introduced several measures
- Moratorium on New Licenses: Effective from spring 2025, the city imposed a ban on issuing new licences for tourist accommodations in the Albaicín, Realejo, Centro, and Fígares neighbourhoods.
- Restrictions on Commercial Property Conversions: Starting January 31, 2025, the conversion of ground-floor commercial spaces into tourist accommodations has been prohibited. This measure seeks to prevent the reduction of commercial activity and maintain the traditional commercial fabric of these neighbourhoods.
- Transfer of Existing Licences To New Owners: In a controversial move (and one which, if challenged in court might well be defeated) any such transfer is treated as a cancellation of the old licence and an application for a new licence. As such, it must comply with newly introduced regulations. One such regulation is that if the apartment does not have direct access to the street, in other words if it is in any form of community such as a block of apartments or a house within the conversion of a former carmen, the proprietor must obtain the formal consent of at least three fifths of the owners before the licence can be transferred.
Impact and Future Outlook
Prior to these regulations, interim measures had already led to a significant reduction in new tourist rental licences, with a reported 98% decrease in approvals over six months. Formerly, it was only necessary to sign a declaration of responsibility to obtain a licence and inspections were rare. The challenge presented by the changing nature of the districts under pressure has led to a severe tightening up.
The Ayuntamiento de Granada has indicated that these regulations will be subject to ongoing review and adjustment in collaboration with the Junta de Andalucía to ensure their effectiveness. These steps are necessary to balance the benefits of tourism with the needs and well-being of residents and also to preserve the character of the districts which is, after all, what attracts tourists to the city.