Barcelona, a Spanish holiday destination, is set to implement a citywide ban on all short-term rentals in response to rising complaints that tourism is exacerbating the local housing crisis and driving up rents. The decree, approved by the Government of Catalonia on November 7, 2023, will be enforced in several Catalan municipalities struggling with housing accessibility. This move aims to convert the 10,101 tourist flats currently operating in the city back into residential properties, thereby increasing the housing stock available to locals.
The decree stipulates that no new urban planning will be approved that allows permanent residential homes to be used for tourism purposes. By November 2028, all tourist lets in Barcelona are expected to be eliminated, ensuring that the city’s housing is primarily for residential use.
“More supply of housing is needed, and the measures we’re presenting today are to provide more supply so that the working middle class does not have to leave the city because they can’t afford housing,” said Jaume Collboni, the Mayor of Barcelona. “This measure will not change the situation from one day to the next. These problems take time. But with this measure we are marking a turning point.”
Since 2017, the Special Plan on Urban Tourist Accommodation (PEUAT) has regulated tourist lets, resulting in significant enforcement actions. Over 10,500 fines have been issued, and 9,700 closure orders have been executed since 2016. Additionally, the number of monthly advertisements for tourist lets has been drastically reduced from 6,000 to between 300 and 400, thanks to diligent monitoring and required removals by tourism platforms. During this period, 3,473 illegal tourist flats have been reclaimed for permanent residential use.
In addition to the short-term rental ban, Barcelona is working on making a measure that reserves 30 per cent of new homes and major renovations for protected housing more effective. Since its approval in 2018, only 91 homes have been added to the city’s housing stock under this measure, with just 8 executed. The new proposal aims to enforce the 30 per cent quota more effectively and include options for transferring protected homes to other sites and involving social developers in executing these projects.
The City Council’s right of first refusal on acquiring resulting homes will continue. Currently, there are 5,000 homes in progress at various stages of execution, which will result in over 3,300 flats becoming available during the current term of office. These homes are being developed through the Municipal Institute of Housing and Renovation (IMHAB) and partnerships with third parties, including non-profit organizations, the metropolitan operator HMB, and the Catalan Land Institute (Incasòl).
This comprehensive approach aims to not only alleviate the housing crisis but also ensure that Barcelona’s housing market serves its residents’ needs more effectively.
