In response to the urgent housing crisis, Barcelona City Council announced its intention to ban vacation rental housing by 2028. This measure was prompted by the difficulties in accessing affordable housing and the tightening of the real estate market, whose housing stock is diminishing due to the lack of new homes.
But how will this measure impact 2025? In this article, we will answer these questions and analyze the announcement and the response from platforms such as Airbnb and Booking.com, as well as the European Commission, which warns of the illegality of such a process.
Key reactions to the Barcelona ban
We must examine Barcelona’s present and past context to understand the measure announced by the current mayor, Jaume Collboni, whose battle against vacation rentals is nothing new.
Barcelona is one of Spain and Europe’s most prominent cities suffering from a real estate crisis caused by a lack of affordable and new housing. Between 2018 and 2022, the price of long-term rentals increased by more than 35%, primarily due to the increase in holiday apartments and mass tourism over those four years.
Thus, the different municipal governments have made the necessary efforts to mitigate this escalating issue. According to official data, since 2016, the city has seized more than 9,000 illegal apartments, frozen accommodation licenses, and canceled new permits since 2014. Despite this, the situation has not improved, and many locals struggle to find housing as they cannot afford the high rent or gain access to the shrinking buying market.
This new measure has marked a turning point in housing policies in Spain and Europe, as various other regulations have achieved no notable results. The Catalan capital intends to eliminate the 10,000 vacation rentals by 2028 by not renewing current licenses or issuing new permits.
The impact on Airbnb and other vacation rental platforms
Vacation rental platforms such as Airbnb, Booking.com, and Expedia have changed the tourism model, allowing travellers to stay in unique, affordable accommodations. However, they have also created challenges. In cities like Barcelona, the increase in tourism has impacted the local housing market and complicated the situation for residents forced to leave due to rising prices. The gentrification brought about by mass tourism has likewise affected local culture.
Platforms like Airbnb have created economic opportunities for many owners, allowing them to earn extra income as professional hosts. However, the lack of regulation has led to the proliferation of illegal and unlicensed tourist rentals, thus increasing the pressure on the local market.
In a letter to the Barcelona City Council, Airbnb has urged Collboni to reconsider policies against VUTs (housing for tourist use).
|
City |
Regulation |
Effects |
|---|---|---|
|
Barcelona |
Partial ban on Airbnb |
Supply reduction, price relief. |
| Amsterdam |
Limit of 30 nights per year |
Increased availability of housing. |
|
Paris |
Compulsory license to rent |
Control of the rental market. |
|
Berlin |
Severe restrictions in critical areas |
The balance between residents and tourists. |
Announcement of the ban
The city council announced in April 2024 that it intends to abolish current licenses for vacation rentals. This bold move would delist more than 10,000 dwellings and significantly affect many owners and seasonal rental agencies, marking a significant shift in Barcelona’s housing landscape.
Objectives of the regulation
The regulation has several essential objectives:
- Reduce tourist saturation in residential neighborhoods and areas classified as “stressed.”
- Residents’ access to housing is protected, mainly by lowering prices.
- Improve the quality of life in the city center, affected by excessive tourism.
- Ensure that tourism is sustainable and beneficial to the local economy.
This regulation is part of a broader effort to balance the coexistence of residents and tourists. With a population of 1.45 million, Barcelona receives more than 7 million tourists annually.
An important fact is that Barcelona’s entire city was recently classified as a stress zone, joining 140 other municipalities across Catalonia. Although it is customary in these cases that only several areas of the city are classified as stressed, the current level of real estate stress to which Barcelona has been subjected for some years is apparent.
Reactions to the announcement of the ban
The prohibition of vacation rentals in Barcelona has generated various reactions.
Politicians and local authorities at the Barcelona City Council believe the ban will help control mass tourism and facilitate residents’ access to housing.
Most parties agree that this measure will help free up the real estate market and limit prices, although others doubt the measure’s effectiveness and advocate for the construction of more social housing. The most pessimistic argue that it will negatively impact tourism and describe the measure as “interventionist.”
Homeowners’ associations
Homeowners’ associations do not agree with the ban. They argue that it will affect their income. Many owners bought properties to rent to tourists and now see their income sources endangered.
They also argue that it will negatively impact hotels and the hospitality sector, as there is not enough accommodation, either a holiday or hotel accommodation, to accommodate tourism.
Tourism sector workers
Tourism sector professionals are concerned about the measure as they fear the ban may reduce the number of tourists, thus negatively impacting the local economy. They propose that the city look for alternatives to regulate, not prohibit.
Both groups consider appealing the measure to the courts and the European Commission as illegal and excessive.
Consequences of banning vacation rentals in Barcelona
Reduced availability for short stays
Eliminating tourist rental properties in Barcelona may have several effects on the city. On the one hand, it may influence the long-term rental market by freeing up housing, but it will also negatively affect tourism and change how visitors find accommodation.
Possible increase in illegal rentals
Some landlords may try to circumvent the rules and continue to rent apartments as vacation rentals, leading to an increase in illegal rentals. They may also create bureaucratic obstacles to avoid choosing long-term tenants and continue to opt for short stays of up to one month, thus remaining within the legal framework. The local administration should monitor and control this so it does not happen.
Impact on tourism and the local economy
The new regulation seeks to control the number of tourists and balance the use of residential spaces. Although this decision aims to improve the local quality of life, it will undoubtedly affect the local economy.
If the economic impact of tourism is estimated at more than €12 million per year, Barcelona’s economy would be estimated to lose more than €1.55 million per year. This would profoundly affect the tourism structure, tourism-oriented businesses, and Barcelona’s position as one of the world’s most popular destinations.
How it will affect the flow of tourists
The decision could result in fewer visitors or opting for other cities with more affordable vacation rentals, potentially reshaping the city’s tourism landscape.
Some possible consequences include:
- Fewer young or budget tourists.
- Increased demand for traditional and luxury hotels.
- Changes in the type of tourism favor those who can afford more expensive alternatives.
Impact on the city’s economy
The ban not only affects tourism, but also the local economy. Many families depended on the extra income that Airbnb rentals provided. For them, they may see the following changes:
- Decreased sources of income for local homeowners.
- Decreased economic activity in areas previously popular with tourists.
- Difficulties for businesses that previously catered to Airbnb visitors.
Airbnb bans in the UK & US
Since late 2023, the United States and the United Kingdom have implemented significant regulations affecting short-term rentals like Airbnb. In New York City, Local Law 18, enacted in 2023, imposed stringent requirements on short-term rentals, including mandatory host presence during guest stays. While this led to an 80% reduction in Airbnb listings by mid-2024, it’s important to note that the intention was to alleviate housing shortages and reduce rental prices, a goal that, unfortunately, was not fully achieved.
Effective summer 2024, the UK has introduced new legislation requiring properties rented out for more than 90 days annually to obtain planning permission. In addition, a mandatory national register for short-term lets has been established. This register is crucial in enhancing transparency and ensuring regulatory oversight, reassuring all stakeholders.
National and international examples of the regularization of tourist rentals
Successful cases
Some cities have achieved a balance between tourists and residents. For example:
- Amsterdam: Rentals are limited to 30 nights per year per owner. This protects the housing market and reduces nuisance.
- Paris implemented a mandatory registration system, which helps control the number and length of rentals.
Lessons learned
From the international experience, several lessons can be drawn:
- Mandatory registration: helps control and regulate the number of rentals.
- Stay limits: reduce the impact on habitability.
- Regular inspections: ensure that standards are met.
These lessons can serve as a guide for other cities facing similar problems.
Is it possible to ban vacation rentals in Barcelona and other cities?
Although the political issue is substantial and has strong support, the reality may differ. The European Commission has announced that it could challenge the measure, as the secretary of the European Holiday Homes Association (EHHA), Viktorija Molnar, has denounced that the ordinary laws have not been respected.
The Commission finds the measures disproportionate if the aim is to increase housing availability, and it urges the agencies to implement policies more focused on this purpose. The Commission has noted the initiatives of other cities, such as Venice, Athens, or Amsterdam, whose objectives to reduce mass tourism have been to limit cruise ships or move leisure areas out of the city centers.
To provide answers to these questions, the European Commission has inaugurated a new exclusive commission for Housing, which will start working on these cases in 2025.
