Malaga, in southern Spain, will prohibit new short-term rental permits in 43 neighbourhoods, part of a broader strategy to address local worries that the growth of tourism rentals is making housing unaffordable for residents. This restriction aligns Malaga with other Spanish cities, including Barcelona, which aims to phase out tourist rental licenses by 2028.
The decision, announced by Malaga’s city council, specifically targets areas where more than 8% of homes are already used for short-term rentals. In Malaga’s centre, 65% of tourist accommodations are short-term rentals, leading to increased rents and a decline in permanent residents. The city council said it would assess these restrictions annually.
Spain’s tourism surge and a growing number of foreign remote workers have boosted demand for short-term rentals, often at the expense of long-term housing. With 40,000 beds in holiday rentals compared to 14,000 hotel beds, Malaga Mayor Francisco De la Torre highlighted the city's need to balance tourism with local living standards. To further manage the impact of tourism, De la Torre has proposed a tax on overnight stays in holiday rentals, directing funds towards subsidising social housing rents. However, implementing this would require changes to national law.
Spain has seen rental demand grow among migrants and low-income households over the past decade, with landlords often favouring short-term rentals due to higher returns.
