Palma becomes first Spanish city to ban Airbnb-style rentals

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Palma becomes first Spanish city to ban Airbnb-style rentals

By
25 April 2018

By | 25 April 2018

From July, the capital of Balearic Islands will only allow Airbnb in single-family homes

Unlicensed flat or apartment owners in Palma de Mallorca will no longer be able to rent their property to tourists through Airbnb-like services as authorities have adopted new measures to protect the local population from dramatic rental price increases.

Palma de Mallorca will only allow tourist rentals in single-family homes — Andrei Bortnikau / Shutterstock Group Created with Sketch. Palma de Mallorca will only allow tourist rentals in single-family homes — Andrei Bortnikau / Shutterstock

Starting in July, Palma will only allow travellers in to rent single-family homes – isolated houses or chalets – except those located in protected locations, in the vicinity of the airport and in areas of non-residential use such as industrial estates.

The government of the Balearics has taken the decision after conducting a number of studies and analyses that have revealed a dramatic increase of non-regulated tourist housing between 2015 and 2017. The offers rose by 50 per cent leading to an increase in rent across the city by 40 per cent.

“There is a parallel between the development of the phenomenon of holiday rentals and the increase in residential rental prices,” the deputy mayor of Urbanism, Jose Hila, who defends the measure, told El País.

“The tourist stays affect the arrangement and social coexistence in buildings and neighbourhoods and the services have already affected access to housing,” said Hila, who insists that the City Council acts “to protect the resident.”

Palma's authorities have adopted a measurement to protect the local population from a dramatic rental price increase — Shutterstock Group Created with Sketch. Palma’s authorities have adopted new measures to protect the local population from dramatic rental price increases — Shutterstock

Currently, Palma de Mallorca property owners offer around 11,000 tourist rental places while only 645 of them are licensed. The authorities believe that the measures can set a trend for other cities that struggle with dramatic rental price increase caused by non-regulated services.

Palma is a determined and courageous city, we have agreed on it based on the general interest and we believe that it will set the trend for other cities that will understand that balances are key”, Hila said.

“All European cities are being transformed from one day to the next by this offer, it is necessary to bring order, there will be holiday rentals in Palma, but where it has to be,” said Hila.