Spain’s Malaga to Ban Short-Term Rentals in Over 40 Neighborhoods

Skift Take

Malaga’s politicians are aiming to relieve the strain on affordable housing by tightening regulations on short-term rentals. However, given the current popularity of southern Spain, this move could shift the pressure to nearby destinations.

Dawit Habtemariam

Tourists will no longer be allowed to book short-term rentals in large parts of Malaga, Spain, according to new rules introduced by the city council on Thursday.

Short-term rental registrations will be prohibited in 43 neighborhoods, including El Ejido, La Malagueta and Pedregalejo. The ban targets areas where more than 8% of homes are short-term rentals.

The new rules will take effect in early November and last for up to five years, reported Spain-based The Olive Press.

In September, Malaga had over 9,300 listings, up from 7,930 last year, according to AirDNA, which collects data on short-term rentals. The average daily rate was $161.75, up from $138.29. Occupancy stood at 82%, up from 77%.

Short-Term Rental Bans

Malaga is the latest destination to restrict short-term rentals. In June, Barcelona announced plans to ban short-term rentals by 2029.

The new restrictions will make short-term rentals in Malaga more expensive and push demand to other parts of Spain, said Bram Gallagher, economist at AirDNA.

“If short-term rentals are restricted, occupancy will increase even more, and rate growth will accelerate as travelers have fewer options. It may even push some to neighboring cities along the southern coast,” he said.

Demand for Spain and the rest of southern Europe has been “gigantic” and “unbelievable,” particularly from the American market, said Andrew Nocella, executive vice president and chief commercial officer for United Airlines, at the Skift Global Forum.

In the first eight months of 2024, the number of international tourists visiting Spain peaked, reaching 64.3 million, according to Spain’s data agency.

The restrictions follow mass protests by locals in Malaga in June, expressing frustration with the negative impacts of tourism, including rising housing costs and overcrowding.

Large demonstrations against mass tourism have also occurred in Barcelona, Mallorca, and the Canary Islands.