ACROSS Spain, housing policy has become one of the most politically charged debates.
In cities like Barcelona, the drive to protect residents from rising rents has led to aggressive regulation, including plans to eliminate all short-term rental licenses by 2028 and divide the city into controlled zones, effectively reducing long-term rental availability in favor of tenant protection.
In contrast, Andalusia’s approach mixes investor confidence with selective local action. While the regional government has generally resisted imposing sweeping price controls on long-term rentals — a stance that makes the region appear more investor-friendly than both the national government and regions like Catalonia — local town halls are now shaping the practical landscape on tourist rentals, a key part of the real estate sector.
One of the most visible examples is Málaga, where the city council has frozen new tourist rental licenses for up to three years while it revises urban planning rules to balance tourism with housing needs. This moratorium applies across many neighborhoods identified as saturated with viviendas de uso turístico (VUT), aiming to curb further conversion of residential units into holiday lets.
Similarly, Fuengirola’s city hall has moved to limit the registration of additional tourist rentals after studies showed their strong impact on local housing availability. Such measures can help protect long-term residential options for locals but also introduce regulatory complexity that investors must navigate.
By contrast, in municipalities like Mijas — particularly popular coastal areas like La Cala de Mijas — there are fewer active limitations on tourist rental licensing. While Andalusian law requires owners to obtain official tourist licenses (VUT) and comply with regional registration requirements, many parts of Mijas have not adopted moratoria or stringent quotas at the municipal level. This has kept the short-term rental market relatively more open, appealing to investors seeking returns from tourism-related property.
This blend of regional policy and municipal discretion helps explain why many investors view Andalusia as less hostile to property development and rental income than cities like Barcelona or regions with stricter rent controls. The national government’s broader housing initiatives — including rent regulation and classification of stressed housing areas — have been criticized for reducing the supply of long-term rental properties, as seen in the significant drop in new rental contracts in cities like Barcelona after controls were imposed.
However, investor-friendly perceptions come with trade-offs. Local limits on tourist rentals in cities such as Málaga and Fuengirola reflect growing pressure to safeguard housing for residents. The challenge for Andalusia will be balancing investor confidence with real improvements in housing availability, especially as demand from both tourists and long-term renters continues to rise.
Contact Christofer Fogelberg at chris@startgroup.com or call on +34 952 904 890
Click here to read more Property News from The Olive Press.
