Fight against illegal holiday apartments: Mallorca is tightening the reins!

Fight against illegal holiday apartments: Mallorca is tightening the reins!

The Balearic island of Mallorca is facing a serious problem due to flourishing tourism and the associated holiday apartments. Popular holiday accommodation such as holiday apartments and fincas are in high demand, but the number of illegal holiday accommodations is increasing rapidly. These offers in particular put a strain on the housing market and create unfair competition. Derwest reports that the Spanish government is now planning measures to combat the growing number of unauthorized listings on platforms such as Airbnb.

What is particularly alarming is that it is estimated that there are over 65,000 unauthorized listings on Airbnb, around 7,000 of which are located in Mallorca. The island council sees the government's measures as necessary support in the fight against these illegal rentals. Particularly in urban centers, the population suffers from a lack of housing and overcrowded areas, which are further burdened by unregulated holiday rentals.

Illegal holiday apartments and their consequences

Statistics show that around a third of the holiday apartments offered in the Balearic Islands are rented without a valid license. The authorities in Mallorca have already taken their own measures against these illegal advertisements and have also identified illegal offers such as tents, boats and makeshift cabins. However, the situation remains tense and a comprehensive solution is necessary to end the gray areas in the holiday rental market.

In order to ensure the long-term legality of holiday apartment offers, a digital dossier with important data about the offer situation was handed over to the regional government. This could be a first step towards transparent regulation.

Platform reactions and legal challenges

However, Airbnb has announced that it will not accept the deletion. The company views the measures as illegal. The discussion about the responsibility of placement portals is a hot topic. The island council recently fined Airbnb 125,000 euros because it was proven that illegal vacation rentals in Palma had continued to be offered since 2018. Mallorca newspaper highlights that the Spanish Constitutional Court confirmed the ban on illegal rentals in February 2023.

Unlike other platforms, Expedia immediately removed the illegal listings, while Airbnb did not respond to the notification in November 2022. The island council considers the fine imposed to be lenient, especially in light of a previous, much higher fine of 300,000 euros that was imposed on Airbnb in 2018 and later overturned by the administrative court.

The business strategies of Airbnb and other platforms will continue to be closely monitored by the Balearic authorities to ensure possible compliance with local laws. It remains to be seen how the situation will develop, both for providers and for governments trying to protect the housing market and create a fair playing field for everyone.