New laws for short-term rentals: chaos in the vacation rental market!

New laws for short-term rentals: chaos in the vacation rental market!

A regulation is coming into force in Spain that will result in far-reaching changes in the short-term rental sector. From now on, property owners must obtain a license to rent out their apartments to holidaymakers. They are also required to obtain a number of permits. These new laws aim to improve control and transparency in the vacation rental business, while Consumer Protection Minister Pablo Bustinduy highlights strengthening the rights of renters and guests. Loud orf.at must provide guests with comprehensive information, including their banking details. This data is transmitted to a national database to ensure greater transparency.

The responsible ministry has found that many advertisements on platforms such as Airbnb and Booking.com do not have license numbers, and it remains unclear whether the landlords are private or commercial. Stricter guidelines apply to companies in particular, which also include the establishment of consumer complaint offices. These measures are part of a wider plan to tackle the housing crisis in popular holiday destinations such as Mallorca, Barcelona and Madrid.

Background to the real estate crisis

In the last ten years, rental prices in the Balearic Islands have increased by around 158 percent. In recent years, this has repeatedly led to protests against overtourism and the effects of “rich foreigners”. Nationwide demonstrations against this housing crisis took place in April 2023. Prime Minister Pedro Sanchez has stressed that housing use should be given priority over tourism purposes. This is particularly relevant given the fact that around 27,000 properties were purchased by non-EU citizens for rental purposes in 2023 alone.

Tourism in Spain is booming, with the number of international guests rising to 17.1 million in the first quarter of 2023. However, this development goes hand in hand with increasing pressure on the housing market. Spending by holidaymakers increased by 7.2 percent to 23.5 billion euros during this period, helping to stimulate the Spanish economy. Despite these positive figures, experts criticize the lack of construction activity, which they say is more responsible for the real estate crisis than tourism itself.

Regulations in international comparison

The problem of short-term rentals is not just an issue in Spain. In many European cities, including Lisbon, Amsterdam and Milan, demonstrations for affordable housing are commonplace. Critics fear that platforms like Airbnb will further increase rental prices, making increased regulations and political measures necessary. In many cities, such as Málaga, holiday apartments already have to meet specific requirements, while in other regions the regulations vary greatly.

The EU is planning a regulation for short-term rentals by May 2026, which will require extensive data collection by providers. Experts are already noticing that Airbnb and similar platforms can be identified less and less with the original concept of the sharing economy, as entire blocks of flats are often reserved for tourist purposes. Studies show that in Barcelona, ​​rental prices in areas with high Airbnb density have increased by up to 7%.

The discussion about the effects of the sharing economy on the housing market is also intense in Germany. While some studies, such as a study by the Fraunhofer Institute, show no influence of Airbnb on rental prices, others show that rents in Berlin are increasing due to short-term rentals. In light of these developments, new platforms such as Home Exchange and Fairbnb.coop, which are more oriented towards community values, are becoming increasingly popular.