New legislation could be introduced in the Canary Islands, Spain, this year, which would see a harsh 10 year ban placed on new buildings and residential properties being turned into tourist lets
The Canary Islands Government is planning to introduce a new law which would see a ban on new builds becoming holiday lets for 10 years.
Under the Sustainable Regulation of Tourist Housing Law, newly built properties would be banned from being used as tourist rentals for 10 years after construction and prohibit entire residential building rom being converted into holiday lets. The bill, which was presented on February 6, is set to undergo parliamentary debate before a final vote.
The aim of the legislation is to restore balance in the housing market by implementing stricter controls over the expansion of holiday rentals on the islands.
The new measures are expected to halt property speculation, where real estate prices are set based on potential short-term rental income. The new law would also establish rules for properties classified as residential, stating that residential properties intended for tourist stays must be at least 10 years old. This will be verified through the date construction was completed, the first occupancy licence, a municipal certificate, a cadastral certification (recording of the real estate) or any other legally valid documentation.
The Government also expressed that the law would help to prevent developers from designing and selling prosperities specifically for tourist use from the outset, reports Murcia Today.
There would also be a limit on the amount of tourist rentals within a residential building. The cap per building would be 10 tourist rental beds per single residential building, and there must be a 1:10 ratio between tourist and residential units. There will also be restrictions on the total square metres allocated to holiday lets.
The Canary Islands Parliament is due to debate any potential amendments to the bill before voting on a final version of the law. If passed, the Government would push for its implementation by the end of 2025.
The current housing crisis in the Canary Islands has seen a severe shortage of affordable housing for locals, as well as surging rental prices and a large gap between the number of homes needed and the current construction rate. The issue has been exasperated by the influx of tourists and short-term rentals, which outpace the availability of long-term housing for local residents.
The situation is causing increasing concern as locals are struggling to find homes, and as a result, other sectors such as healthcare and education have been impacted as there is a lack of affordable housing for professionals.
On April 20, 2024, nearly 200,000 people across the Canary Islands rallied against mass tourism, environmental degradation, and the housing crisis. Protesters were seen carrying banners with slogans including “my island is not your amusement park” and “Canaries are not for sale; they are loved and defended”.
In Tenerife specifically, the protests saw over 80,000 participants and involved protesters calling for an end to controversial projects in the area, a tourism tax and stricter regulations.