Other southern European tourist destinations complaining about the excess of tourists and overly expensive local rents include Lisbon, Venice and Barcelona.
The Valencian Communityin Spain, is going to impose fines of up to 600,000 euros to unlicensed and black market short-term rentals, as well as Airbnb-type apartments. This is an attempt to curb excessive tourism in the area, which has also increased pressure on local public facilities and driven up rental prices in key European tourist destinations.
According to Airbtics, an Airbnb analytics company, the average Airbnb or short-term rental accommodation in Valencia has a average occupancy rate of 79%, and is booked for 288 nights a yearWith an average daily rate of €93, hosts typically earned around €27,000 for the entire year in 2023.
As of April 15 this year, there were 9,128 active Airbnb listings, according to Airbtics. Some of the neighborhoods in Valencia with Increased demand for short-term rentals They are the City of Arts and Sciences, the Silk Exchange and the Valencia Cathedral.
However, the short-term rental market in Spain includes several more apartments than just Airbnbs. As such, it is already a very established market and plays a key role in supporting the local economy.
The shadow economy creates worrying security problems
In recent months, there has been a Rising rents on the black marketdriven by both local owners and foreign expatriates who want to enter the lucrative Spanish short-term rental market.
Nuria Montes, Valencia Tourism Officerreferred to these black market rentals in statements collected by ‘Financial Times’: “We cannot allow no kind of underground economy in accommodation. They escape any kind of control. Obviously, They don’t pay taxesWe do not know if the owners fulfill their obligations to the workers.
“But the main thing is the security. They do not comply with the obligation to communicate the identity of clients to the authorities. We don’t know if they follow the rules for fires, emergencies, evacuation plans“.
According to Montes, it is very possible that there is 50,000 or more of these apartments unregulated short-term rentals throughout the Valencian Community.
Currently, Valencia requires owners of short-term rental properties to: Tourist license from the Valencian Tourism RegistryTo obtain this license, they must submit key information, such as the property data, its intended use, compliance with quality and safety standards and the owner’s dataOther necessary documents include the title deed, house plans, energy efficiency certificates, proof of insurance, etc.
Valencia is the latest in a list of tourist cities in southern Europeas Lisbon, Barcelona, Venice and Splitwhich have announced measures to control overtourism.
Barcelona has already revealed that is working to phase out all Airbnb-type apartmentsreaching a number of approximately 10,000 by the end of 2028. This will also include rentals operating with a valid license.
Venice has announced that will restrict the size of tourist groups to 25 people per groupas well as clamping down on cruise ships, while Split residents protest more against party tourists, especially those from the United Kingdom.
Why the short-term rental market is booming in Spain
Spain has long been a tourist attraction point in Europefor its climate, bustling cities, rich culture and solid infrastructure. In recent years, This has led to a boom in accommodation options, such as villas, cottages and apartments, rather than the more traditional hotels.
In full swing cost of living crisisvacation rentals and short-term rentals offer a cheaper alternative to tourists who still want a vacation, but don’t want to spend too much on hotels. In many cases, they also provide a more authentic vacation experience, with more flexibility, amenities and privacy.
He Rise of digital booking services and online platforms The rise in short-term rentals has also contributed to the rise in short-term rentals, as holidaymakers find it even easier to book a wide range of options. In some cases, disreputable online booking sites have also allowed unlicensed landlords to list their properties, often through cheaper pricesthus attracting more visitors.
At the same time, Spanish real estate companies have also invested heavily in marketing to Attract more foreign owners and investors to the Spanish marketl short-term rentals, often promising them huge profits.
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