Ban on registering new tourist homes comes into force in 43 Málaga neighbourhoods
The limitation will apply to areas where tourist homes represent 8% of the total number
The City Council of Málaga has approved this Monday January 13 its snappily named 'General Urban Development Plan' (PGOU) which bans 43 neighbourhoods from registering any new tourist homes. The measure was approved last December and seeks to put limits on the most tourist-saturated areas in the city.The measure has been brought into place in order to control the pressure that certain areas feel as a result of tourism. Therefore, the total limit is established in those neighbourhoods where tourist housing exceeds 8% of the total residential stock.
Furthermore, a second zone has been established consisting of 32 neighbourhoods with a rate of tourist housing equal to or greater than 4.53%, where the limit of tourist registrations will only be allowed to reach up to 8%. The third zone has been established for areas with less than 4.53%.
In these two areas where the number is less than 8%, the new tourist housing sill be allowed, but will be subject to compliance with the municipal instruction. Moreover, at this time, there are more than 12,000 holiday apartments in the city of Málaga.
The Junta de Andalucía autonomic government is processing the deregistration of more than 1,500 tourist apartments in the city at the request of the City Council. If the retroactivity were a legal possibility, 3,461 tourist accommodation units would have to be eliminated in Málaga because of the current over-saturation.
According to a study, there are 4,600 houses in total in the neighbourhood of historic centre. If this number was limited to 8% it would mean that 368 short stay accommodations would be allowed in the city.
Instead, at this moment there are 1,693 tourist accommodations in the historic city centre. The difference is large and possibly unsustainable if many of these properties are banned from being used as tourist accommodation and this could affect tourists numbers and the money they spend in the city.
The study also concludes that the increase in tourist housing removes the supply of long-term rentals and vacant housing. However, the revenue is much higher for people who are renting out the home for tourists.
Holiday accommodation brings in almost 45,000 euros on average in Malaga for the home owner. This number is five times the amount received through residential properties. Moreover, Tourist accommodation accounts for almost 75% of the tourist accommodation places offered and is concentrated in four districts in the city centre.
Furthermore, as previously stated, tourist housing has a significantly higher economic profitability than conventional rentals, and once banned the evidence would suggest that to regain some of the profits lost, the owners of these properties will raise their long-term renting prices.
Therefore, despite many believing that the house prices will fall once certain properties are banned from being used by tourists, the evidence suggests that this may not be the case. However, only time will tell if this cap of properties will be a net positive or negative in the city.
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