Barcelona, a pioneer in strict short-term rental regulations, is once again at the center of industry attention. The city’s latest ban on vacation rentals is now facing significant legal hurdles, a development that short-term rental managers should closely monitor. Mayor Jaume Collboni recently announced a plan to phase out about 10,000 tourist rental properties by 2029. This includes halting new license issuances and not renewing existing ones starting November 2028.
Airbnb vs. Barcelona
However, this move has triggered a strong backlash from key industry players and associations. Airbnb is urging Barcelona to reconsider its stance. The company argues that the city’s decade-long crackdown on short-term rentals has failed to address housing affordability and overtourism issues. Airbnb presents some compelling data:
- Despite fewer Airbnb listings, Barcelona has seen a 70% jump in rents and a 60% rise in average home prices since 2014.
- Vacant homes in the city outnumber short-term rentals 8 to 1.
- 75% of tourists in Barcelona stayed in hotels and hostels in 2023.
- Hotels have six times more beds than short-term rentals in the Old Town area.
- Hotel prices have surged by over 60% in the past decade.
Graphs by Airbnb:
European Holiday Home Association (EHHA) has filed an official complaint with the European Commission
Meanwhile, the European Holiday Home Association (EHHA) has filed an official complaint with the European Commission. The EHHA contends that Catalonia’s short-term rental rules, which affect Barcelona, are unjustified and disproportionate, potentially violating EU law.
The EHHA’s argument centers on the EU Services Directive, which mandates that any restrictions on short-term rental services must be justified, non-discriminatory, and proportionate. The association claims that the Catalan Housing Decree (3/2023) fails to meet these criteria and is based on unproven assumptions rather than solid evidence.For short-term rental managers, this situation presents several key considerations:
- Operational Impact: Managers in Barcelona may face increased scrutiny and potential business limitations.
- Legal Precedent: The outcome could influence regulations in other European cities grappling with similar issues.
- Advocacy Role: It underscores the need for industry players to engage with local authorities and support industry associations in their advocacy efforts.
- Data Importance: The focus on evidence-based policymaking highlights the need for accurate operational data and impact assessments.
- Risk Mitigation: Consider diversifying your portfolio across different regions to spread regulatory risk.
The EHHA is pushing for a formal EU infringement procedure against Spain, while Airbnb calls for collaboration on new rules that support local hosts and sustainable tourism.As a short-term rental manager, staying informed about these developments is crucial. The Barcelona case could shape industry regulations across Europe and influence the sector’s future. Remain adaptable, engage with local communities, and be prepared to adjust your strategies in response to evolving regulations.While Barcelona’s situation poses challenges, it also offers an opportunity for the industry to showcase its value to local economies and work towards sustainable solutions benefiting both residents and visitors.
