Barcelona eliminating vacation rentals

That's more of a political bluff than anything else. There'll be a reduction, yes, but I seriously doubt the law won't be challenged in court.

Enric, is it an election year? Just an attempt to get reelected?

Allan, we recently had some local elections where the ruling party for the last decade or so was voted out. My guess is the new guys are trying to make good on their election promises to restore Barcelona after years of overtourism damage.

Honestly something drastic had to be done, there are whole swathes of Barcelona's old town that have become no-go zones for locals because of the overtourism and the rising costs associated

I hope for Barcelona’s sake they follow through.

Hope not. The hotels that are equivalently priced to the AirBnBs in just about any city are not nearly as nice or have the same amenities or space. It seems like a lot of AirBnBs we stayed in Spain last month were extensively remodeled/updated and well kept up.

I am not sure how much upward pressure on rents/property values can be attributed to the AirBnB phenomenon versus the injection of obscenely large amount of money in circulation by various governments during the world wide recession to prop up their economies. Janet Yellen among others do not understand that the more money in circulation leads to inflation. It's relatively easy to hide the increased cost of food/consumable products by having smaller portions--shrinkflation is a clever way of hiding inflation.

Also seems to me that if Barcelona indeed succeeds in getting rid of short term rentals the tourists would then shift to staying at some of the short term accommodations and will increase the occupancy rates of existing hotels. The total number of tourists will not decrease--the tourists may be grumpier though due to lower quality accommodations.

I think this is a trend that is here to stay. If 10,000 apartments come up for sale over the next 3 or 4 years it should reduce the upward pressure on prices and will make maybe 15,000 or more barceloní and barcelonina voters happy. Currently, residents are being pushed out into suburbs or other areas further from the city centers. This affects not just lifestyle, but also puts more pressure on roadways and public transit.

It also becomes a win for the politicians as they then approve new hotel projects that create high paying jobs in construction and generate ongoing taxes. Almost every city has small sections of neighborhoods that the locals would gladly see torn down and replaced, even if that replacment is a hotel. Thrown in a new metro stop and a grocery store or two and the whole nieghborhood will be ready to buy you a glass of Cava. But don't worry, hotel chains will jump in, build more hotels and keep the tourists coming. Much to the chagrin of those voters who thought this was all about them.

The timeline stretches out to 2030, so a gradual introduction. We know that Paris cracked down just as tourism ramped up and nobody got too cranky, despite another poster’s worry. OTOH, we‘ve see an increase in aparthotels.

• Barcelona has not granted new licenses since 2014, when it froze supply at 9,600 units
• The ban takes effect by the end of 2028 so that’s four and a half years.
• There were 695,000 residential properteis in Barcelona, there will be 705,000 by the end of 2028 (<1.4% increase) plus what ever gets build new.
• There are approximately 39,000 hotel rooms in Barcelona, so lost are 20% of the accommodation rentals in Barcelona.
• It appears that a previous ban on new hotels may be lifted.
• Over half of the citizens in Barcelona live in home owned by one of the occupants of the home.
• The majority of the short term rental apartments are owned by Citizens of the city.
  (okay, so I did not beat the research to death and dont have three sources for each. So if anyone finds error, let me know)

So, like I always say on this subject, this comes down to the will of the people. That has to be respected.

This may provide them with everything they want, or they may find that they have to modify the rules as time moves forward and they see the outcome.

Berlin did something like this, then had to back track a bit a few years later, and now reports are they are swinging back to an attitude of being more restrictive again. Starting this month Vienna becomes very restrictive on short-term rentals.

Hopefully these places find the magic bullet that works for them. It will be interesting to watch and see how it plays out.

It also becomes a win for the politicians as they then approve new
hotel projects that create high paying jobs in construction and
generate ongoing taxes.

jhk, this is where the real test will be. I know one city where banning new short-term rentals did drive down rental costs ... but also value. I cant prove this, but after watching what happened in the few years after the bottom fell out of the real estate market in this one European city, I strongly suspect that apartment owners went looking for the best sale price to unload their loss, and that was often to hotel chains. In two years, in just one tourist dependent district of the city, I have seen six apartment blocks turn into hotels. Probably a loss of 300 to 500 apartments where the short term rentals were less than 100 units. And no one is screaming "bad hotel".

What ever decisions are made in Barcelona or Timbuktu lets hope they are less idologically driven and more comprehensive and well thought out.

This is a complex issue, as those of you living in similarly touristy cities know. Every city has a "maximum capacity"—much like any venue—beyond which coexistence becomes difficult. Barcelona has 1.7 million residents, and each year it hosts 18 million tourists (for leisure, business, events, etc.).

Today I'm feeling chatty, so for those interested, here’s some background on the topic:

### Geography

Unlike Paris or London, which are situated on plains with few geographical obstacles allowing for expansion as the city grows, Barcelona is nestled between two rivers, a mountain range, and the sea, occupying just 101 sq km in its metropolitan area. This makes it one of the densest cities in the world, with 16,000 inhabitants per sq km (41,000 per sq mile). The city can only grow vertically, but this has been legally restricted for decades to preserve its historic landscape, filled with ancient buildings. Vertical growth would not solve the issue, as the surface area for services would remain the same, just with more users.

### Organic Growth and Immigration

After the Spanish Civil War (1936-1939), Barcelona experienced various waves of immigration, especially from poorer regions (Andalucia, Extremadura, Galicia), increasing the city's population by 50% in just 20 years. Housing growth was insufficient and chaotic, exacerbated by extreme corruption during Franco’s dictatorship (1939-1977) and punitive policies from Madrid towards areas -like Catalonia- that very actively opposed the fascist uprising in 1936. The "baby boom" (1960-1970) further increased the population by 20% in 10 years. For decades, there were shantytown neighbourhoods on the outskirts of Barcelona where thousands of immigrants from the aforementioned regions were crammed. Additionally, the "baby boom" generation began to seek independence in the 90s, which significantly increased the demand for housing.

Post-dictatorship, and with the new municipal governments and the partial restoration of the legitimate government of Catalonia (the Generalitat), orderly growth policies were implemented, the shantytown neighbourhoods disappeared, and cities in the metropolitan area (Hospitalet, Cornellá, Badalona, Sant Cugat, etc.) began to expand, with tens of thousands of homes built to meet the baby boom generation's demand. However, most of these were private developments with few public housing projects. For many decades, likely due to the hardships endured during the long dictatorship, the local mentality was to "buy" a home rather than rent, to have something secure to pass on to their children. With relatively affordable prices and banks offering loans at very low interest rates, the 80s and early 90s saw spectacular growth in the number of homes in Barcelona and its metropolitan area. Paradoxically, the city's population decreased by nearly 20% as residents moved to suburban areas seeking a better quality of life. For some, the option to pay the same for a house with a garden as for an apartment in Barcelona was highly appealing. For others, paying up to 50% less for an apartment in the metropolitan area compared to Barcelona was an irresistible option.

On the other hand, Barcelona is internationally renowned, attracting many tourists and a significant number of immigrants from various countries. Many come seeking a better life, while others simply want a change of scenery or to experience new ways of living. As of 2024, of the 1.7 million residents, 25% (430,000) are foreign nationals, with the largest groups including over 50,000 Italians, 28,000 Colombians, 25,000 Pakistanis, 21,000 Chinese, 20,000 Peruvians, and 18,000 French. Whether for economic reasons or other motives, the pressure on the city has grown enormously in recent decades.

-part 1 of 3-

In the mid-90s, Catalonia experienced two significant immigration waves from Latin America and North Africa, increasing the city’s population by 15%. Most of these immigrants came for economic reasons, and the metropolitan area's housing shortage was already becoming apparent, leading to higher costs. This situation resulted in subdividing existing homes and reducing the size of new ones to increase supply. While it was common to build 100-150 m² apartments in many Barcelona neighbourhoods in the 70s and 80s, from the mid-90s onwards, apartment sizes dropped to 60-80 m² or less. Additionally, large apartments in areas like l'Eixample, ranging from 200 to 300 m², were reformed to create individual units of 60-70 m², thereby increasing the housing capacity without new constructions, considering the limited available land in the city.

Barcelona also attracts a different group of immigrants who come for non-economic reasons. Many of these individuals have higher purchasing power than the city’s average and move for various reasons beyond the Mediterranean climate: quality of life, cost of living, services, proximity to major European capitals, diverse nearby landscapes, and employment opportunities in sectors like technology, health industries, or automotive. Barcelona is a key European hub in these fields, which is why there is substantial non-economic immigration.

A century ago, Barcelona's population was half of what it is today, with a current average growth rate of 2-3% annually.

### Tourism

Moreover, as I mentioned, Barcelona receives over 18 million visitors annually, including tourists, business travellers, and event attendees. The city offers 450 hotels with 77,000 beds, 300 basic hotels ("hostAls") with 6,000 beds, 10,000 tourist apartments with 60,000 beds, and 130 youth hostels with 11,000 beds. Additionally, the metropolitan area provides more than 67,000 hotel beds, 5,000 beds in basic hotels and hostels, 73,000 beds in tourist apartments, 4,000 beds in youth hostels, 6,000 beds in guesthouses, and 44,000 camping plots.

Tourism, however, is not the city's main economic driver, contributing only about 15% to its GDP.

All these tourists share the city's services, transportation, and entertainment with residents. These resources were designed for a smaller volume of users than currently exist, as the tourist boom has far outpaced the growth of these services, which, as we will see, cannot expand much further

### Issues

Space: Barcelona’s 101 km² metropolitan area cannot expand due to physical and geographical constraints, leading to high population density. This means crowded shared spaces like transportation, markets, restaurants, shopping centres, and schools. Tourists often wonder why Barcelona’s 9,000+ restaurants and bars are small and always full—the answer is high commercial real estate prices, with Portal de l'Àngel being one of Spain's most expensive streets.

Speculation: Barcelona's fame attracts not just tourists and immigrants but also speculators and global investment funds that buy and hold properties to drive up prices. They target wealthy foreigners, and large companies, or create short-term tourist apartments. For instance, a 50 m² apartment in Gràcia can rent for €1,500/month long-term but yield €3,000-€4,000 as a tourist rental. One-third of tourist apartments are owned by big companies, with the largest holding 150+ apartments each. This drives up rental prices, which increased by 26% from 2022 to 2023, making Barcelona Spain's most expensive city to rent.

-part 2 of 3-

Wages: Barcelona's high living costs make it one of the most expensive European cities relative to average salaries. Comparing average salaries between cities without considering living costs is misleading. A key indicator is the percentage of income spent on housing and food. In Catalonia, 33% spend over 50% of their income on housing, 36% spend 25-50%, and 24% spend less than 25%. In Barcelona, young people spend up to 85% of their income on housing. For perspective, the average salary in Barcelona (2022) is €34,000/year, and the average rent is €1,136/month (€13,650/year or €20/m²). These are averages, as the average salary in the Sarrià St-Gervasi district is €55,000, while in Nou Barris it's €25,000/year. Correspondingly, the average rent in Sarrià St-Gervasi is €25/m², and in Nou Barris, it's €15/m². Comparatively, the average salary vs. rent costs in other cities: Vienna €52,000/year vs. €9/m², Paris €54,100/year vs. €46/m², Milan €42,500/year vs. €22/m², Madrid €39,500/year vs. €14/m², Berlin €56,000/year vs. €15/m², Dublin €38,600/year vs. €27/m², and Lisbon €33,500/year vs. €21/m². Ratios show Barcelona, along with Dublin and Lisbon, as one of the most expensive cities for rent compared to salaries. However, this should be taken with a pinch of salt because many different, hard-to-compare factors shape the reality of each city.

Public Housing: Limited public housing compared to other European cities, with slow growth and inadequate supply. In the 80s, Spain built over 100,000 public housing units annually, but now only 5,000-6,000 are built each year. Increasing public housing supply is a recurring unmet demand due to budget constraints, lack of public land -especially in Catalonia and close to the coast-, and lengthy bureaucratic processes. Barcelona lags behind cities where renting is the norm, like Vienna, where 62% of residents live in social housing. From 2015 to 2023, Barcelona increased its social housing from 7,500 to 11,500 units, still leading in Spain but inadequate due to land scarcity.

Gentrification: Economic and cultural displacement as wealthier, often foreign, residents move in, changing neighbourhoods. Gentrification is both economic and cultural. Wealthier new residents drive up prices for rent, restaurants, and shops, often changing neighbourhood dynamics. Long-time residents feel their neighbourhood's essence is lost. Resistance to change is natural, and there's nostalgia for the past. The adaptability of foreign residents to local culture, or their tendency to form exclusive enclaves (ghettification), exacerbates this issue.

Overcrowding: Increasing numbers of residents and tourists strain existing services and amenities, leading to congestion and reduced quality of life. Barcelona's limited physical space means growing numbers of residents and visitors share the same services, transport, restaurants, cinemas, and shops. Previously rare, waiting lines at restaurants are now common; navigating through markets and enjoying monuments peacefully is harder. Barcelonans generally welcome immigrants and tourists, having been a hospitable city for over 2,000 years. However, overcrowding and gentrification cause resentment among those most affected.

Given these challenges, Barcelona's residents increasingly demand measures to reduce pressure and balance quality of life with tourism. Limiting tourist accommodations and regulating cruise ship arrivals are among the strategies being considered by local governments, similar to actions in Paris, Amsterdam, and Venice.

-part 3 of 3-

PS: I didn't cite sources to keep this short, but those of you who read me regularly know that I always have reputable sources to back my posts. :))

Mr E and Enric,

Thank you for you insights. This is a complex issue facing Barcelona and many, many communities around the world.

I'm locking this thread since it's veering off the topic of travel, but thanks all for taking part in the discussion.