Regulation of tourist rentals in Alicante and market impact
Alicante is amid discussions about a new set of regulations for tourist rentals, a move intended to balance coexistence in communities with the needs of visitors and the concerns of residents. The discussion has sparked worries among promoters and local homeowners, who fear any new rules could slow sales or deter international buyers who rely on short-term letting as part of their investment strategy in the Costa Blanca region. In recent weeks, stakeholders have pressed for clarity, hoping to avoid a patchwork of rules that could undermine property values or hinder timely transactions.
During a working session with regional leaders, Jesualdo Ro, secretary of the Alicante Provincial Supporters Association (Provia), emphasized the sector’s anxiety and shared the business community’s perspective with the regional president, Carlos Mazón. The message underscored a desire for regulations that address coexistence without stalling the market for second homes and investment properties. The Ministry of Innovation, Industry, Trade and Tourism has signaled an intent to finalize a regulation on tourist rentals, aiming to reduce informal activity while preserving legitimate operations. The goal is to curb illegal practices without punishing compliant landlords who contribute to local economies.
Provia representatives argue that any new framework should recognize the differences across areas. Urbanization patterns in Orihuela Costa differ from those in the city centers of Valencia or Alicante, and a one-size-fits-all policy risks harming legitimate investment in tourism hotspots. Business leaders stress the need for targeted measures that respect distinct local contexts and avoid painting entire regions as undesirable for investment. In particular, they warn that broad restrictions could deter buyers, especially international investors who see value in well-regulated tourist markets.
In the context of tourism development, the association promotes thoughtful policy that balances housing needs, motorized mobility, and seasonal demand. For many buyers, the market for second homes remains a strong driver of local economic activity, particularly in coastal districts where demand tends to concentrate during peak seasons. The panel noted that any generalized limitation could produce lasting harm to the industry, including a negative image that dissuades potential buyers from abroad. The concern is that misperceptions about regional risk could slow down investment and inflows into the local housing market.
The discussion also touched on broader market dynamics, with recent notarial data showing substantial foreign activity in the province. Foreign buyers accounted for a significant share of new construction purchases in 2022, and last year the international segment continued to perform well relative to the national trend. When considering all housing transactions, foreign buyers contributed a meaningful proportion of market activity, underscoring the relevance of international confidence and predictable regulatory environments for sustained growth.
Beyond rentals, Provia raised a plan to advance the construction of 10,000 Official Protected Residences (VPOs) during the current legislative period. While the proposal was welcomed by many in the business community, there was a call to accelerate construction permitting processes at municipal councils to meet ambitious targets. Streamlining urban planning and permitting is seen as essential to unlocking a robust supply of affordable housing while maintaining regulatory rigor. The dialogue highlighted the perception that some planning procedures can become lengthy and burdensome, potentially delaying projects that meet all regulatory requirements.
Participants also discussed ways to support young people in achieving homeownership. Acknowledging the barrier posed by the need to accumulate substantial savings, the group explored measures intended to improve access to housing for younger generations. The Generalitat has indicated ongoing efforts to address this challenge, seeking pragmatic solutions that expand pathways to ownership without compromising market stability. The overarching aim is to create a healthier, more predictable environment for both residents and investors, ensuring that growth in tourism and housing supply proceeds in harmony with community goals.
In summary, the prevailing view among Provia and allied statutory bodies is the need for a nuanced regulatory framework. The plan should reflect the varied realities of coastal and urban areas, promote legal compliance, and prevent illicit activity without discouraging legitimate investment. The conversation will continue as policymakers seek measures that foster a balanced, competitive market that benefits residents, buyers, and the broader regional economy. The focus remains on creating a stable environment where both tourism and housing supply can flourish while safeguarding neighborhood harmony and sustainable growth.