Following the lead of New York, Amsterdam, and Berlin, the Canary Islands plan to regulate holiday rentals to address the housing shortage faced by many island workers. This regulation also aims to safeguard small property owners who rely on income from tourism. The announcement was made during a recent government briefing, and officials emphasized that the plan would mirror the Balearic Islands, which pioneered Spain’s approach to governing vacation lets. The archipelago intends to craft its own law, with work beginning in 2017 under the supervision of the regional legislature. The objective is to create a stable legal framework that supports both residents and tourism-driven income.
Currently, holiday rentals in the Canary Islands fall under Decree 113/2015, issued on May 22. This decree stemmed from earlier decisions that limited rental activity within tourist zones and the renting of rooms. Beyond these legal provisions, the minister highlighted that the decree’s content was fairly narrow, focusing on the requirements properties in the non-hotel segment must meet. This narrow scope left many planning questions unresolved, especially in relation to urban and regional planning.
Industry observers note that the decree did not accompany a comprehensive plan for tourism development, urban management, or regional coordination. It did not impose quantitative caps on the use of homes originally designed as conventional residences for tourist purposes. Facing these gaps, the Canary Islands Administration received broad political support in calling for a new regulatory framework for holiday accommodations during a plenary session.
Regarding the drafting process, the Ministry of Tourism announced the formation of a working commission. The group includes seven councils, regional and municipal authorities, sector experts, university representatives, and professional associations. Their deliberations on Gran Canaria will cover diverse aspects of tourist rental to shape the forthcoming legal text.
One notable trend in recent years is the sharp rise in holiday homes, with a roughly 10 percent increase since the pandemic. National statistics show about 43,000 homes listed for holiday rental across the Canary Islands in 2022, offering roughly 175,000 beds and accounting for about one-third of the archipelago’s total tourist capacity. This growth has sparked concern among policymakers and residents alike, who worry about balancing housing availability with tourism demand.
Among the autonomous communities, the Canary Islands already host the most tourist apartments outside the Balearic Islands. The distribution of holiday homes varies by area, with La Oliva reporting the highest share at around 30.7 percent, followed by Yaiza at 17 percent, Adeje at 14 percent, Hermigua at 13 percent, and Puntagorda along with San Bartolomé de Tirajana each at 12 percent. These figures underscore the regional challenge of managing holiday rentals while preserving local housing stock and neighborhood character.
During the plenary session, critics argued that a liberalized approach to holiday lettings could harm the housing market. Natalia Santana of Nueva Canarias cautioned that tourism activity may erode neighborhood identity, strain social networks, and displace residents. Paula Jover of Vox added concerns about noise and dirt in city centers, suggesting that these factors should not be allowed to degrade living conditions for long-time residents.
There is also debate about the degree of authority available to municipalities. Local leaders say they need more flexibility to address specific pressures in their jurisdictions. José Manuel Bermúdez, a member of the Canary Islands Coalition, noted that municipalities are often best placed to identify the zones most affected by tight housing markets. Some groups encourage special consideration for the Green Islands—La Palma, La Gomera, and El Hierro—where the tourism model already prioritizes holiday rental over other forms of accommodation. The aim is to find a balanced path that supports local communities while maintaining a thriving tourism sector.