The government is preparing a new Housing Law aimed at easing access for citizens by curbing rental price increases in areas where the housing market is under stress. The coalition’s recent norm proposal, supported by ERC and EH-Bildu, drew swift criticism from investment funds focused on real estate and housing ventures. Now the traditional tourism sector is weighing in, signaling reservations about certain aspects of the forthcoming law.
The Spanish Confederation of Hotels and Touristic Accommodation (Cehat) has joined the Housing Law debate, arguing that the reforms should protect the tourism rental business by giving landlords clearer legal footing. They warn that new rules could push landlords to convert homes currently used for long-term rentals into holiday lets, potentially reducing the overall housing supply. Hoteliers insist that landlords deserve greater certainty, and they caution that the regulation may produce unintended effects, especially on the capacity of the real estate market to respond to demand.
Hotel employers contend that the future legislation, which strengthens protections for tenants and caps rent increases, could prompt landlords in stressed zones to stop renting and to pivot toward vacation or short-term stays. The hotel association thus aligns with concerns raised by Exceltur, the lobby representing the thirty largest Spanish tourism companies, including major hotel groups.
Asymmetry and unfair competition
In general, the most stress-tested residential areas are those where demand from tourists is highest, whether in large cities or popular destinations. Recent years have also seen a notable shift toward holiday apartment rentals within the overall rental housing supply.
According to hotel management, current tenant protections, the difficulty of eviction, and rent caps have contributed to a roughly 12 percent decline in traditional rental offerings in major cities over the last year, with even greater drops in some urban areas. They warn that the situation could worsen as the law begins to take effect.
J. Orge Marichal, president of the Hoteliers Association, stresses that landlords need full legal certainty about renting properties. He argues that housing policy should not leave landlords to bear the full burden of risk and suggests that non-payment issues could be resolved more quickly with government guarantees and standard judicial processes. He also emphasizes that housing should not be managed solely by landlords, pointing to the need for balanced rules that protect residents and residents’ interests alongside tourism needs.
Cehat calls on the government to use the new law to establish nationwide rules that foster coexistence between residents and tourists in holiday homes and temporary accommodations. The president of the employers’ association highlights the need for clear provisions so that building use does not interfere with one another, to regulate entrances, and to ensure that detached homes are used appropriately in communities. The aim is to secure harmonious coexistence in residential buildings and to regulate the use of buildings used for tourism accommodations.
Hoteliers request simpler compliance criteria within the Housing Law and alignment with autonomous and local regulations governing tourist rental properties, all while maintaining a level of price liberalization. They warn that future regulation could worsen regulatory asymmetry between regulated accommodations and tourist apartments, given the absence of coherent tourist rental rules in many areas.
Complaints from tourism giants
Exceltur, which brings together the thirty largest tourism companies in Spain—including Meliá, NH, Riu, Iberostar, and Palladium—has pressed the government for months to regulate the proliferation of illegal tourist accommodations. In discussions with the executive, the lobby argues for using the Housing Code as a framework to address non-compliance with regional and municipal building rules and to curb the spread of illegal tourist units in residential buildings. The aim is to prevent uncontrolled expansion of tourist-only accommodations.
Exceltur has warned that the forthcoming legislation, if approved in its current form, could trigger a massive conversion of traditional rental homes into tourism properties due to caps on rent increases. This is especially felt in dense city centers where a sizable share of tourist apartments are listed on platforms such as Airbnb, Vrbo, and Booking.com.
The association has urged the government to employ the Housing Act, or to adopt one or more ad hoc decrees, to establish a dedicated regime for tourist residences and contracts. It has pressed for obligations on online platforms to curb the sale of illegal accommodations and for stronger enforcement powers for homeowners associations to curb this phenomenon. A new national framework is seen as essential to ensure that municipal and regional regulations are effectively applied and that unregulated tourist apartments do not continue to expand unchecked.