Palma Freezes New Tourist Rentals: Balancing Tourism and Local Living
Palma de Mallorca’s city council has enacted a groundbreaking ban on all new short-term tourist rental licenses, effective immediately. The move aims to alleviate housing shortages and curb overtourism by halting growth in Airbnb-style accommodations across the entire municipality. Existing legally licensed rentals can continue operating, but no new permits will be issued for apartments, houses, or rural properties.
Palma’s Old Town has seen rising housing pressures due to tourist rentals (Credit: Palma City Council)
Why Palma Took Decisive Action
City planners amended Palma’s General Urban Plan following resident protests and municipal data showing tourism rentals consumed 11% of housing stock in central districts. Mayor Jaime Martínez stated: “This isn’t anti-tourism – it’s about ensuring locals aren’t priced out of their own neighborhoods.” The policy:
- Designates all 24 city districts as “saturated” for tourist apartments
- Caps current ETV licenses at 3,172 existing properties
- Introduces €40,000 fines for illegal rentals
Regional Context: Spain’s Tourism Reckoning
Palma joins Barcelona, Valencia, and San Sebastián in restricting tourist rentals. Balearic Islands President Marga Prohens noted: “We welcome visitors but must prioritize residents’ rights.” Key regional parallels include:
| City | Policy | Effect on Rentals |
|---|---|---|
| Barcelona | No new licenses since 2014 | 31% reduction in legal offers |
| Valencia | Ban in historic center | 12% more long-term leases |
Practical Impacts for Mallorca’s Expat Community
Property Investors: Closed Doors
Prospective buyers can no longer purchase properties for tourist rental conversion. Existing licensed properties have surged 22% in value since the announcement, according to Tinsa valuation data. Licenses cannot be transferred between owners or properties.
Long-Term Renters: Cautious Optimism
While 650 rental properties returned to the long-term market in Q1 2024 (per INE), average rents remain at €18/m² monthly – 14% below 2023 peaks but still 58% higher than 2019. Property expert Clara Marqués warns: “Landlords may convert to luxury long-leases rather than lower prices.”
Community Dynamics
The ban responds to complaints about “ghost neighborhoods” where 70% of homes stood empty off-season. Santa Catalina resident Tom Hughes notes: “We’ve regained bakeries and pharmacies catering to locals rather than souvenir shops.”
Compliance Essentials
Authorities are auditing all rental platforms, with fines up to €300,000 for violations. Expats with legal rentals must:
- Display license numbers in listings
- Limit occupancy to licensed capacity
- Renew registrations annually
As Palma implements this tourism reset, expats should consult official resources like the Balearic Islands Housing Department for updates. The long-term balance between tourism revenue and resident wellbeing remains a delicate equation.
Images Credit: euroweeklynews.com