As Fuerteventura continues to attract investors, a new regulatory framework for holiday rentals aims to harmonize tourism and local housing needs.
The Canary Islands Parliament has recently approved groundbreaking legislation that governs holiday rentals throughout the archipelago. This measure, known as the Law for the Sustainable Management of Tourist Housing, was adopted on November 12 and replaces a 2015 decree that lacked comprehensive regulations for property owners and local authorities. The law seeks to balance the housing demands of the islands’ 2.2 million residents with the rapid growth of the short-term rental market, which has significantly influenced local communities.
Jéssica de León, the Minister of Tourism and Employment, emphasized that this reform marks a “new stage of planning and urban management.” It aims to reconcile “the right to housing with an economic activity that is here to stay—but must develop with order and balance.”
Key provisions of the new legislation include a five-year moratorium on establishing new holiday rentals. During this period, each municipality must create its urban plan to outline the locations and quantity of rental properties permitted. After implementation, only 10% of the housing stock in each area can be designated for tourism, leaving 90% for residential use.
Moreover, the law prohibits the use of social housing for tourist rental purposes and bans the practice of converting entire buildings into “pseudo-hotels” by large investors. It also stipulates that newly constructed homes cannot be rented to tourists until ten years after completion, measures aimed at protecting local residents from market speculation and the risks of gentrification.
Currently, over 55% of holiday rental properties are owned by foreign investors or companies, compared to 44.6% that are owned locally. The government asserts this legislation “does not limit but rather organizes” the rental sector to ensure sustainability and community cohabitation. Miguel Ángel Rodríguez, Director General of Tourism Planning, remarked that the law aims to foster a livable and balanced environment that prevents the “touristification” phenomenon, which can displace residents and undermine small businesses.
The new regulations will take effect the day after their publication in the Official Gazette of the Canary Islands (BOC).
Image credit: www.guidetocanaryislands.com
Source: www.guidetocanaryislands.com.
Curated by Fuerteventura Times Real Estate Desk.
