TBM Staff - Mumbai
The Valencia region in Spain is set to impose fines of up to EUR 600,000 on unlicensed and black-market short-term rentals, including Airbnb-style apartments, as part of efforts to curb overtourism. This crackdown aims to alleviate pressure on local public facilities and control rising rental prices in popular European tourist destinations. According to Airbtics, an Airbnb analytics company, Valencia’s short-term rental market has a median occupancy rate of 79%, with properties being booked for an average of 288 nights annually. In 2023, hosts typically earned about EUR 27,000 per year, with an average daily rate of EUR 93.
As of April 15th, there were 9,128 active Airbnb listings in Valencia, with high demand in neighborhoods such as Ciudad de las Artes y las Ciencias, La Lonja de la Seda, and Valencia Cathedral. The short-term rental market, which includes more than just Airbnb properties, plays a significant role in supporting the local economy. However, the rise of black-market rentals, often operated by local landlords and foreign expatriates, has raised safety and regulatory concerns. Valencia tourism official Nuria Montes emphasised the need to regulate these rentals, highlighting issues such as tax evasion, lack of safety compliance, and unreported guest identities.
Montes estimates that there could be over 50,000 unregulated short-term rental apartments in the Valencia region. To legally operate a short-term rental, owners must obtain a Valencian Tourism Registry tourist license, which requires providing property details, intended use, compliance with quality and safety standards, and owner information. Necessary documents include proof of ownership, property floor plans, energy efficiency certificates, and proof of insurance.
Valencia’s new regulations follow similar measures taken by other Southern European cities like Lisbon, Barcelona, Venice, and Split, which have introduced restrictions to manage tourism. Barcelona plans to phase out approximately 10,000 Airbnb-style apartments by late 2028, while Venice has restricted tourist group sizes and cruise ship access. The boom in Spain’s short-term rental market is attributed to its appealing climate, rich culture, and the cost-of-living crisis, which has driven tourists to seek cheaper, more flexible alternatives to traditional hotels. The proliferation of digital booking platforms has further facilitated the rise of these rentals, often leading to the listing of unlicensed properties at lower prices.
