MADRID (Reuters) – Malaga will ban new short-term tourism rentals in 43 neighbourhoods of the city, the latest step taken by Spanish authorities to address residents’ concerns that they are being priced out of the property market by the booming tourism business.

The city in southern Spain joins other cities in cracking down on short-term rentals, including Barcelona, which plans to scrap licences for tourist rentals by 2028.

Residents protesting against high rents and a lack of long-term supply blame it on the proliferation of short-term renting on platforms such as Airbnb and booking.com and an a influx of foreigners choosing Malaga as a base for remote work.

Over the past decade, Spain has experienced a rise in demand for rental homes from migrants and low-income families, according to recent figures from the Bank of Spain. Landlords, however, often prefer renting to tourists because of better returns.

Malaga has 14,000 hotel beds compared to 40,000 beds in holiday rentals, the city’s mayor Francisco De la Torre told a business event in Madrid on Oct. 18.

The ban, announced by Malaga city council, will target neighbourhoods where more than 8% of all homes are let out on a short-term basis, it said in a statement.

In Malaga’s centre, short-term holiday rentals account for 65% of total tourist accommodation there, according to a study conducted by local authorities.

Those districts have higher rents and fewer residents, the city council said, adding that it will review the restrictions each year.

De la Torre also sent a letter to Tourism Minister Jordi Hereu asking for permission to impose a tax on overnight stays in holiday homes, which would be used to subsidise social rents. Tourists staying in hotels would be exempted from the tax, which would require a reform of national law to be implemented.

 

(Reporting by Corina Pons; editing by Charlie Devereux and Tomasz Janowski)