Plans to Restrict Short-Term Rentals
The Barcelona City Council plans to terminate the operation of more than 10,000 apartments rented to tourists. According to the city authorities, this move should lead to a nearly 13 percent drop in rental prices. However, experts believe such measures could result in the loss of up to 16,000 jobs linked to the tourism sector, while having little noticeable effect on long-term rental prices.
Impact on the Labor Market and Economy
A study by the Institute of Economics at the University of Barcelona suggests a possible decrease in property sales prices by around 6 percent and a slight decline in the city’s gross domestic product—about 36 million euros per year. The main impact, however, will be on employment: forecasts indicate a reduction of 4,000 to 16,000 jobs related to tourist apartment services, the hotel industry, the restaurant sector, and retail trade. In the short term, negative consequences for the labor market could appear sooner than any positive effects for the economy.
Doubts about the Effectiveness of the Measures
Experts point out that the structural shortage of housing supply in Barcelona persists due to restrictions on new construction, lengthy administrative procedures, and high costs of developing new properties. This makes a mass transition of former tourist apartments to the long-term rental market unlikely. In addition, many owners prefer not to rent out their properties because of regulatory challenges and concerns about legal risks.
Demand pressure and potential consequences
Demand for housing in Barcelona remains high due to the influx of students, professionals, migrants, and foreign investors. As a result, even with a decrease in the number of tourist apartments, rental prices may not drop. At the same time, a large-scale shutdown of short-term rental properties could negatively affect real estate investment and economic activity in the city’s tourist districts. This could slow the development of the rental market and reduce the attractiveness of certain neighborhoods for business.
