'Cities Turned Into Theme Parks': Why Airbnb Is Facing Trouble In Spain

With its enviable climate, cuisine, and architecture, Spain attracted 98 million visitors in 2024, making it the world's second-most-visited country after France. But that popularity comes with an unenviable side effect.

A surge in homes being listed on platforms like Airbnb means Spain's main urban centres, such as Madrid, Barcelona, and Valencia, are now in the grip of a housing rental crisis that has become Spaniards' primary concern in recent months, according to the Spanish Centre for Sociological Research. Now that anxiety has triggered an official backlash.

Earlier this month, Spain's Ministry of Social Rights, Consumer Affairs, and the 2030 Agenda demanded the removal of nearly 66,000 property rental listings on Airbnb, stating that they contravene tourist accommodation regulations. While Airbnb is appealing the move, it can't come soon enough for some in Spain who say the lack of affordable living accommodation has blighted their lives.

"Not being able to afford the purchase or even just the rent of a decent apartment for oneself is devastating for the dignity of working people," Madrid resident Enrico Congiu said. The 40-year-old works as a family doctor and shares an apartment with two other people of the same age, close to the capital's downtown area.

 Cities turned into theme parks.

Barcelona-based Raquel Perez is another young professional who says she feels trapped by a housing shortage she says can only be alleviated by restrictions on holiday lets. "Currently, it is almost impossible to rent an apartment in Barcelona". "And we, in Barcelona, find ourselves having to share an apartment at the age of 40 or having to move to neighbouring cities."

She added: "I am in favour of eliminating the licenses for tourist apartments and converting them into long-term contracts. I would bring this measure forward to 2026." The price per square meter of house rentals has risen by 85% nationwide in Spain over the last decade, according to data from the real estate website idealista, with tourism and seasonal rentals viewed as key drivers of inflation.

There are 400,000 tourist use housing units in Spain, as per the latest data from the Spanish Statistical Office. The Bank of Spain estimates the country's housing deficit to be between 400,000 and 450,000 dwellings, figures that appear to have spurred the government into action against the rentals it deems are in breach of regulations.

"Behind each of the 65,000 property listings, there used to be homes for families, workers, students who today are expelled form their neighbourhoods and see how their cities are tuend into theme parks for the excessive profit of a few investment funds and big companies," Pablo Bustinduy Spain's Minister for social rights consumer affairs and 2030 agenda said on Sunday.

Most of the targeted listings violated existing rules by not providing a license number, providing an incorrect one, or failing to indicate the legal nature of the owner, as per the ministry.

 Indiscriminate methodology

A request that Madrid's High Court has backed has ordered the rental platform Airbnb to immediately withdraw 5,800 property rentals listed in regions such as Andalucia, Madrid, Catalonia, Valencia, the Balearic Islands, and the Basque Country, identified by the ministry.

Asked about the move, Airbnb said that it will continue to appeal the Allahabad exceptions affecting this case. It also accused the ministry of "using an indiscriminate methodology" to single out rental properties that Airbnb says do not need a license.

Airbnb pointed out that it is already working with the governments of the Canary Islands, Murcia and Ibiza to pursue illegal listings. The national government isn't the only Spanish authority tackling the issue. The Barcelona City Council announced in June 2024 that it will not renew housing licenses for tourist apartments after 2028. That means that more than 10,000 tourist apartments will have to be made available for locals to rent or purchase.

The move has upset some property owners, with the Association of Tourist Apartments of Barcelona demanding more than $4.4 million in compensation for approximately 7,200 apartments affected by this measure. And not everyone is convinced it will tip the balance in favour of those struggling to find long-term accommodation.

"More affordable housing and better regulation would be needed, "Xavier Sole, a Barcelona resident, told CNN.

Probably for the Best

Some tourists, meanwhile, say they agree with a clampdown on Airbnb-style rentals even if they find them a preferable option. Lara Sorbili, who recently visited Madrid from Buenos Aires, agreed with any efforts ot help reduce rental prices for locals, but still chooses Airbnb where possible. "I find it to be more convenient as I can have a kitchen, refrigerator, or it's much more comfortable," Sorbili said. "It also reduces the cost for a family trip if I travel with my children."

Deborah Murphy, who flew from Ireland to spend time in the Spanish capital, added that new measures were "probably for the best."

"There are so many hotels already available that you take housing away from people who could live there instead of tourists who come for a few days and add nothing to the economy."

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