Local politicians in Palma de Majorca are moving ahead with plans to ban new holiday rental properties, including houses and villas, in a bid to tackle the housing crisis and overtourism. The measure, which extends an existing prohibition on new licensed apartment holiday lets, aims to boost housing availability for local residents who have been priced out of their communities.
Councillor Óscar Fidalgo described the move as proportionate and fair, stating it should have been implemented sooner to protect residents from spiking property prices. He criticised the expansion of tourist accommodation, which he said reduces residential supply and makes it harder for locals to access housing. The ban also addresses urban sustainability and neighbourhood coexistence, according to a town hall technical report.
Majorca has been struggling with housing for years, with rents in Palma increasing by 40% since 2013, according to campaign group Affordable Majorca. In April, more than 8,000 illegal Airbnb listings were removed from the island, totalling over 40,000 illegal tourist beds, as part of a coordinated effort with Spanish authorities. Fines for unlicensed holiday lets can reach €40,000 (£34,700), and inspectors have been employed to enforce compliance.
The crackdown comes as data from the National Statistics Institute shows the number of homes listed for holiday rentals in Spain dropped 6% in May compared to the previous summer, following tightened regulations. Nearly a third of tourists visiting Spain opt for short-term rentals. The UK is the second-largest source of international visitors to Majorca, with between 2.3 and 3.6 million British tourists each year.
In a related move, the Balearic island of Formentera has banned nearly 700 loungers and 339 parasols from its beaches, effective until 2029, in a separate effort to manage tourism impact.
