‘Cities turned into theme parks': Why Airbnb is facing trouble in Spain

CNN

5 days ago

With its enviable climate, food and architecture, Spain pulled in 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 centers like Madrid, Barcelona and Valencia are now in the grip of a housing rental crisis that has, in recent months, become Spaniards' primary worry, according to the Spanish Center for Sociological Research. Now that anxiety has triggered an official backlash.
Earlier this month, Spain's Social Rights, Consumer Affairs and 2030 Agenda Ministry demanded the removal of nearly 66,000 property rental listings on Airbnb, saying they contravene tourist accommodation regulations.
While Airbnb is appealing the move, it can't come soon enough for some in Spain who say their lives have been blighted by the lack of affordable living accommodation.
'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 told CNN. The 40-year-old works as a family doctor and shares an apartment with two other people the same age close to the capital's downtown.
Barcelona-based Raquel Pérez, 41, 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', she told CNN. 'And we Barcelonans find ourselves having to share an apartment at the age of 40, or having to move to neighboring cities.'
She added: 'I am in favor of eliminating the licenses for tourist apartments and converting them into long-term rental contracts. In fact, I would bring this measure forward to 2026.'
The price per square meter of house rentals has risen 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 inflationary drivers.
There are 400,000 tourist-use housing units in Spain, according to 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 from their neighborhoods and see how their cities are turned 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 a wrong one or not indicating the legal nature of the owner, according to the ministry.
A request that has been backed by Madrid's High Court has ordered rental platform Airbnb to immediately withdraw 5,800 property rental listings identified by the ministry located in regions like Andalucia, Madrid, Catalonia, Valencia, the Balearic Islands and the Basque Country.
Asked about the move, Airbnb told CNN that it will continue to appeal all decisions affecting this case. It also accused the ministry of 'using an indiscriminate methodology' to single out rental properties that Airbnb says do not actually 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. 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 (Asociación de Apartamentos Turísticos de Barcelona) demanding more than $4.4 million as compensation for about 7,200 apartments affected by this measure.
And not everyone is convinced it will tip the balance in favor of those struggling to find long-term accommodation.
'More affordable housing and better regulation would be needed,' Xavier Solé, a Barcelona resident, told CNN.
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, told CNN that she agreed with any efforts to help reduce rental prices for locals, but still chooses Airbnbs where possible.
'I find it to be more convenient as I can have a kitchen, refrigerator… it's much more comfortable,' Sorbili told CNN. '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, then 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.'