The COVID-19 pandemic ushered in major changes to the ways we live, work and holiday across the world. In Barcelona, those changes were felt particularly keenly in the housing and short-term rental industries.
Barcelona has earned its place on many people’s bucket lists (and on those mugs, bags and tees covered in iconic city names, alongside Tokyo, Paris and New York).
Pre-pandemic, the colourful, coastal city was home to 1.6 million people, and welcomed millions of digital nomads and tourists every year. But the lifting of coronavirus restrictions brought in an unprecedented number of non-residents.
In 2023, Barcelona welcomed nearly 10 million tourists, marking a 14.8% increase compared to the previous year.
By 2024, Barcelona’s 1.7 million residents – and the real estate scene – were feeling the pinch from overtourism. And in July, more than 2,800 people participated in protests around the city. Their demand was simple: it was time to start limiting tourism.
Now, local administration has responded with a proposed ban on short-term rentals in Barcelona by 2028. However, it isn’t totally clear whether this measure will address the issues at hand.
Banning short-term rentals (STRs) could only open 1% of all affordable housing – but it might also create new problems for the city.
The implications of the Barcelona short-term rental ban are significant – not only for local property owners, but for those managing STRs in other cities globally.
In San Diego, where short-term rentals have also been under tight scrutiny in recent years, property managers have had to adapt to the city’s new short-term rental regulations rules to stay compliant. Denver Airbnb rules reflect a similar trend.
Barcelona Airbnb ban: the timeline
The decision to ban short-term rentals in Barcelona didn’t happen overnight. Let’s take a look at the key moments that led to this significant policy shift:
| 2019 Record-breaking tourism in Barcelona 32 million visitors flock to the city in a record year for tourism. Major attractions like La Sagrada Familia and Park Güell experience overcrowding, and the availability of housing is negatively affected by the rise of STRs |
| 2020 COVID-19 halts tourism Many short-term rental properties convert to long-term leases, temporarily relieving some of the strain on Barcelona’s housing market |
| 2022 Tourism’s volume to value shift in the city Barcelona reports fewer tourists, but with higher average spending than in previous years |
| 2023 Digital Nomad Visa introduced in Spain, and overtourism peaks A new wave of remote workers are attracted to Spain’s major cities. Barcelona welcomes 10 million tourists, 14.8% more than in 2022 |
| 2024 Rent prices rise in Barcelona The high proportion of short-term rentals continues to affect the housing market, pushing locals out – particularly in central neighbourhoods. Protests begin, with thousands of locals demanding solutions to overtourism. In response, Barcelona mayor Jaume Collboni announces plans to phase out existing short-term rentals by November 2028 |
| 2028 Planned STR ban in Barcelona By November 2028, Barcelona will enforce a complete ban on short-term rentals in the city’s most tourist-heavy areas. The ban will make it illegal for platforms like Airbnb to operate in these regions, in an effort to reduce overcrowding and free up housing for long-term residents |
Tourism impacts daily life
Overtourism affects all aspects of life – in Barcelona, and around the world. Barcelona’s residents have felt the impacts in a number of major ways:
Loss of affordable housing
Tourism and the proliferation of short-term rentals have driven rent prices higher – and above what many residents can afford.
The availability of long-term rentals has dwindled as more properties are converted into tourist flats. At the same time, the gap between tourists’ spending power and local people’s incomes has also made housing less affordable for residents, with many people being forced to relocate to less desirable areas.
Overcrowding in public spaces
Barcelona’s famous landmarks are frequently overwhelmed by tourists, making it difficult for residents to enjoy public spaces and even access basic services in the city center.
Barcelona local and travel expert, Sarah Dandashy, speaks on life in the city center: “It’s just full of… tourists and there are almost no local spots. If you want to go out to dinner it’s impossible to get a reservation.”
Barcelona’s port handled close to 1.7 million ferry passengers in 2023, a nearly 9% increase from the previous year and the highest figure since 2010.
As the BBC reports, local officials in Barcelona have even resorted to taking a bus route down from Google Maps, to discourage tourists from using it (and taking seats away from locals).
Social impacts
An increase in badly behaved tourists has led to noise complaints and other social disturbances. Barcelona has been a long-time favorite destination for stag parties – and for some tourists, it’s a place to commit all kinds of debauchery that won’t follow them back home. However, when tourists behave badly, residents are left to clean up the mess.
Water use
Tourism in Barcelona has had a significant impact on local resources and infrastructure, particularly water usage. Tourists in hotels use around 163 liters of water per day, compared to local residents who consume only 99 liters.
Vicenç Acuña, director of the Catalan Institute for Water Research, explains that although residents in Barcelona are mindful of their water use, tourists are less so: “There are many millions of people visiting [Barcelona] every year, and in terms of waste and water use, they behave like people here did 30 years ago.”
Will the ban create new problems?
While the Barcelona Airbnb ban aims to address overtourism and housing market issues, it also raises its fair share of concerns.
Even with a ban on STRs, “demand [for holiday accommodation] isn’t instantly going to go away,” Leo Walton, Superhog Co-Founder explains, adding that increased demand and reduced supply may mean that “the prices of hotels are going to go up exponentially.”
The ban on short-term rentals may also lead to an increase in illegal rentals for tourists and a step away from platforms like Airbnb to less regulated platforms.
Airbnb offers customers the unique opportunity to ‘live like a local’ – in a home rather than a hotel. As Walton says: “Users are still going to want that kind of experience… [but] they’re going to do it through other channels.” But without a legal platform, new risks are introduced for both property managers and vacationers: “[STRs are] going to be a lot less safe. You’re going to be renting probably to people who you don’t know, who don’t have reviews.” He adds: “[without] third-party validation of that property” both parties involved won’t really know “who’s coming to your house, or who’s hosting you.”
One of the major benefits of Airbnb is that it provides options for cover and insurance that protect both renter and property manager – and with additional comprehensive protection from Superhog, disputes and damage can be better managed. A ban will mean these services and the protection they offer will no longer be available to property managers and guests.
Barcelona’s ban on vacation rentals will undoubtedly affect the way STR managers operate, as well as the profitability of their investments. Recently imposed restrictions on holiday lets in the UK have meant higher compliance costs, more time spent on administrative work, and lower profits for many landlords – changes which will affect the overall viability of STR investments now and in the future.
Barcelona needs the right kind of tourists
Taking a look at crowding, water use, and the many impacts of visitors in Barcelona, another question remains: are STRs really the problem, or is it overtourism?
“There are areas of the city that, quite frankly, I just try not to go,” Sarah Dandashy says, on the topic of overcrowding. She continues: “But that’s more of an overtourism issue than a short-term rental issue, and I don’t think the ban is going to fix that… there are still going to be hotels in that area – and people will continue flooding into those [areas] regardless of where they’re staying. It’s a much wider question for Barcelona to solve: How do you continue to bring in tourists but attract the right kind of tourism?”
On STRs, Leo Walton adds: “They represent less than 1% of the total housing supply in Barcelona.” Therefore, the idea that an STR ban will fix the housing crisis is based on “flawed logic.” He continues: “to think that’s going to exponentially change rent prices is just wrong. You’re still going to have an influx of people who have much higher wages than the average person living and working in Barcelona, so that’s still going to [contribute to] higher rents. Ultimately, that’s what’s keeping people from housing.”
How can property managers prepare for the ban?
For STR managers, the impending Barcelona short-term rental ban will have a whole series of consequences. However, understanding how property managers have adapted to regulations imposed in other parts of the world can provide guidance on how to address these.
If the STR ban in Barcelona is going to affect your property, you may want to consider some of the following strategies:
Transition to a long-term rental
While short-term rentals are set to be banned, long-term rentals (LTR) will still be permitted in Barcelona under the new regulations. Switching an existing STR into an LTR can provide a steady income stream that adheres to the new laws.
Consider other cities
Investing in other regions that are more welcoming to short-term rentals can help to mitigate risks and diversify income streams.
Alternative business models
Converting properties into co-living spaces or serviced apartments that cater to longer stays can be viable in cities banning Airbnb and short-term accommodation. By offering more flexibility and amenities than hotels, they can appeal to digital nomads and business travelers.
What’s next?
As Barcelona moves towards enforcing its short-term rental ban – what’s next for STR managers and renters?
Current Barcelona mayor Jaume Collboni will complete his term before the full ban takes effect in 2028. Therefore, it will be up to future administrations to deal with any potential consequences of the change. Other cities banning Airbnb – like Dublin – have even revised regulations after they were imposed, due to the negative impact on tourism and the local economy. So even if Barcelona’s ban is realized – it might not be set in stone.
The Barcelona Airbnb ban has arisen in response to real challenges affecting the daily lives of residents in the city. The housing market crisis and overtourism need to be addressed – but, at the same time, tourism will always be a vital part of Barcelona’s (and Spain’s) economy.
In the coming years, the full impact of the proposed ban on STR managers, locals and visitors remains to be seen. As in other cities, the ban might not be set in stone – and on whether it will help to address the city’s problems, the jury’s still out.
