The Leading Property Agents of Spain (LPA) have warned about the risk of a drop in property values and the cancellation of sales transactions in areas such as Puerto Banús, the Golden Mile, or San Pedro Playa in Marbella. According to the association, the reason is the recent reform of the Horizontal Property Law (Ley de Propiedad Horizontal) promoted by the central government, which makes it more difficult to use properties for tourist rentals. In view of this situation, the LPA proposes professional management of this type of rental and adequate regulation to govern it.
The warning is included in a report prepared by the association, which analyzes the impact of the reform that came into force on April 3, and reviews the evolution of the profile of second-home buyers in the area over the past ten years.
The legal modification establishes that any new application for a vacation rental license before the Tourism Registry must have the approval of at least three-fifths of the homeowners’ association. According to the LPA, this requirement is already causing negative consequences in both the sales market and the legal security of investors.
In its report, the association stresses that, although the regulation has only been in force for two months, some of its members have already witnessed cancellations of purchase transactions due to uncertainty and the difficulties buyers face in renting out their property when not in use.
Impact of the reform
Among the examples included in the document, one case is highlighted of a homeowners’ association in a tourist area of Marbella which, in 2024, banned tourist rentals. The measure was taken due to the nuisances caused by properties managed directly by their owners. However, since the law is not retroactive, homes with prior licenses continue operating.
The LPA argues that such restrictions are already significantly reducing demand for property purchases and that real estate prices have begun to fall, with considerable discounts being applied in short- and medium-term sales. The association also warns that these prohibitions may encourage uncontrolled illegal rentals.
For all these reasons, the LPA insists that the best way to ensure coexistence and preserve property values is to establish clear regulation and promote professional management of tourist rentals, instead of banning them.
The association also criticizes the analysis carried out by the central government regarding the causes of Spain’s housing crisis, claiming that the measures adopted will not solve the problem nor promote long-term rentals. Among the factors that, in its view, hinder access to housing, it mentions demographic growth, the lack of public housing, the imbalance between supply and demand, the rise in divorces, and the Housing Law of 2023, which, they argue, has increased legal uncertainty for property owners.
Buyer profile
The study also describes how the profile of second-home buyers has changed over the last decade. In areas of Marbella with a strong presence of vacation homes, 60% of buyers consider purchasing only if they can rent out the property when not in use, thus combining investment with personal enjoyment.
This phenomenon, uncommon in the 1980s and 1990s, is partly explained by the fact that many owners—mainly foreigners—do not use their properties in summer, coupled with the increase in demand for tourist accommodation throughout the year.
Another factor is that, with rising housing prices, many buyers finance their purchase relying on rental income to cover expenses such as the mortgage, property tax (IBI), homeowners’ fees, or utilities.
