Malaga justifies the hotel moratorium on the grounds of ‘unfair competition’ between tourism and the housing market

The municipal urban planning department has published on its website the reports that have underpinned this drastic decision to put a stop to the arrival of new tourist accommodation in Malaga. These documents set out arguments that are particularly striking because they detail what is considered an unsustainable situation in which tourism pressure is having a major impact on the property market and the resulting surge in prices.

‘The possibility of introducing short-term lettings in an entire property constitutes unfair competition for those who buy or rent a property to establish their permanent residence - in short, their home. The current trend in the property market, focused primarily on tourism as a whole, has increased competition for housing, resulting in a reduced availability of long-term rentals and properties on the market. Furthermore, the gentrification of neighbourhoods has driven up the cost of living, driving out people who cannot afford the increases in rental or purchase prices,” according to one of the analyses carried out by the planning department, which said that this measure benefits lower-income residents.

It is equally striking that, within that same text, the city council acknowledged that, like other regions, Malaga is in the midst of a "housing emergency", and therefore considered it “essential to ensure the greatest possible number of properties suitable for residential use, while striving to strike a balance: recognising tourism as one of the city’s main economic drivers, but safeguarding the necessary coexistence between accommodation and homes used as a primary residence”.

“Setting limits on the density of accommodation use to balance tourism with the availability of residential housing is a measure of particular importance that would have a positive impact on the population’s well-being, preventing the negative effects that would result if further changes of use and the increased development of accommodation facilities to provide tourist services were permitted,” said the technical experts who drafted the proposal to amend the PGOU regulations.

In their view, the three-year moratorium on tourist accommodation, intended to allow for the study of new regulatory measures aimed at striking a balance with the housing market, “may help to stabilise rental prices and make more homes available to residents, promoting residential occupancy and preventing the forced displacement of residents to outlying areas”. “This, in turn, strengthens the balanced development of urban design and prevents the creation of areas exclusively for tourists,” they said.

“The proposed amendment aims to regulate land use in the areas most affected by tourism in order to improve access to housing, reduce rental prices and restore neighbourly relations,” the urban planning department said in a report. This report also notes how the unchecked proliferation of hotel and holiday apartment projects has exceeded all forecasts, particularly since the moratorium on holiday rental flats came into force a year ago.

The case of apartment complexes has been particularly striking. According to the data set out in this report, the number of applications for tourist apartments approved by the urban planning licensing department has risen from five in 2021, to 33 in 2022, 35 in 2023, 75 in 2024 and 68 in 2025. This trend highlights the spread of this phenomenon not only across the city centre but also across a significant number of neighbourhoods.

“The intensive development of tourism in neighbourhoods is leading to the weakening of the community fabric, conflicts between residents and changes to local businesses,” the document declares. It also notes that the number of tourist apartment establishments in operation has risen by 61 per cent over the last four years, from 206 in 2022 to 333 in February this year.

To support this measure, the city council has also analysed the density of tourist rental flats, apartments and hotels of all categories, concluding that the historic centre is under the greatest pressure. However, high levels have also been detected in the areas around La Merced, Soho, La Goleta, the La Victoria neighbourhood, La Malagueta and La Trinidad.

The local government team believes that this moratorium, which has just come into force, may lead to a reduction in rental prices and will help to "maintain a stable community of residents who can remain in their neighbourhoods of origin". However, as SUR previously reported, the announcement of this temporary suspension at the end of May has triggered a "pull effect", which has resulted in a flood of licence applications for more holiday flats and hotels received by the planning department up until 24 July, meaning it is highly likely that further projects will continue to be authorised in the coming months.