The LPA – Leading Property Agents of Spain publishes a key report on the impact of recent legislative changes affecting tourist rentals. The new requirement for homeowners’ association approval is already affecting property sales and values in developments such as Puerto Banús and the Golden Mile, where the vast majority of properties are second homes.
The entry into force of the reform to the Horizontal Property Law on 3 April has marked a turning point in the real estate market in Marbella and other tourist areas along the Costa del Sol. From now on, any new application for a holiday rental licence must be approved by a three-fifths majority of the homeowners’ association—a measure that is already having a noticeable effect on property transactions and legal certainty for investors.
In response to this new landscape, The LPA – Leading Property Agents of Spain has released a report analysing the reform’s impact on the sector. The document includes data, real-world case studies, and practical recommendations for property owners and investors. It also warns of a potential decline in property values in key locations such as Puerto Banús, the Golden Mile, and San Pedro Playa.
“In several communities within these tourist zones where the ban was implemented more than a year ago, demand has dropped and property values have declined, forcing sellers to apply discounts to complete sales,” the report states.
Far from resolving neighbourhood disputes, the prohibition has triggered a series of unwanted side effects—most notably, a surge in illegal rentals that are not professionally managed.tlpa
The report further details the transformation in the buyer profile over the past decade. Today, more than 60% of second-home buyers in these areas purchase with the intention of letting the property when not in use, thus treating their acquisition as an investment. This trend, alongside the widespread use of digital platforms and professional property management services, has completely transformed the holiday home model in recent years.
The LPA argues that regulation and professionalisation of the sector – not prohibition – is the most effective way to ensure harmonious coexistence within communities, safeguard property values, and prevent the growth of the black market.
The full report is now available for free download in PDF format. The LPA encourages all property owners, investors and industry professionals to consult it and share it with their networks.
