Short-Term Rental Regulation: Are New Rules Affecting the Costa Tropical?

SohaniSharma

Junta Measures and National Housing Reforms Begin to Reshape the Market

New short-term rental regulation measures introduced at both regional and national level are beginning to influence property activity along the Costa Tropical, prompting questions among owners in Motril, Almuñécar and Salobreña about what comes next.

In recent months, the Junta de Andalucía has reinforced oversight of tourist accommodation registrations, while Spain’s broader housing reform debate has placed additional scrutiny on short-term rental platforms operating in high-demand areas. Although the Costa Tropical is not facing the same saturation pressures seen in Málaga or Barcelona, local agents say the regulatory climate is shifting.

Under current Andalusian rules, all tourist rentals must be properly registered in the regional tourism registry and comply with safety, air-conditioning and occupancy standards. Municipalities also retain authority to introduce planning-based controls in areas where residential supply becomes constrained.

A Different Situation From the Costa del Sol

Unlike parts of the Costa del Sol, where entire neighbourhoods have seen high concentrations of holiday lets, the Costa Tropical remains comparatively balanced. However, in popular zones such as Playa Granada in Motril and beachfront districts in Almuñécar, the number of licensed short-term properties has grown steadily since 2022.

According to regional data published by the Junta last year, Granada Province recorded several thousand registered tourist accommodation units, with coastal municipalities accounting for a significant share. Local estate agents estimate that in certain central areas of Almuñécar, short-term rentals represent between 15 and 25 percent of available housing stock, though figures vary by neighbourhood.

The concern among policymakers is not only tourism pressure, but access to long-term rental housing for residents. In Motril, demand for year-round rentals has tightened since late 2024, particularly for family-sized apartments close to schools and services.

Are New Restrictions Coming?

So far, no blanket municipal bans have been announced on the Costa Tropical. However, councils are monitoring the situation closely. Spanish national housing reforms adopted in 2023 strengthened tenant protections and allowed greater municipal flexibility in declaring “stressed housing zones,” though Granada Province has not yet designated any coastal municipality under that category.

Real estate professionals say the regulatory tightening is less about prohibition and more about compliance. Inspections have become more systematic, and owners without proper registration risk fines. Some landlords who previously operated informally are now choosing either to legalise their properties or return them to the long-term market.

There is also discussion at national level about improving data-sharing between platforms and authorities, which could further increase transparency.

Impact on Property Investment

For investors considering property on the Costa Tropical, the evolving short-term rental regulation environment adds another factor to assess. While yields from holiday rentals remain attractive in peak summer months, owners must factor in registration requirements, community approval where applicable, and the possibility of future local restrictions.

At the same time, some analysts argue that clearer rules may stabilise the market. “Regulation can actually increase confidence,” one Almuñécar-based agent noted. “Buyers prefer knowing the framework rather than facing uncertainty.”

The broader picture in Granada Province suggests moderation rather than abrupt change. Tourism remains a key economic driver in Andalusia, and coastal municipalities rely on visitor spending. The challenge lies in balancing that economic benefit with housing accessibility for permanent residents.

For now, the Costa Tropical appears to be in a transitional phase. Regulation is tightening, but not radically. Owners are adapting, councils are watching carefully, and the market is adjusting in measured steps rather than dramatic swings.

The coming year may not bring sweeping restrictions, but it is clear that operating casually in the short-term rental space is becoming less viable. Along this stretch of the Granada coast, the era of informal holiday letting is gradually giving way to a more structured, regulated landscape.

Ahmedabad