Valencia Plans to Cap Holiday Homes at 2% Per Neighbourhood in Major Tourism Crackdown

New Rules Limit Tourist Accommodation Across the City

Valencia's city council has approved new regulations that will significantly limit the number of holiday homes and tourist apartments allowed across the city — a move designed to combat what critics call "touristflation" and ease pressure on the housing market for residents.

Under the new rules:

• Holiday homes and apartments cannot surpass 2% of total housing stock in any neighbourhood or district.
• Tourist accommodation — including hotels, apartments and vacation rentals — cannot exceed 8% of registered residents in each area.
• Ground-floor holiday units in residential buildings face a separate 15% cap.

Valencia claims to be Spain's first city to impose such accommodation limits, though similar anti-tourism movements have gathered pace in Barcelona and other Spanish cities in recent years.

'A Residential City, Where Homes Are for the Residents'

Mayor María José Catalá framed the initiative as part of a broader strategic shift for Valencia. She said the city aims to become "a residential city, where homes are for the residents" rather than pursuing mass low-cost tourism.

She emphasised that the regulations mean 98% of new homes will serve residential purposes — a clear signal that the city is prioritising locals over short-term tourism revenue.

The Problem That Won't Go Away: 9,000 Illegal Apartments

Despite the regulations' passage, not everyone is convinced they go far enough. Francisco Guardeño from the Federation of Neighbourhood Associations highlighted a significant gap: approximately 9,000 tourist apartments currently operate illegally across the city.

"The city's main tourist accommodation sector, almost twice the number of hotel accommodations, operates in the shadows," he said, arguing that the new rules fail to address this underground market.

For the regulations to have real impact, enforcement against unlicensed operators will be just as important as the caps themselves.

What This Means for Expats and Property Owners

For British and other expats who own or are considering buying property in Valencia — whether as an investment or a holiday home — these changes could have a real impact on the viability of short-term letting. If you're thinking of buying a property to rent out on platforms like Airbnb, it's now essential to check whether the neighbourhood already exceeds the new limits before committing.

This article is based on reporting from Euronews, published April 2, 2026. This article is for informational purposes only.