Spain's Valencia shuts down over 1,000 illegal tourist flats in 18 months

Local authorities in Valencia have shut down over 1,000 tourist flats in the eastern city over the last 18 months but eye-watering price rises mean many locals might view the crackdown as 'too little, too late'.

The Mediterranean capital has seen major property market inflation in the post-pandemic period, with purchase prices near doubling and rents skyrocketing by as much as 75 percent in six years. Local authorities have responded with a moratorium on new tourist flat licenses, and also cracked down on properties operating illegally.

In a statement released on the Valencia town hall website, it states: "In the last year and a half, as a result of the inspection work carried out by the Town Planning and Local Police departments of the city council, more than 1,000 illegal flats have been closed down in the city."

READ ALSO: €190K to €370K - Property prices in Spain's Valencia double in six years

The city's Town Planning and Housing Councillor, Juan Giner, said in the local press recently that the town hall's measures have "put the brakes on tourist flats" in Valencia. He also reiterated the moratorium on new licences in all districts of the city while new regulations are approved "which will be the most restrictive in Spain", he claimed.

"We are combating the social problem generated by illegal tourist flats with action and determination and by drawing up regulations which, based on legal certainty, will put a stop to the proliferation of these flats," Giner stressed.

Tourist flats in the Mediterranean city have increased rapidly in the post-pandemic period. As The Local has reported extensively in recent years, this has serious consequences on the property market by limiting supply as prices and demand skyrocket amid increased tourist and migrant arrivals in the coastal city.

Property prices have doubled in just six years in the city. According to the Housing Observatory of the Polytechnic University of Valencia, the average rental price in the city of Valencia is €1,633. This is 75 percent more expensive than in 2019.

Locals have planned further protests in the city in the coming weeks and months.

READ ALSO: Valencia plans more housing protests as prices keep rising

There's also growing inequality between renters and buyers. Reports in local media Levante state that the percentage of family income needed to rent a home in Valencia is double that needed to buy one, with the falling cost of mortgages due interest rates drops widening the gap between the resources needed to rent and buy.

"Valencia is the Spanish property market, along with Barcelona, with the greatest difference between the effort needed to buy and the effort needed to rent," Levante adds.

Tourist flats have played a significant role in driving up prices. While new regulations are finalised by the town hall, authorities also claim that police reports against illegally operating or unlicensed tourist flats have increased by 738 percent.

Valencia's local police force, which, according to the statement, "coordinates the seven neighbourhood police stations in the city" has issued more than 800 inspection reports to tourist flats. Most of these reports are filed for lacking the correct authorisation.

"In the last year and a half, the agents have made more than 700 reports, compared to 84 in 2023 and 73 in 2022," it adds.