Costa del Sol Short‑Term Rental Bans:

Do Property Prices Really Fall?

 

In recent months, new regulations across the Costa del Sol have allowed communities to ban short‑term rentals with a majority vote. This has raised an important question for buyers and investors: are property prices falling in areas that restrict touristic licences compared to those that allow them?

🏡 What’s Happening on the Costa del Sol

  • Legal changes: Since the October 2024 Supreme Court ruling (codified in April 2025), homeowner associations can ban short-term rentals with a 3/5 majority vote.
  • Impact on licensed properties: Existing touristic licences remain valid, and these properties continue to command a premium because they generate rental income. Investors value them highly, especially in Marbella, Málaga, and Estepona.
  • Communities with bans: Where bans are enforced, property values haven’t collapsed. Instead, they attract a different buyer profile — people seeking peace, exclusivity, and long-term residential living. This demand has kept prices stable, and in some cases, increased them due to reduced noise and community conflicts.

📈 Price Trends

  • Licensed properties: Higher prices because they can legally operate as holiday rentals. Investors are willing to pay more for guaranteed income streams.
  • Non-licensed / banned communities: Prices remain stable or rise modestly, as these areas appeal to buyers prioritizing lifestyle over rental yield.
  • Overall Costa del Sol market: Despite regulatory tightening, demand from international buyers keeps prices buoyant. Málaga, Benahavis and Marbella in particular have seen strong price growth, driven by tourism and expat demand.

⚖️ Key Takeaway

Communities on the Costa del Sol that ban short-term rentals are not generally seeing property prices fall. In fact, bans tend to stabilize or even increase values for buyers seeking residential use, while properties with touristic licences remain more expensive due to their rental income potential.

  • No evidence of price drops in banned communities — instead, the market is segmenting:
    • Investor-driven demand → higher prices for properties with touristic licences.
    • Lifestyle-driven demand → stable or rising prices in communities banning rentals.

This means the choice of community depends on your investment strategy: if you want rental yield, licences are crucial; if you want exclusivity and tranquility, banned communities may actually offer stronger long-term residential value.

 

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