Big change for Malaga property owners as tourist apartment and hotel ban gets final approval

Malaga City Council has confirmed one of the city’s biggest housing reforms in years, approving new planning rules that changes the future of tourist accommodation. Officials say the move is designed to protect residential housing, but the decision could also have lasting consequences for property owners, investors and anyone hoping to buy in the city.

Final approval ends months of uncertainty

Months of consultation have now come to an end after councillors officially voted to approve the change. Final approval means a blanket three-year moratorium will block all new holiday rentals (VUTs), tourist apartments, hostels, and hotels of any category on land designated for residential use across the entire city.

This new comprehensive ban steps up the city’s previous restrictions, which had already blocked new holiday rental registrations in 43 specific neighbourhoods where tourist properties accounted for more than 8 per cent of the housing stock. Existing licensed holiday rentals can continue operating under current regulations, but no additional licences will be issued on residential plots. City planners argue the measures are proportionate, legally justified and necessary to protect homes for permanent residents.

Protecting residential housing

Final approval also builds on Malaga’s hopes to reshape tourism-led development. By formally modifying the city’s General Urban Plan (PGOU), Malaga has completely eliminated the rule that previously allowed tourist accommodation as a “compatible and alternative use” on residential plots. The three-year suspension on new hotels, hostels and tourist apartment projects in these areas signals a broader, permanent effort to protect housing for permanent residents rather than expanding visitor accommodation.

The decision made by Malaga City Council is part of the bigger picture addressing growing pressure on the local housing market. Although these wider restrictions were being prepared, a final “last-minute rush” of applications was submitted to the council registry in the days leading up to the final vote, prompting a race by developers to obtain permission before the official deadline.

Housing pressures still an ongoing concern

Malaga has experienced one of Spain’s fastest increases in tourist accommodation during recent years, and rental prices have continued to climb. National figures place the city among Spain’s leading tourist destinations, with rapid growth in visitor accommodation since 2019 adding to concerns over housing affordability for local residents.

City leaders believe the restrictions will help preserve residential neighbourhoods and improve access to long-term housing. Critics, however, argue that further action may still be needed to make homes more affordable. Legal backing from the Andalucian High Court has also strengthened the council’s position, ruling that limits on tourist accommodation can be justified where residential housing is under pressure.