In 2025, the city of Granada in Andalusia, Spain, has joined other popular tourist destinations in implementing strict new regulations to control the growing impact of short-term vacation rentals. These changes aim to reduce pressure on local housing, protect residents’ quality of life, and bring order to an often unregulated rental market. The new laws are already reshaping the property landscape for landlords, investors, and potential buyers.
Overview of the New Rental Regulations in Granada
Starting January 2, 2025, the following rules apply to all short-term rental properties:
Mandatory Registration
All short-term rentals must be officially registered in the national housing database. Properties without a valid registration number are prohibited from being listed on rental platforms like Airbnb or Booking.
Guest Data Collection
Owners are required to collect and submit detailed guest information, including:
- Full name
- Official ID number
- Residential address
- Contact details
- Travel companions’ identities and relationship status
Rental License Caps
Certain areas of Granada, particularly the historic city center and tourist-heavy neighborhoods, are subject to a moratorium on new licenses. This means no new short-term rentals can be registered in these zones.
Regular Inspections and Fines
A new system of inspections and penalties has been introduced. Illegal rentals or those operating without proper documentation can face significant fines.
How These Rules Are Impacting the Real Estate Market
The regulation rollout is already influencing Granada’s housing sector in several key ways:
Shrinking Supply
With a cap on new tourist licenses, the number of available short-term rentals is declining. Property owners are reconsidering their strategies, with many shifting toward long-term rental or selling their property altogether.
Rising Rental Prices
Tourist demand remains strong, but supply is now limited. This imbalance is pushing up prices for legal short-term rentals, making them more exclusive — and potentially more profitable — for those who already hold a valid license.
Decreased Investment Interest
Investors are showing more caution. The increased complexity and restrictions are causing some to turn to other cities or to refocus on long-term rental investments instead of holiday lets.
Property Prices in Granada in 2025
Real estate values vary widely depending on location and property type. Here are average price ranges as of early 2025:
- City center apartments: €2,000 to €2,800 per square meter
- Apartments in residential districts: €1,500 to €2,000 per square meter
- Detached houses and townhomes: €2,500 to €3,500 per square meter
Premium locations like Albaicín, Realejo, and areas near the Alhambra command the highest prices, while newer neighborhoods remain more affordable and stable.
How Buyers and Investors Can Adapt
Those looking to buy property in Granada or maintain existing investments should consider:
- Switching to long-term rentals, which remain in steady demand, especially from students, professionals, and local residents.
- Targeting neighborhoods not subject to licensing restrictions, where new short-term rentals are still legally permitted.
- Focusing on high-quality units, as well-located and well-maintained properties remain attractive even with regulatory limitations.
Conclusion
Granada’s new tourist rental regulations mark a major shift in how the city balances tourism growth with residents’ needs. While these rules may reduce short-term rental profitability, they also aim to stabilize the housing market and improve quality of life for the community.
For property owners and investors, this is a time to rethink strategy. Though short-term letting is now more regulated and competitive, Granada remains a strong real estate market, offering long-term opportunities thanks to its cultural richness, stable demand, and growing appeal among lifestyle buyers.
