PROPERTY SEARCH
Tourist licence ban in Altea sparks fears of property market collapse
Real estate agents fear the year-long ban will drive investors away from the Alicante city
Real estate agencies in the Alicante municipality of Altea are sounding the alarm about the negative impact of the ban on new residential tourist licences, which is set to remain in place throughout 2024.
Three months after the decision was made by the Altea City Council, local real estate agencies report that approximately 250 potential investors have taken their business to nearby towns like Calpe, L'Alfàs and Polop. These investors were looking to buy properties in Altea, renovate them, and turn them into holiday rentals, but the current suspension has made it impossible for them to do so.
According to the Local Association of Merchants and Entrepreneurs of Altea (ALCEA), which represents 20 real estate agencies, the suspension of licenses for new tourist apartments has caused concern among investors who fear they will not be able to recoup their investments this year. This, in turn, may lead to a decrease in property values and a loss of confidence in the local real estate market.
In response to these concerns, Alday and three other agencies from Altea have formed a working group to address the issue. They have invited the municipality's political leaders to join them in finding a solution that benefits everyone involved. The group believes that suspending or halting the issuance of licenses for new tourist homes is not the answer, as it will only drive property owners to switch to short-term or even illegal rentals, leading to a lack of control and potentially dangerous situations.
The Urban Planning department decided to bring in the ban on new licences in January following several complaints from residents that a glut of expensive holiday homes was pricing regular year-round renters out of the market, as is happening in other parts of Spain.
However, the real estate sector believes that the current approach may backfire and ultimately harm the local economy. By limiting the supply of available long-term housing, the city may end up driving away the very people who contribute to its vitality and prosperity. As such, they are urging the local government to reconsider its stance and work together to find a solution that works for everyone.
Image: Freepik
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