Five-year moratorium on tourist licences reshapes the property market and stalls holiday-let expansion
Nov 13, 2025
The government of the Canary Islands has introduced sweeping regulation banning new tourist-apartment licences in southern Gran Canaria for five years, drastically altering the local holiday-rental market and real-estate investment outlook.
Key takeaways
- Five-year moratorium on new tourist-apartment licences: Existing registrations remain valid, but no new short-term rental licences will be approved in major municipalities in southern Gran Canaria.
- Sharp divergence in asset valuation: Properties already licensed for holiday rentals may increase in value due to scarcity, while newly built or unlicensed units face a steep decline because they cannot legally operate under the tourist-rental model.
- Licence transfer restrictions create long-term uncertainty: The law may limit or ban the transfer of holiday-rental licences upon sale or inheritance, severely impacting the resale value of tourism-investment properties.
- Municipal control and planning decentralised: Local councils gain authority to decide location and density of tourist accommodations, introducing variable regulatory risk across municipalities.
- Capacity caps and conversion bans limit growth: The law caps tourist-use housing at 10 % of residential stock in affected areas and prohibits converting commercial premises or new buildings into holiday lets for their first 10 years.
- Broader agenda to protect housing supply and residents: The regulation is positioned as a move to relieve pressure on the local housing market and curb over-tourism, reflecting a shift away from growth-driven short-term rental expansion.
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