Barcelona approves its tourist accommodation plan

On 27 January 2017 the full council of Barcelona City Council gave final approval to the PEUAT, the Special Urban Plan for Tourist Accommodation. The plan limits new hotel and tourist-flat places by zone and foresees a reduction in the centre of the city. It is one of the most significant municipal decisions of recent years for the tourist sector and for those who invest in property with that purpose.

The approval came after a long debate on how to live with very intense tourism in a compact city, with neighbourhoods where pressure on housing, local shops and public space is noticeable. For owners, investors and companies in the sector, the plan set out for the first time, in detail and by zone, where the supply of accommodation could grow and where it could not, with direct consequences for their projects. For many owners, the first question became whether the property could be run as tourist accommodation at all, and on what conditions.

What the plan regulates

A special urban plan sets which uses are permitted in each area of the city and under what conditions. Here, the plan divides Barcelona into zones with different rules for new tourist places: in some, existing supply is frozen or reduced, and in others growth is allowed within limits. The zone in which a property lies becomes a decisive piece of information.

Tools of this kind do not act on the market through a general ban, but through a map of differentiated rules. That calls for looking at each case in detail: two properties with similar characteristics can have very different futures depending on their location. So before accepting any income projection, it is necessary to confirm what the planning rules allow for that specific address, today and in the foreseeable future. It is a simple check that should be made before signing any purchase, reservation or lease with that purpose.

Effects on property owners

Anyone who owns a property intended for tourist use, or is considering buying one for that purpose, must check which zone it falls in and what licence and conditions are required. The rules affect the value of the investment, the expected return and the ability to transfer it: an asset whose activity cannot be extended or handed to a third party is worth something different from one that can.

It also concerns those who already operate accommodation. It is worth checking that the activity has the corresponding authorisation, that the required conditions are met and that contracts with operators, managers or tenants reflect the regulatory risks. A well-documented business is easier to defend before the authorities and simpler to sell or finance if at some point that is wanted.

Before deciding

Before buying or refurbishing a property for tourist purposes, it is wise to ask a planning lawyer to confirm its position. Municipal criteria can change and are decisive for any short-term rental project. That consultation, a small cost compared with the amount of the transaction, can prevent mistakes that are very hard to correct afterwards.

As a general rule, it is prudent to assess each project also with an alternative use, for example a long-term let, so that the investment does not depend on a single authorisation. And keeping the relationship with the authorities and neighbours on a footing of dialogue and compliance reduces the conflicts that, in the long run, end up weighing on the value of any property.

In the property market, planning regulation is part of the price.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.