The real estate market in Valencia is undergoing a major shift following the March 20 announcement: the City Council is set to approve a new regulation that will make opening new tourist apartments virtually impossible. 

The Urban Planning Councillor, Juan Giner, confirmed that this will be one of the most restrictive regulations in Spain, aiming to curb tourism saturation and protect residential housing. 

What will change with the new regulation?

The new rules introduce strict limits affecting investors, property owners, and buyers:

- Maximum of 2% of homes per neighborhood for tourist use
- Limit of 8% tourist capacity relative to registered residents
- Cap of 15% for ground-floor commercial units
- Strict physical requirements for new licenses

In practice, this means that in many areas, obtaining new tourist licenses will no longer be possible.

The 2% rule: the key limitation

The most important measure is:

Only 2% of total housing stock per neighborhood or district can be used for tourist purposes.

This turns existing licenses into a scarce and highly valuable asset.

The three “administrative locks”

The regulation introduces three automatic control mechanisms:

1. Population ratio (8%)

Tourist accommodation capacity cannot exceed 8% of registered residents.

2. Housing ratio (2%)

Only a small portion of properties can be used for tourist rentals.

3. Commercial protection (15%)

Limits tourist use in ground-floor premises to protect local businesses.

Once any of these thresholds is reached, no new licenses will be granted.

Requirements for new tourist apartments

Even in non-saturated areas, opening a tourist apartment will be very difficult:

- Only on ground or first floors
- In mixed-use buildings
- No residential units on the same landing
- Independent access from the street

Stronger control and enforcement

The regulation also increases oversight:

- Creation of a Municipal Tourist Accommodation Register (CATAV)
- Dedicated inspection plan
- Closure of unlicensed properties

Only fully legal and registered properties will be allowed to operate.

What about existing tourist properties?

A key measure:

• A 1-year period to convert tourist apartments back into residential use

This may increase the supply of long-term housing.

Market impact in Valencia

For investors

• Tourist rental investments become much harder

• Existing licensed properties increase in value

• Greater legal certainty

For buyers

• More opportunities in residential housing

• Less tourism pressure in neighborhoods

For sellers

• A tourist license becomes a major selling point

• Without it, the focus shifts to residential buyers

Is Valencia still a good investment in 2026?

Yes — but with a different strategy:

- Less volume, higher quality
- More value in licensed assets
- Increased focus on long-term rentals

Valencia remains attractive, but more regulated and professionalized.

Conclusion

This regulation marks a turning point in Valencia’s real estate market.

👉 Tourist licenses will become scarce, valuable, and difficult to obtain.