Palma City Hall has announced the city wide measures ahead of plans by the government of the Balearics to regulate private holiday rentals across all the islands.
Palma Authorities announced their intention to ban apartment holiday lets in the city from June in a bid to curb a practice which is pricing out local residents.
The deputy mayor, Antoni Noguera, boss of urban planning announced measures that could see property owners face fines of up to €40,000 for privately renting out their homes.
The measure comes as a reaction to a surge in the price of housing in the Balearic capital, where property prices went up by 7.4 % last year, and the cost of renting has soared by a staggering 40 % in the last four years.
It isn’t the first Spanish city to attempt to curb private rentals. Authorities in Barcelona, Spain’s most popular tourist destination are waging war on the shared holiday rental economy, imposing new regulations and steep fines on companies such as Airbnb and HomeAway.
Palma City Hall has jumped the gun and announced the city wide measure ahead of plans by the government of the Balearics to regulate private holiday rentals across all the islands.