Travellers heading to Valencia may soon find fewer short-term rental options, as city authorities introduce strict new rules to curb overtourism and protect local housing.

The Spanish city has officially approved regulations that cap tourist apartments at just 2% of total housing in each district. The move comes in response to growing protests from residents, who have raised concerns about rising rents, housing shortages, and what they describe as “tourist inflation.”

Under the new framework, 98% of residential properties must now be reserved for permanent residents, marking a clear shift away from a tourism-heavy development model. City officials say the goal is to rebalance the housing market and restore stability in neighbourhoods heavily impacted by short-term rentals.

The restrictions go further. The total number of tourist accommodation places – including both hotels and rental apartments – will be limited to 8% of the registered population in each district. In addition, no more than 15% of ground-floor space in residential buildings can be used for tourist accommodation.

Local authorities argue that these measures are necessary to address years of rapid growth in short-term rentals, which have transformed parts of the city. Spain has already taken action at a national level, including the removal of around 65,000 illegal listings from platforms such as Airbnb.

However, some residents and housing groups remain sceptical. They point to a large “shadow market” of unregistered tourist apartments – estimated at more than 9,000 units in Valencia alone – which they say continues to put pressure on housing availability and prices.

For travellers, the changes could mean reduced availability and potentially higher prices for short-term stays, particularly in central districts. Hotels and regulated accommodation may become the primary option, especially during peak seasons.

The move reflects a broader trend across Europe, where cities are increasingly introducing stricter controls on tourism to balance economic benefits with the needs of local communities. In Valencia’s case, the message is clear: future tourism growth will be more controlled, and more focused on sustainability than volume.