The Dénia council has taken a significant step in the fight against increasing pressure on the housing market. With a new by-law, the city council intends to number of tourist homes in the urban area drastically reduce. Especially in the Traditional residential areas Holiday rentals will virtually disappear in the coming years.
For investors, second-home owners, and potential buyers, this is a development that could significantly affect the property market in Dénia.
Why is Dénia taking this measure?
According to the council, it has become increasingly difficult for residents to find affordable housing. Whereas Dénia was previously known primarily for family holidays with longer stays, the rise of short-term rental platforms has led to a significant increase in tourist rentals in residential areas.
Many homes are now being purchased as investments for holiday rentals, which reduces the supply for permanent residents and causes prices to rise.
Dénia currently has approximately 5,000 registered tourist properties. Of these, 639 are located in the urban area. It is precisely here that the council now wants to intervene.
Three zones with different rules
The new regulation divides the urban area into three different zones.
Northern zone: limited growth permitted
In the area between Camí del Llavador and the beach, including parts of Miguel Hernández and Puerto Romano, remains Tourist letting possible.
As there are relatively few permanent residents living here, a limited number of new planning permissions may still be granted. The maximum has been set at 217 holiday homes, representing approximately 151% of the total housing stock in this zone.
2. Centre: permits are frozen
In the city centre and areas with a mix of residential, retail, and office spaces – such as Marqués de Campo, Colón Street, El Raset, Fontanella and Sandunga to become no new permits more provided.
The current number of licences will be maintained, but new applications will only be possible when an existing licence expires.
3. Residential areas: complete phase-out of holiday rentals
The most significant measure applies to the residential areas of Dénia.
Areas such as Les Roques, Saladar, Patricio Ferrándiz, Marquesado, París-Pedrera, Valencia Avenue, Grupo Mariner, Sant Antoni in Trinquet become fully closed to new tourist rentals.
Existing permits will remain valid for the time being, but will not be renewed after their expiry. As regional regulations stipulate that permits will begin to expire from 2029, the municipality expects these residential areas to be completely free of holiday rentals by that time.
This will cause the number of tourist properties in the urban area to fall from 639 to approximately 344.
What does this mean for property buyers?
For anyone considering purchasing a property in Dénia with a view to holiday rentals, it is recommended location No more important than ever.
Not every property with a current tourist permit will retain this possibility in the future. In many residential areas, holiday rentals will disappear within a few years, while this may remain possible in other areas.
A thorough check of the zoning and future letting potential is therefore essential before making a purchase decision.
The Marines, Las Rotas and El Montgó remain unscathed
For property owners in traditional holiday destinations, there is good news for the time being.
The popular areas The Marines, Les Rotes and El Montgó fall outside the new restrictions. Holiday rentals will continue to be permitted here under existing regulations. "La Xara is also not included in the new regulation.".
The municipality has indicated that it will continue to closely monitor the development of these areas.
A trend we are seeing more and more in Spain
Dénia is not alone. Measures are being taken in various Spanish cities and coastal municipalities to restore the balance between tourism and housing. On the one hand, municipalities are trying to maintain their appeal as a holiday destination and, on the other, to keep sufficient housing available for the local population.
For property investors, this means that not only the location and the return important are, but also the future regulation around holiday rentals.
Anyone who wants to invest in property on the Costa Blanca would therefore be well advised to obtain good legal and urban planning advice beforehand. The new rules in Dénia show that the possibilities for tourist rentals are no longer a matter of course.
At Dacasas Real Estate we closely follow developments in the property market and local regulations. We not only help buyers find their ideal home, but also make an informed investment that suits their objectives.
Are you considering buying a property in Dénia or on the Costa Blanca? Please feel free to contact us. We are happy to advise you regarding the areas where holiday rentals will remain possible and which locations best suit your plans for personal use, rental, or investment.
