(Information sent by the signatory company)
This phenomenon has changed the hotel sector, which has gone from dominating the market to becoming another competitor against tourist rental companies. What was once the parents' second home is today the real estate investment of the new generations: a heritage that, far from remaining empty, generates wealth when it is not used. A refuge value that produces high profitability: approximately 50% more than traditional rental and 30% above temporary rental
Madrid, April 2, 2024.- Architect Cristina Beltrán from the CIVUT studio in Madrid, specialized in tourist licenses, analyzes the economic benefits generated by the democratization of tourist housing. This phenomenon has turned the hotel sector upside down, what was once the parents' second home is today the real estate investment of the new generations: a heritage that, far from remaining empty, generates wealth when it is not used personally. A refuge value that produces a high profitability: approximately 50% more than traditional rentals and 30% above seasonal rentals. Figures that attract a wide variety of investors. But this has not always been the case. Before 2019, there was talk of a "collaborative economy" and tourist housing helped many Madrid residents to survive and get out of the crisis. Many hosts prospered and now manage multiple properties. In 2019, Madrid regulated that the tourist rental of a home must be considered an activity and that it must have a license, which means the illegalization of 99% of the VUT. But as every crisis arises an opportunity, the rise of electronic commerce and the collapse of local commerce with said regulations, which has caused a massive conversion of commercial premises into affordable and tourist housing that worries the City Council, as Borja Carabante recently stated. For this reason, Madrid announced its willingness to address new regulation of this sector, since it considers the current regulations a failure. It has been announced that this regulation will be ready next April and will include "news" about converted commercial premises, with the intention of putting a stop to this practice and promoting local commerce. It should be noted that the serious problem that affects to local trade is not a direct consequence of the increase in demand for tourist accommodation. It is a global event that is largely explained by the enormous increase in electronic commerce. It is also worth remembering that the phenomenon of converting premises into housing took place many years ago, even before the appearance of tourist housing itself, in other major world capitals; For example, in New York, where a new typology called loft emerged as one of the most direct responses to the serious crisis of access to housing. Finally, perhaps it is not idle to note that public policies aimed at protecting commercial proximity cannot be implemented at the cost of stifling an important vector of tourist activity, a sector that according to the latest data from the INE reached 155,946 million euros in 2022, 11.6% of the GDP, which represents the generation of more of 1.9 million jobs, 9.3% of total employment. Therefore, a policy aimed at restricting or prohibiting the proliferation of tourist accommodation, an activity whose economic data supports a significant and sustained increase in wealth for society, may not be entirely appropriate.
Contact Contact name: Cristina Beltrán Contact description: Civut in Madrid - Architect Contact telephone: 910282758
