Investors of tourist apartments in Seville now focus on rental apartments

Published
03/12/2018

In 2014, businessmen and individuals began to convert into tourist apartments the houses that they could not sell because of the crisis. Now there is an opposite effect: those who invested in tourist apartments are detecting a saturation of the market, which coupled with great uncertainty about the future tightening of the regulations that regulate them, is making some of them now bet on the residential market. A good example of this is the company Kolac Capital, which has just bought four buildings in the Center of Seville and will use them for long-term rental.

This situation and the rejection that is causing the increase in tourist apartments, which are sometimes confused with tourist housing, are leading many investors to change their projects on the fly and allocate some buildings they had bought for that purpose to the long-term rental market. "It's a trend all over Spain," say business sources.

One of the companies that has changed its business philosophy is Kolac Capital, which has just bought in Seville - through the consulting firm Inerzia - a building of 300 square meters in Calle San Esteban 32, corner with Vidrios, where previously was the bar restaurant Antiguas Piletas. Instead of making tourist apartments, Kolac Capital will destine it to the residential market.

Confusion

"The problem is that there is a lot of talk about tourist apartments when in fact there is talk about houses for tourist purposes and that is a problem. It is a reality that there is a social alarm generated by homes for vacation use, which are usually in buildings where residents feel annoyed. However, this has spread to the business of tourist apartments, which are hotel establishments. What has happened? Well, the Administration has reacted by tightening the regulations and municipal ordinances," adds the head of Kolac Capital.

"The uncertainty about the future tightening of the regulations governing tourist apartments is making reconsider investments because, he says, entrepreneurs are afraid to undertake tourist apartment projects and that we are trapped two years by a legislative change.

The investments that have been made in Seville in tourist apartments have not only come from the hand of local and national entrepreneurs, but also investment funds, who do not want to be involved in problems. In this sense, Lasheras stresses that "investment funds are like banks, they have learned that the reputational factor is decisive when approving an investment,

"they also blame the tourist apartments for the increase in the price of rents in the centres of the big capitals, as well as the displacement of residents to other peripheral areas. The historic centres of tourist cities are changing with investments in tourist apartments, but this is not a Sevillian or Spanish trend, but a European and global one," he adds.

For now, the Government of Juan Espadas has announced the imminent implementation of measures for the regulation of housing for tourism purposes in the face of the legal vacuum in this area. Therefore, it will process a modification of the PGOU to recognize the use of tourism as distinct from residential, and a specific regulatory ordinance will be drafted. Thus, there will be a specific ordinance that determines the criteria, technical requirements and areas where this use can be developed.

Modification of the PGOU

Tourist accommodation will thus become part of a new category within tertiary use called "accommodation", which would include all models of accommodation in accordance with the Andalusian Tourism Law (hotels, guesthouses, tourist apartments and any other formula within the regulations) The measure will oblige homes for tourism purposes to apply for a license of tertiary accommodation, such as hotels, guesthouses or apartments, which will limit its implementation urbanistically.

At present, according to the studies carried out, the concentration of housing for tourist purposes occurs mainly in the Old Town. The limitations established in this document will be determined by the rules of free market and free competition.

Many of these homes for tourist purposes are marketed through platforms such as Airbnb, which gave until October 1 to register in a city that already has 10,600 residential accommodations, of which are legalized about 4,000.

Credits https://sevilla.abc.es/sevilla/sevi-inversores-apartamentos-turisticos-sevilla-centran-ahora-pisos-alquiler-201811292333_noticia.html

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