Tourist Licence Crackdowns, Foreign Buyer Shifts, Ocupa Law Changes & a Positive Future for Water Access
As we move further into 2025, the Costa Tropical property market continues to evolve rapidly, shaped by new regulations, shifting buyer demographics, and long-awaited infrastructure investments. This month’s report brings important developments for both current property owners and those thinking of buying or selling in southern Granada.
Here’s what’s happening—and what you need to know.
Tourist Licences – The Real Bite Has Begun
One of the most pressing and long-discussed topics in recent months has been the crackdown on tourist licences (viviendas turísticas). While there has been plenty of speculation in the past, we’re now seeing real and widespread enforcement.
In the province of Granada alone, over 1,000 licences have now been revoked, following similar actions that began in Málaga and started with a freeze on new licences in Granada city.
What’s more, from April 3rd, 2025, tourist licences can no longer be transferred when a property is sold. This is a significant shift—and a huge area of confusion even for some legal professionals.
👉 If you’re selling or buying a property with a tourist licence, it’s essential to get proper advice. At Hola Properties, we’ve been working closely with legal experts and regularly advise clients on how to avoid expensive mistakes. Don’t risk assuming a licence will transfer with the property—because in most cases, it won’t.
Foreign Investment Continues to Rise—With Some New Players
Andalusia now represents around 20% of Spain’s total property transactions, and foreign investment continues to play a major role in this trend. But there’s been a shift in who is buying—and why it matters to sellers.
The Costa Tropical remains popular with Northern Europeans—Belgians, Dutch, Germans, and Scandinavians—but we’re now also seeing a notable rise in American and Eastern European buyers, particularly from Romania.
For sellers, this is more than just an interesting demographic trend. American buyers, in particular, are used to highly regulated real estate systems back home. In Spain, where the property industry is still largely unregulated, these buyers are actively seeking agents who operate under a code of ethics and who are registered professionals.
Many of our U.S. clients have told us directly that they won’t buy through agents who aren’t accredited—even if the property is listed elsewhere. They want assurance, transparency, and a level of service they can trust. Sellers take note: working with a trusted and recognised agency like Hola Properties can open your home to an increasingly important international market.
Ocupa Law Shift—A Small but Important Change
For years, the word “Ocupa” (squatter) has struck fear into the hearts of Spanish homeowners—particularly those with second properties. Spain’s laws have often appeared to favour the squatters over the rightful owners, with landlords unable to act even when their homes are unlawfully occupied.
However, there’s been a potentially significant shift in the tide. In Barcelona, the Provincial Court has ruled that property owners can now legally cut off services such as electricity and water in certain cases of illegal occupation. This is a marked change from previous rulings where such actions were considered illegal—even if the occupants had broken in.
While this ruling currently only applies to Barcelona, it sets a legal precedent that could begin to influence how courts in Andalusia and other regions interpret similar cases.
Luckily, the Costa Tropical has not been a hotspot for this problem, but with changes in neighbouring regions, owners in our area must stay informed. As always, our team is happy to offer guidance and support if you have questions about protecting your property.
Water Infrastructure Boost—A Long-Awaited Project Approved
One of the most exciting pieces of news for residents and property owners in the Costa Tropical is the approval of €80 million in funding to support new irrigation and residential water infrastructure.
This project, centred around the Rules Dam (Presa de Rules) near Vélez de Benaudalla, has been in discussion for years. Thanks to recent rainfall, the dam has reached much healthier levels compared to 2024—and now, the green light has been given to start channelling that water to both agricultural and residential zones.
This will benefit a wide area, including Motril, Salobreña, and Almuñécar, and will ease pressure on water supplies as both local populations and visitor numbers grow. Although the works will take time, it marks a very positive step forward for the region and will support both existing property owners and future development.
Looking Ahead: What This Means for Buyers and Sellers
If you’re considering selling your property, it’s important to understand how these market changes affect your position:
- The tourist licence regulations could limit the number of properties available with existing licences—if your home qualifies, this could make it more attractive (but you must understand the new rules).
- Working with a reputable, registered agency like Hola Properties is more important than ever, especially if your buyer is international.
- Infrastructure improvements like water access can add value to your property—especially in areas where utilities have historically been a concern.
For buyers, now is an excellent time to explore the Costa Tropical. Despite regulatory changes, demand remains strong, and the region continues to offer a unique blend of natural beauty, lifestyle, and investment potential.
Final Thoughts
As always, Hola Properties is committed to keeping you informed, providing honest advice, and helping you make the best decisions—whether you’re buying, selling, or simply exploring your options.
📊 Stay tuned for our new monthly stats update, launching soon, which will give deeper insight into sales trends, prices, and demand across the Costa Tropical.
📞 Got questions about your property or plans to buy or sell? Contact us anytime for personalised, no-obligation advice. 0034 858 215 333
Looking for a trusted, transparent estate agency on the Costa Tropical? Choose Hola Properties—where your interests always come first.
