Many communities point the finger at Airbnb, particularly for its impact on the local real estate market. Paris, Honfleur and now the Basque Country have specific measures for seasonal rentals in order to regulate the market and avoid rising prices. The principle of compensation is central here. The principle ? To offer a short-term furnished rental, the owner must also offer accommodation of a similar surface area and in the same city for long-term rental. Our concierge service in Biarritz explain this to you.
What is the problem created by Airbnb rentals in the Basque Country?
As elsewhere in France, Airbnb rentals are very successful in the Basque Country. This sector being particularly touristic, cities like Hendaye, Biarritz, or Anglet see each year a massive influx of travelers who come to take advantage of the beautiful season and the typical charm of these cities. The democratization of rental between individuals, in particular via Airbnb, quickly brought its share of opportunities for owners.
Indeed, with the beautiful season, owners of rental properties see prices increase more than significantly. In this way, it becomes more profitable to offer your accommodation for seasonal rental rather than for long-term rental, even if the accommodation is empty at certain times of the year. The profitability of this approach naturally leads to changes in the real estate market.
Rising real estate prices, difficulty of access to property for future buyers, difficulty for municipalities to attract new residents due to prohibitive real estate prices... For several years now, this has been a major problem stemming from of a new trend that the authorities have so far had difficulty regulating. The ambition of the agglomeration community is thus to contain the number of seasonal rental properties, to stimulate the long-term rental market in the hope of positively influencing local real estate prices.
What compensation principle is in place?
The principle of compensation is not new and seems to be bearing fruit in the sectors where it has been implemented. Each owner wishing to offer his accommodation for seasonal rental will have to, at the same time, offer a similar property (floor area, location, etc.) for long-term rental. Without this, short-term rental can only be done within the limit of 120 days per year.
Exceptions to this rule are holiday rentals rented less than 120 days per year or offered at least 9 months per year to students. Also, commercial surfaces on the ground floor are not affected by this rule. Still, the investment logic for owners is totally different here. Where yesterday it was an easily accessible opportunity, the rule of compensation clearly hinders the course of owners wishing to offer accommodation for seasonal rental.
This principle of compensation voted in March 2022 by 169 votes for, 8 against and 33 abstentions leaves little doubt about the determination of elected officials to act. This measure has applied since June to 24 municipalities classified as tense areas, including in particular Anglet, Bayonne, Biarritz, Bidart, Hendaye and Saint-Jean-de-Luz. To date, it is still too early to assess the impact of such measures, but it would seem that from 2023 the benefits can be assessed.
