The municipality of La Orotava, located in northern Tenerife, approved 33 months ago to initiate the process of requesting the declaration of a tense zone from the Canary Islands Government. The main objective was to cap rental prices, particularly in the historic center. However, the formal application has not yet been submitted, despite the local council's endorsement of the proposal from Asamblea por La Orotava nearly three years ago.
A recent report by the City Council itself, presented at the Urban Planning commission on July 1st, analyzes property sales and rental prices from 2020 to 2023. The study confirms that the town not only meets the requirements for a tense zone declaration in the historic center but also in most of its neighborhoods. Price increases of up to 129% have been recorded in areas like Pinolere, Aguamansa, and La Florida, significantly exceeding the 19% threshold required for this declaration. Other areas show increases of 60% and 70%.
The Canary Islands Government has not approved any of the tense zone declaration requests received to date. The regional executive, which announced its intention to appeal the state Housing Law but missed the deadline, has stated that its strategy for the housing crisis focuses on "building more and faster," without adopting measures to regulate prices or control speculation.
During the past Tuesday's plenary session, the local government (CC) admitted that the request has not yet been sent to the regional executive. Manuel Pacheco, spokesperson for Asamblea por La Orotava, criticized the delay, pointing to a lack of knowledge about the procedure and the absence of the real estate report in the commission's agenda. Pacheco recalled that the law requires attaching a specific action plan when the conditions for tense zones are met.
David Felipe Benítez, councilor for Finance and spokesperson for CC, explained that the study on the residential market is "much more ambitious" than a simple report for the tense zone declaration, covering multiple sectoral and district aspects. He noted that the City Council does not declare the zone, but rather the regional Government, and that the plenary agreement will be sent along with the study once all data is available for analysis. He added that the municipal action plan will be defined based on the regional response.
Furthermore, Pacheco (Asamblea por La Orotava) complained that the City Council has not increased the Property Tax (IBI) for large property holders, such as banks and construction companies, for 18 years. According to the La Orotava General Urban Planning Plan (PGO), there are approximately 2,500 vacant homes. The 2023 Housing Law allows for tripling the IBI for large holders, potentially generating millions in revenue for social or housing policies. Benítez responded that the council approved a 50% surcharge on IBI for large holders in 2018, but its practical application has been delayed due to the lack of legal definitions for "large holder" or "vacant dwelling," issues clarified by the 2023 law. A study is currently underway to assess the economic impact and feasibility of the measure, which will require administrative work and data integration, such as water consumption.
