Regularization of Rental Prices in Catalonia: A Substantial Change in the Real Estate Market

This February will mark a milestone in the Catalan real estate market with the reinstatement of price control measures in 140 municipalities. This agreement between the Generalitat and the Ministry of Housing and Urban Agenda (MIVAU) will reactivate the limitation of prices in rent, a measure that, according to the Housing Law, will freeze rents in areas declared as a stressed residential market for at least three years, with the possibility of an annual extension.

Catalonia becomes the first to apply price control under the new regulations to offer improvements in the current situation of rental prices apartments.

These adjustments in prices will have their impact on owners and tenants, such as immobiliaria Girona, Sant Cugat and on the Costa Brava, we have explored the key aspects that you should consider if:

• You own a rental apartment
• You’re a tenant and you live in a rental flat.

Case 1: You own a rental apartment

As an owner of a rental apartment in Catalonia, the new regulation that establishes price control from February 2024 implies significant changes in the management of your property. With the possibility of your area being declared a stressed residential market, it’s crucial to understand the implications.

Key Points:

• Income Freeze: The new law allows the freezing of income for a minimum period of three years, with the possibility of annual extension. This means that you will not be able to make arbitrary rent increases during this time.

• Stressed Areas Declaration: The Generalitat will determine the stressed residential market areas. It is vital to be aware of these statements, as they will directly impact the way you manage rental prices on your property.

• Administrative Procedures: There may be new requirements and administrative procedures to comply with the regulations. Stay informed about the procedures you should follow and make sure you comply with all legal obligations.  

• Appeal of Unconstitutionality: Despite the agreement, the Generalitat has filed a constitutional complaint. This factor adds an element of uncertainty, and it is advisable to closely monitor the development of this resource to understand any potential changes in regulations.

• Impact on Supply and Demand: See how price regulation affects supply and demand in your area. Anticipate possible changes in market dynamics and adjust your strategy accordingly.

Case 2: You are a tenant and live in a rental apartment

As a tenant in Catalonia, the new rental regulations have direct implications for your home and monthly expenses. It is essential to understand how it will affect you and how you can plan accordingly.

Key Points:

• Rent Freeze: Your rent will be frozen for at least three years, with the possibility of an annual extension. This can provide some short-term financial stability, as you should not expect unexpected increases in your monthly payments.

• Stressed Areas Statement: If you live in an area declared a stressed residential market, be prepared for the possibility of specific measures affecting your community.

• Administrative Procedures: There may be changes in administrative procedures related to your rental agreement. Make sure you understand any new obligations or changes in documentation.

• Constitutional Complaint: The submission of a constitutional complaint by the Generalitat adds some uncertainty. Stay informed about the development of this resource to understand how it may affect your rights as a tenant.

• Access to Housing: See how price regulation impacts housing supply in your area. Anticipate the possibility of increased demand and adjust your housing search expectations and strategies accordingly.

The 140 municipalities with a stressed housing market are concentrated mainly in the metropolitan area of Barcelona and on the coast of the country.

Barcelona, Girona, Tarragona and Lleida are part of the list of towns where there is a special risk of insufficient supply of affordable housing.

Where is the rental market stressed?

In these 140 municipalities live 6.2 million people, 80.6% of the population of Catalonia.

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In both cases, the key is to stay informed and adapt to changes in the regulations, making sure to comply with all legal obligations and anticipating possible adjustments in your rental situation.

Stay informed and prepare to adapt to this new reality, you can now request a session with a real estate agent Espígul.