The rental market is on the eve of a major change. With the introduction of the new price index for rental properties, as included in the Housing Act, rental prices in so-called stressed zones will fall significantly.
David Lucas, State Secretary for Housing and Urban Agenda, has announced that this measure will be especially noticeable in Barcelona. Rents there could be reduced by more than half.
Examples that speak
An apartment on Sant Crist Street in Barcelona, currently rented for €1,827 per month, should only cost €951 after applying the index. Similar reductions can also be seen at other homes in the city. In addition, rental prices will decrease drastically to amounts significantly below current market prices.
Purpose of the measure
The new system aims to regulate rental prices in tense zones, facilitate access to rental properties and counter speculative price movements. Large landlords, who own more than 10 properties in these zones, will be particularly affected by the index. The index determines maximum and minimum rental prices based on various housing characteristics.
Implementation in March
The index will be published today on the website of the Ministry of Housing. After an information period of 10 days, autonomous communities can designate the tense zones. Then, after a statutory period of one to two days, the rental price limit comes into effect. This measure has an initial validity of three years, with the possibility of extension.
Call to autonomous communities
So far, only Catalonia has applied for tense zone status for 140 municipalities. Other regions such as Asturias, the Basque Country and Navarra have shown interest, but have not yet officially announced this. Lucas encourages more communities to participate in this initiative.
A uniform index
The index, which will be uniform nationwide, is based on tax data and will be updated annually. The aim is to provide legal and economic certainty while maintaining a technical and precise system that will be continuously improved.
With this revolutionary step, the government hopes to put an end to the rental crisis in tense zones, making housing affordable for a wider audience.
Also read: Rental prices of homes in January historically high in Spain
