Two out of three economists have 'negative opinion' of rent cap

The rent cap that recently came into force in 140 towns in Catalonia does not convince economists. 

A new survey by the College of Economists of Catalonia shows that almost two out of three, have a "negative opinion" of the new regulation and defend "it will not help" the housing market. 

The survey, conducted in February among more than 600 professionals, shows that 65% believe it is a negative measure, while a 33% believe it will not reduce the "tension" in the housing market, but will increase it.

However, 28% of respondents believe the new measures will have a positive impact, while 3% believe it will have a "significant positive impact". 

"With housing, there is a problem of political awareness. A lot of the measures must be consulted with the sector," the dean of the College, Carlos Puig de Travy, said, adding that nearby countries and countries of similar economic power allocate around "double" the budget to housing as Catalonia does. 

Drought and politics, their main concerns

Drought is the main problem facing the Catalan economy, economists say, with nearly 43% of respondents citing it as their top concern.

The report highlights a "unanimous" opinion on the negative impact that the drought will have on the economy this year.

Most economists, nearly 80%, believe that the government's drought measures will "increase tensions" in the food industry and "create conflicts between industries" over water use. 

Other concerns cited by economists include the budget deficit (41%) and the political situation (30%).

Economists admitted to being "worried" about the political situation in Catalonia, after the Catalan president called a snap election two weeks ago after failing to pass the 2024 budget.   

After the elections, scheduled for May 12, economists are calling for a "stable" government.