Rents in Catalonia drop by 3%-5% after introduction of rent cap

Rent prices in Catalonia fell between 3% and 5% in the first two quarters of 2024, coinciding with the implementation of rent caps.

This was confirmed on Thursday by the Territory minister, Sílvia Paneque, who said there had been a "containment" in rental prices.

"We are seeing a certain effect," she said, stressing that to reinforce the measure it is necessary to intensify the construction of social housing.

Catalonia was the first - and so far only - autonomous community in Spain to introduce a rent cap, which came into effect in March.

The cap was enforced in 140 towns and cities across Catalonia, covering 80% of the population. These areas have been classified as tense housing zones.

In these zones, new rental contracts cannot exceed the price of the last contract in the last five years, adjusted for inflation.

For properties owned by landlords with more than five units, rents cannot exceed the reference price set for the property, which could result in potential rent reductions.

The government will release complete and accurate rent data for the second quarter next week.

These figures will be significant as they will reflect the first full quarter under the rent cap system.

Auction of properties owned by Clínic Hospital

The tenants' union has called on the government to stop the auction of five properties owned by the Clínic Hospital, located in different districts of Barcelona. 

The five buildings have 55 apartments, with more than a hundred neighbors who would be "at risk of eviction," the union said.

Under the terms of the auction, there will be five lots, one for each property, with a total minimum value of €12.7 million. This price is subject to upward adjustment and will be awarded to the highest bidder.

The union's spokesperson, Enric Aragonès, said that the Clínic has not been renewing certain contracts for some time because it is planning the operation to obtain "the maximum benefit."

The union called on the government to stop the auction, scheduled for October 8, and blamed it for being "responsible" for the auction. 

"If they do not stop it, the neighbors and the union will organize to stop this operation," Aragonès said. 

He also added that in a context of high rents and difficult access to public housing, it was "incoherent" to sell public assets.