flats

City council says results are "very satisfactory" while saving on official inspections and police involvement

New details emerge as Mossos d'Esquadra explain how two-year operation led to 58 arrests, including four gang leaders

Barcelona has the highest rent prices in Spain, with an average of 17.36 euros per square metre in the Catalan capital’s old town. In fact, 6 of the 10 most expensive cities for renting are in Catalonia, including Gavà, Sant Cugat, Sitges, Castelldefels and l’Hospitalet del Llobregat. The Catalan Government wants to put an end to “exaggerated” increases in rent prices and is drafting a new law that will set a recommend rental price for an initial 115 towns. Landlords who respect the recommended price could enjoy property tax cuts or receive grants to renovate flats. Similarly, towns will be able to penalise those that decide to rent their properties above the set price. The councils of Barcelona, Tarragona, Lleida and Girona welcomed the initiative and are prepared to study the introduction of tax reductions for landlords that rent below the recommended price.

In its first annual collection, a tax raised on banks and other financial institutions maintaining empty flats has generated €11.3 million. When it was first approved, the tax was only expected to raise €8 million. The revenue from the tax is a “very positive” first assessment according to Catalan Minister for Public Administration and Housing, Meritxell Borras. The revenue gained from taxing 198 institutions with flats that remained empty for two years or more will be used to purchase 260 properties for public housing in Catalonia. However, Borras is concerned that the tax will be “endangered” by potential interference by the government in state functions. 

Real estate continues its positive trend and is gradually leaving behind the crisis the sector went through between 2008 and 2014. Housing sales have grown in Catalonia for the 9^th consecutive month in annual terms. This week, the Spanish Statistics Institute (INE) released the sales figures for the month of June 2015 and they show an 8.15% growth in Catalonia compared to June last year. It is the best figure for the month of June since 2010. Previously-owned properties are leading the market by a clear margin, with only 15% of sales being new builds. In Spain as a whole, housing sales have already seen 10 consecutive months of growth. In June, they increased by 17% on last year’s figures, with 78.3% of the properties sold having been previously owned.

The City Council of the Catalan capital has announced it will remit 80% of the fine on tourist apartments with no licence located in Barcelona's Ciutat Vella district if the owners put the property up for social housing rent for a minimum of 3 years. Once this period is over, the owner will be able to extend the social rent or pay the remaining 20% of the fine. The City Council explained that the initiative is "a pilot test" in order "to start changing the city's tourist model", as tourists are too concentrated in some areas. This has created some friction with locals, mostly due to some visitors' wild street parties and to the rise in rent prices, as many properties have been transformed into tourist rentals, quite often without a licence. In this vein, the City Council will ask digital platforms such as Airbnb for the identification data of all their rentals in Barcelona. These platforms will be fined for each illegal flat on offer or if they refuse to issue the requested list.

The Catalan Government has presented a decree, pending approval "in the coming months," that will regulate up to eight types of tourist accommodations, including new types that until now were not contemplated by the law, like motorhome areas, casual Bed & Breakfasts and informal rentals. The decree is an effort to quell the rapid expansion of tourist accommodations in newer platforms – like the Internet service Airbnb – and bring already-existing establishments under control.  The Catalan Minister for Business and Employment, Felip Puig, said all establishments must be registered. For Bed&Breakfasts and Airbnb rentals (or similar platforms) its users must pay a tourist tax of 0.65€ in Barcelona and 0.45€ in the rest of Catalonia. In addition, the City Councils will determine which areas can be used for placement of accommodations.

The price of houses and apartments in Catalonia has now accumulated 4 consecutive quarters of annual increases, increasing by 1.8% between January and March 2015 compared to the same period in 2014, according to figures released on Tuesday by the Spanish Statistics Institute (INE). After 6 years of falling prices, housing prices have been on the rise since the first quarter of 2014, showing the sector's recovery from the financial crisis. However, despite the annual increases and overall positive figures, housing prices fell in quarterly terms, decreasing by 0.9% compared to the last quarter of 2014. As well as this, the number of housing units sold during last April in Catalonia grew by 13%. In Spain as a whole, housing prices increased by 1.5% in the first quarter of 2015 compared to the same period in 2014, with the number of housing sales in April growing by 9.4%.

House sales in Catalonia have recorded a double-digit growth rate in March compared to the same period last year, official data from the Spanish Statistics Institute (INE) has highlighted. The number of house sales was 4,334 units, which represents a 10.2% annual increase over March 2014 figures. So far, Catalonia has accumulated six consecutive months of positive annual rates for house sales, and all its provinces have followed this trend with the exception of Tarragona. In particular, Barcelona Province stands out with an above-the-average 15.66% annual increase. In Spain as a whole, the number of houses sold in March was 27,280 units, a 2.1% increase in annual terms and the 7^th consecutive month of positive annual rates.

The number of mortgages on homes in Catalonia registered a 32.4% increase in February compared to the same figure from February 2014. This annual increase strengthens an uninterrupted trend of 10 consecutive months of annual growth. This figure is particularly important taking into account that the crash of the construction and real estate sectors, as well as the lack of bank loans, were some of the main elements of the double economic crisis that affected Catalonia and the rest of Spain between 2008 and 2014. The recovery of the mortgage market is yet another indicator of a broader recovery of the real estate market and the overall economy, although its effects on some aspects of people's lives will still need time to be noticed, such as in the reduction of the high levels of unemployment.

The Catalan Government earned €41 million last year thanks to the tourist tax, which represents a 6.56% increase over the figures from 2013. Since this tax was created in November 2012 with the aim of increasing revenue for reducing public deficit and having greater resources for tourism promotion, €82.3 million has been collected. Catalonia has been increasing its number of foreign visitors over the last two years, posting record figures of 15.6 million in 2013 and 16.7 million in 2014. Tourists pay the tax, which ranges from €0.50 to €2.50 per night per person, in relation to the type of accommodation, and the location. The tax includes several exceptions, such as for children, and it is not paid on stays of over 7 nights.

In 72 municipalities with a high demand for housing, the Catalan Government and the affected town halls will be able to use a right of first refusal to buy flats and houses on sale that are now owned by financial entities as a result of home evictions carried out since April 2008. The measure will only be in place until 2021 in those 72 municipalities and the aim is to prevent investment funds from buying them solely for speculative purposes and not to rent them. The initiative comes after it was noticed that investment funds were buying a great number of empty flats from banks, who came to own them after the previous owners were unable to pay their mortgage during the years of economic crisis. The measure will be included in a decree that will enter into force immediately and is part of a wider plan to facilitate access to housing.

The average price of houses and flats in Catalonia was 2.2% higher at the end of 2014 than at the end of the previous year, according to the Spanish Statistics Institute (INE). At Spanish level, housing prices increased by 1.8% in 2014. It is the first time since 2007 that housing prices have increased both in Catalonia and Spain as a whole. In quarterly terms, the price of flats and houses in Catalonia increased by 0.6% between the end of September and end of December. At Spanish level, they increased by 0.2% in the same period. The recovery of the real estate market is a particularly strong indicator of the economic recovery in Catalonia and Spain, especially taking into account the collapse of the construction sector during the years of economic crisis.