From January 2024, new legislative measures significantly affecting the rental housing market have come into force in Spain. These changes are aimed at stabilising prices, improving conditions for tenants and preventing speculative rent increases, especially in cities with high demand, such as Barcelona.
rates, especially in high-demand cities such as Barcelona.
Key innovations:
Limiting rent increases In 2024, landlords are allowed to raise rents by no more than 3 per cent per year, even if the contract includes an inflation-based adjustment. Previously, rent increases were adjusted to the Consumer Price Index (IPC), which often resulted in significant price fluctuations. In 2025, a new index will be introduced to make the adjustment process more predictable and stable.
Designation of ‘high demand zones’ Local authorities can now declare certain areas as ‘high demand zones’ if rents or mortgage costs exceed 30 per cent of household income, or if house price growth has exceeded inflation by more than 3 per cent in the last five years. In such zones, additional restrictions are placed on landlords to curb further price increases.
In such zones, additional restrictions are placed on landlords to curb further price increases. Criteria for ‘large landlords’ The definition of a ‘large landlord’ has changed in 2024: now, if an owner has five or more properties (instead of the previous ten), they are subject to tighter restrictions on rent growth.
Criteria for ‘large landlords’ In 2024, the definition of a ‘large landlord’ has changed: now, if an owner has five or more properties (instead of the previous ten), they are subject to stricter restrictions on rent increases.This is particularly relevant to Barcelona, where there is a higher than average concentration of residential properties with large landlords.
Impact of the changes on the rental market These measures are designed to improve rental conditions and play an important role in tackling affordable housing in major cities such as Barcelona and Madrid. Lawmakers expect the new rules to help reduce the financial burden on tenants, creating a more predictable and stable rental environment. In practice, however, the results remain uncertain: the effectiveness of these measures depends on their local implementation and the reaction of the market - tenants and landlords.