What the Generalitat de Catalunya, led by Salvador Illa, and the Comuns of Jéssica Albiach have just agreed on has not been seen in Spain for years. We are looking at a reform of the Urban Planning Law that gives city councils the power to limit who can buy housing in areas where the situation is especially difficult.
Now, if we take a closer look at the measure, there are key questions that help explain what this is all about.
What does the reform actually involve?
Buying and selling homes is not prohibited, but conditions are placed on how they can be used.
In municipalities designated as “stressed areas”:
A) If you own five or more homes (what they call a “large holder”), you can only buy:
- one home, and only to live in yourself,
- or entire buildings, but you must rent out the flats at capped rents and respect existing contracts.
B) If you are a small property owner, you can buy as long as:
- you use the home as your primary residence,
- you buy it for close family members,
- or you rent it out within the price limits set by the Generalitat.
In addition, you are only allowed to have one second residence, and you cannot convert it into a tourist rental.
What is the idea behind this?
The Generalitat wants to stop speculative buying: those funds or individuals who purchase properties to keep them empty or sell them later at higher prices.
Above all, the aim is for housing to fulfill its social function and to increase affordable rental supply in a market where 90% of Catalans feel pressure.
Is it legally sustainable?
The Government requested legal studies and, at least on paper, the measure could fit within the Constitution if it meets three conditions:
- that it is temporary,
- that it only affects areas officially declared as stressed,
- that the restrictions are proportionate.
That said, it is almost certain that large property owners and investment funds will challenge the law in court.
Is this done in other countries?
It is not that unusual. Similar mechanisms exist in Singapore, Canada, and the Netherlands, although the rules and the strictness of the limitations vary from place to place.
In Spain, this would be the first time a regional government introduces this type of restriction into its own urban planning law.
What are the economic risks?
- Real estate investment could decline.
- The new housing market could slow down.
- There will be more litigation.
- City councils may struggle to monitor everything.
- And some will surely look for ways to circumvent the rules.
Too much regulation can scare off market operators and reduce supply.
And the potential benefits?
- It could increase the supply of rent-controlled housing.
- There would be fewer empty homes held purely for speculation.
- Private property would move closer to the social role many defend.
- Public housing policies would gain strength.
If implemented properly and not turned into a permanent rule, it could ease pressure in the most affected areas.
Conclusion
What the Government is proposing is a strong intervention in the real estate market, driven by social pressure and soaring housing prices.
It is not a total ban, but a way of redefining what property is for in problematic areas. Technically, it is a selective intervention with a powerful political and social background.
Its success will depend on how city councils manage it, how the market reacts, and whether the courts uphold it.
At its core, more than a revolution, this is a large-scale regulatory experiment. If they manage to balance legal certainty and social objectives, other regions may follow suit. If not, it could backfire, worsening supply or driving investors away.
Prez, M. et al. (2026) La Generalitat Proh, El Mundo.
Available at: https://www.elmundo.es/economia/vivienda/2026/02/19/6996c77be4d4d876518b4571.html
(Accessed: 20 February 2026).
