The regulation of Spain’s rental market has been a central focus of housing policies promoted by the government in recent years. A shortage of supply in major cities has led to sustained price increases, making access to rental housing difficult for those with limited incomes. One of the measures implemented has been price caps, which have impacted the investment landscape.
According to Inviertis, a platform dedicated to real estate investment in Spain for already rented properties, these regulations have significantly affected regions like Catalonia. This has prompted some investment funds to rethink their strategies, even opting to sell properties. However, purchasing rented apartments or properties for rental remains a popular strategy, offering returns of 6% in large cities and up to 8% in smaller areas, solidifying real estate as a secure investment.
Looking ahead to 2025, the outlook appears promising for investors. Inviertis anticipates over 10% growth in real estate investment in Spain, driven by controlled inflation and declining interest rates—factors that are revitalizing confidence in the sector.
The company also projects a more than 5% increase in housing prices this year, fueled by robust demand and limited supply. Within this context, the "living" segment (residential real estate) is expected to lead investment, capturing 30–35% of the total, underscoring growing interest in residential assets.
It’s important to remember that price caps only apply to high-pressure municipalities. Investment in rental properties remains highly profitable in less saturated areas. Regulation presents challenges, but also opportunities for investors who adapt and focus on high-demand segments with growth potential, states Rebeca Pérez, CEO and founder of Inviertis.
Projections for 2025 highlight that, despite regulatory challenges, Spain’s real estate market continues to attract investors seeking to capitalize on an evolving market.