Spain’s Housing Law Triggers 25% Rental Drop
According to a study conducted by the National Federation of Real Estate Associations (FAI), the unintended consequences of the Right to Housing Law include a 7.3 per cent increase in typical rental prices in the region compared to the previous year. However, this increase is slightly below the national average of 9.2 per cent. The rental supply in Spain has also decreased by 30.57 per cent, though demand has improved at a more moderate 11.01 per cent, resulting in nearly double the rate of increase in the Region of Murcia. The Housing Law‘s regulatory changes have prompted landlords to tighten tenant requirements, raise rents, and consider shifting properties to the sales or tourist rental markets. The unintended consequences highlight the need for a balanced housing policy that addresses both supply and demand issues.
Tags : National Federation of Real Estate Associations rental supply Spain tenant requirements housing policy