Rental prices in Barcelona decrease by 6.4% after rent control measures, but challenges remain

The rental market in Barcelona has experienced a 6.4% decrease in prices one year after the implementation of rent control measures aimed at areas with high demand. Across other regions in Catalonia, where the same measures apply, the reduction stands at 3.7%. Despite these positive results, Sílvia Paneque, the Generalitat’s Minister for Territory, Housing, and Ecological Transition, cautioned that solving the housing issue is "a long and complex journey" that requires "intense and rigorous work."

Paneque shared these insights during the presentation of initial data, prepared by Incasòl, following the introduction of the rent cap on March 16, 2024, in 140 municipalities, including Barcelona. The Mayor of Barcelona, Jaume Collboni, and Minister of Housing and Urban Agenda, Isabel Rodríguez, also praised these findings and emphasized the collaboration between all three levels of government in tackling the housing crisis.

Between Q4 2021 and Q4 2023, rental prices in Catalonia surged by 15.7%, with Barcelona experiencing an even steeper rise of 22%. Paneque highlighted that addressing the housing problem is one of the most pressing concerns for Catalans, and collaborative efforts with the Ministry of Housing are essential. Collboni noted that rental prices in the city have been rising unsustainably for over a decade, but with recent policies, the "rules of the game" are changing. He reassured citizens that measures like these, and the elimination of tourist apartments by 2028, are permanent solutions, not temporary fixes.

Rodríguez also celebrated the decrease in rental prices, framing it as a critical step in regulating the market and responding to widespread public concern. She called on other regions in Spain to follow Catalonia's example and introduce similar regulatory measures.

In terms of rental agreements, data showed a positive trend, with new lease contracts increasing by 1,000 per month since the first declaration of tense housing markets. In total, 8,967 additional contracts were signed across Catalonia in 2024, with 5,819 in the 140 municipalities and 780 in Barcelona.

Temporary rental contracts also saw a notable rise in 2024, with 4,187 more agreements signed compared to the previous year, marking a 44.9% increase. These contracts, while necessary for some newcomers to the city, were identified as potential areas of fraud and require regulation.

Minister Rodríguez also urged property owners to reduce rent prices by 5% to qualify for a 90% reduction in income tax, benefiting approximately 460,000 property owners in Catalonia. She highlighted that such measures would help reduce rental costs and improve the housing market.

In response to these developments, Enric Aragonès, spokesperson for the Tenants’ Union, described the reduction in rental prices as "modest" and called for stricter regulations on temporary and room rental contracts. He criticized the celebratory tone of the government’s presentation, suggesting that the real issue of unaffordable rents is still not being adequately addressed. He further proposed a revision of the Urban Lease Act (LAU) to extend price regulation to more rental categories.

Aragonès also pointed to a conflict of interest between the real estate sector and the general public's need for affordable housing. He warned that while the Catalan government plans to build 50,000 new homes by 2030, 43,000 existing subsidized homes could lose their protected status.