The Catalan Government has gone wrong with its decision to regulate rental prices with the aim of making them cheaper. It has achieved the opposite effect: that they rise more than in the rest of Spain.
Thus, after the approval of the law on urgent measures in the field of rent containment, rental prices in the city of Barcelona have increased by 3.1 percent this year, while in other capitals such as Madrid they have fallen by 2.7 percent. In the rest of Spain they fell 4.5 percent.
With this evolution “the power of self-regulation of the lease has been demonstrated”, points out Ferran Font, director of studios at piso.com, for whom the new regulation “is not effective”.
Neither Anna Puigdevall, general director of the Association of Real Estate Agents of Catalonia, is in favor of this law and considers that “it is better to give incentives than to prohibit”.
15.4 euros per square meter
The rise in rents in Barcelona has meant that the price per square meter is around 15.4 euros, above the 14.6 euros in Madrid and the 10.6 euros in the rest of Spain.
Analysts blame this rise on the fact that price regulation has slowed the supply of rental homes and “a shortage of supply, higher prices.”
To which has been added, according to Francisco Iñareta, Idealista spokesperson, that since the summer, with the announcement of the return to universities, the end of many ERTE and the return of tourism, “the offer has progressively decreased and This reduction causes prices to rise and end the year marking increases “.
Ciutat Vella, the most expensive district
The rise in rents has been generalized in all Barcelona districts and the greatest escalation has occurred in Ciutat Vella, with 17.6 percent, and where the rent per square meter is paid at 18.6 euros.
It is followed by Sant Martí, with an 8.9 percent increase and a cost per square meter of 15.6 euros, and Eixample, with an increase of 6.7 percent, reaching 16 euros per square meter.
The cheapest district is Nou Barris, where you pay at 12.3 euros per square meter.
As for the rest of the Catalan capitals, Tarragona has experienced a 6.9 percent rise in income, Lleida 2.6 percent and in Girona prices have fallen 0.7 percent.
Lower house prices
The rent ceiling has slowed down the interest in investing in housing in Catalonia, with the consequent reduction in prices.
According to Idealista data, the cost of housing in the city of Barcelona has fallen by 1.9 percent in the last 12 months, to stand at 3,932 euros per square meter, while in Madrid it rose 0.5 percent , up to 3,700 euros per square meter.
As regards the rest of Spain, the increase was 2.8 percent, with the square meter at 1,829 euros.
Forecasts for 2022
Regarding the behavior that rental prices will have next year, Iñareta points out that it will depend on the evolution of the offer.
“If it continues to decline, we will see how prices grow gradually”, so it is considered “vitally important that all measures taken in terms of rent are aimed at emerging new homes on the market.”