Catalonia already applies the cap on rent prices

At the beginning of February we learned that – in accordance with the provisions of the Housing Law – Catalonia intended to impose a cap on rent prices. Well, according to what was announced in the Official State Bulletin (BOE), this regulation came into force on March 16, 2024.

What does it consist of, what is its period of application, who does it affect, let’s clear up all the questions!

The rental price benchmark index is already applied in Catalonia

The rental price benchmark defines the ceilings for rental costs in areas identified as being in high demand.

According to the Government, there are 140 Catalan localities inhabited by 6.2 million people – the equivalent of 80.6% of the total population – where this benchmark applies, provided that at least one of the following requirements is met:

1. The median home value exceeds 30% of the local median income.
2. The increase in property prices has exceeded the Consumer Price Index (CPI) by more than three percentage points over the last five years.

This strategy seeks to balance the relationship between housing supply and demand by promoting greater rental accessibility. It requires property owners to adapt their rates to a fairer margin.

Who is affected by this measure?

As we said, this measure affects the areas identified as stressed. However, it is important to consider the following scenarios, since not all rental housing within these areas will experience price changes.

• Tenants signing leases in stressed areas

Are subject to the index restrictions, unless the property was previously leased by an individual owner at a higher cost during the last five years. In these cases, such value may be retained.

• Owners considered large holders

Those with more than five urban properties – not counting storage rooms – or with a total built-up area exceeding 1,500 m², are obliged to follow the caps imposed by the index.

• Owners who offer for rent properties that have not been rented in the last five years or have never been rented at all

They must also set prices in accordance with the index restrictions.

How are the values set?

The determination of prices considers a gradation that takes into account the quality of the property. The owners have the power to set the price within an authorized range, based on various taxes of the property, such as:

• Area between 30 m² and 150 m².
• Energy efficiency.
• Date of construction.
• Level of maintenance.
• Existence or not of elevator.
• Availability of parking.
• Furnishings.
• Floor of the building.
• Access to common areas.
• Presence of swimming pools or recreational/sports facilities.
• Concierge, security or related services.
• Panoramic or attractive views.

Thus, the rental value may be higher depending on the superior condition and amenities of the property.

For example – according to the real estate portal Idealista – a studio in the Gracia district of Barcelona would be priced in a range of between 468.50 € and 670.51 €, compared to the current 1,020 €. In another instance, an apartment in C/ Mallorca, currently offered at €1,250, would see its price adjusted between €873.02 and €1,136.26.

Where can the rental price reference index be consulted?

On the website of the Ministry of Housing (https://serpavi.mivau.gob.es) using the cadastral reference or the map tool. Then it is necessary to provide the specific details of the property previously mentioned.

With this information, the system calculates a price range and offers the option to download a report.

What is the period of application of this measure?

The index was activated on March 16, 2024 and will be in effect for three years, with the possibility of extension if conditions persist.

Manage the rental of your property with KM2 Real Estate Services

In KM2 Real Estate Services we are aware that this regulation can generate complications in the management of the properties by the owners.

For this reason, we put our team of real estate experts at your disposal. If you need advice to rent your property, our commercial department will propose you a strategic plan to carry out all the necessary procedures according to the current legislation.

Do not hesitate to contact us for more information. You can also visit us at any of our real estate agencies in Barcelona and Madrid.