The Government declares 131 new localities in Catalonia as tensioned zones

You have probably already read about the limitation of rental prices in the tensioned market areas in Catalonia, a subject we already talked about a few months ago.

Now, today we put it in the spotlight again. Why? Last October 9, 2024, the Secretary of State for Housing and Urban Agenda announced an important update: 131 new localities are added to the 140 that already had this classification.

Catalonia has 271 municipalities in which rental prices are limited

Living in a tensioned market area – and in accordance with Law 12/2023 on the Right to Housing – means that local administrations can control rental prices, with the aim of avoiding disproportionate rises in rents, using the price of the previous contract as a reference.

However, for an area to be declared tense, two key criteria must be met:

1. The cost of housing must exceed 30% of the income of an average family in the area.
2. Property values must have grown more than three points above the Consumer Price Index (CPI) in the last five years.

The recent Resolution TER/2402/2024, published in the Official State Gazette (BOE) formalizes this expansion of tensioned zones in Catalonia, which already affects more than 90% of the territory’s population, as can be seen in this image:

Contracts affected by the regulation of tensioned zones in Catalonia

As of March 16, 2024, all new contracts signed in these stressed areas must comply with the established price limitations.

On the other hand, in locations that do not fall within this classification, prices are freely adjusted according to market supply and demand.

This is how the regulations are applied depending on the type of property

Depending on whether they are small or large holders, the regulations establish different rules:

• Small holders: if the property is already rented, the new contract must maintain the previous price, with a possible increase of up to 3%. There are exceptions that allow an increase of up to 10% if improvements have been made to reduce energy consumption or significant renovations, or if the contract is of long duration (minimum 10 years).

• Homes not rented in the last five years: the contract must respect the reference index established for the area.

• Large tenants: according to Resolution TER/2408/2024, large tenants are considered to be those who own five or more properties in the same stressed area and must always adhere to the price limits established by the reference index.

Consult the rental reference index of the tensioned zones in Catalonia

If you want to know the reference price of a property located in one of the tensioned zones in Catalonia, you can access the portal of the Ministry of Housing and Urban Agenda, https://www.mivau.gob.es.

By entering the data of the property, the system will provide you with a price range within which the rent should be located.

Tax benefits for small landlords

To balance the price restrictions, small landlords can access certain tax benefits:

1. 90% reduction if the new rent is 5% lower than in the previous contract.
2. A 70% discount if rented for the first time or to tenants under 35 years of age, or to public or non-profit entities.
3. A deduction of up to 60% if improvements or rehabilitations have been made in the last two years.

Manage the rental of your property with KM2 Real Estate Services

In KM2 Real Estate Services we are aware that this regulation complicates the management of the properties by the owners.

For this reason, if you need advice to rent your property, our sales department will propose a strategic marketing plan to carry out all the necessary procedures in accordance with current legislation.

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