Barcelona declared as a stressed housing market zone

If you have been following us for some time, you probably remember some of our last articles in which we addressed issues related to the Housing Law in Spain, passed in May 2023

What are the new developments? Barcelona has been declared a stressed housing market zone, which, if approved, will lead to the implementation of measures to prevent rent increases.

Barcelona stressed housing market zone

The city’s new mayor, Jaume Collboni, signed a decree to declare Barcelona a stressed zone, in order to guarantee citizens’ access to a fundamental right.

Its aim is to protect access to housing in the city’s 73 neighborhoods and to put a stop to the rising prices affecting the Catalan capital.

What is a stressed zone?

The areas designated as stressed areas are those that meet at least one of these characteristics:

• The average house price exceeds 30% of the average income of the area
• .The price of the property has increased more than 3 percentage points above the CPI in the last five years.

According to the economic newspaper El Economista, the City of Barcelona satisfies both conditions. Residents spend 36% of their income on mortgage payments, and the growth in the price of buying or renting a property has exceeded the CPI by 6.5 points.

Definition of large holder

As stated in the Housing Law, the autonomous communities may choose to reduce from ten to five the minimum number of properties that an owner – whether an individual or a legal entity – must own in a stressed area in order to be classified as a large holder.

So far, such reduction has not yet been implemented and those who own more than ten properties continue to be considered large holders.

Public information period

On June 21, 2023, the public information period began in the 140 municipalities of Catalonia that meet the requirements to be declared a stressed area.

Different entities such as the professional associations API (Real Estate Agents) or Property Administrators, the Chamber of Property, the city councils and the Metropolitan Area of Barcelona (AMB) have presented their allegations, questioning the methodology and the sources of the data used.

At this moment, the review and response to these observations is pending. The final resolution will be notified to the Ministry of Transport, Mobility and Urban Agenda, who will have the final authority for approval.

Do you need advice on any issue related to the real estate market? You are in the right place.

At KM2 Real Estate Services we understand the concerns that the Housing Law may generate among homeowners.

Thanks to our extensive expertise in Barcelona and Madrid we can help you, advise you and take care of all the necessary steps.

Do not hesitate to contact our team of professionals in our real estate agency in Barcelona or Madrid, we look forward to meeting you!