Current rent control measures in Catalonia primarily benefit tenants with greater financial resources. This creates a paradoxical situation where regulations, designed to improve affordability, are instead squeezing out the very people they aim to help. This is the central conclusion of an annual report by real estate group Amat Immobiliaris, which analyses its property data across the Barcelona metropolitan area.
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The report suggests that in a market defined by a severe lack of supply, price caps create intense competition for the few available properties. This environment ultimately favours applicants with higher incomes who more easily pass landlord solvency checks. ‘Whoever capitalises on the regulation is the one with more purchasing power,’ stated Guifré Homedes, general director of Amat Immobiliaris, during the report’s presentation. ‘If a flat is listed for a regulated price of 1,000 euros, it is more likely that someone who could afford to pay 1,200 euros will secure it.’
This finding comes as the regional government continues to enforce and extend rent caps in designated high-demand areas. Although the struggle for affordable housing has a long history in the city, dating back to events like the 1931 Barcelona rent strike, the report – first detailed by Catalan newspaper Ara – argues that the current approach distorts the market rather than solving the underlying issue: a critical shortage of available homes.
A Shrinking and Polarising Market
The core problem, according to Amat Immobiliaris, is an acute lack of rental supply, which shows no signs of recovery. The available stock is also becoming “polarised,” with a noticeable shift towards larger, and therefore more expensive, properties. This trend has pushed up the average rent in the company’s portfolio despite the price caps.
Data from the report shows the average rent per square metre rose by 8.9% over the past year, from €15.09 to €16.45. The average absolute monthly rent also increased by 7.1%, from €1,384 to €1,482. This trend compounds a lack of new construction for the rental market. The report notes that fewer developers are willing to invest in build-to-rent projects in Catalonia, meaning the current supply consists almost entirely of rotating existing stock.
While the Catalan government’s ‘Pla 50.000’ aims to promote affordable rental housing through public-private partnerships, Homedes opined that it is unlikely to produce “palpable results” until at least 2030, leaving the market to grapple with the supply crisis for years to come.
Young and Local Tenants Squeezed Out
This market dynamic heavily impacts younger and local residents. For the second consecutive year, the report registered a decrease in rental contracts signed by young people. ‘The young tenant has it very difficult,’ Homedes affirmed, noting that the typical local renter is now between 40 and 60 years old.
Meanwhile, the demographic profile of tenants is becoming increasingly international. Foreign nationals signed 58% of the contracts managed by Amat in Barcelona, a substantial leap from the 15% they represented before the pandemic. In affluent suburbs like Sant Cugat del Vallès and Sant Just Desvern, foreigners now account for 48% of new tenants, creating a rental landscape that is increasingly inaccessible for many locals.
The report also identifies a distorting effect where market pressures force unwilling decisions. Some landlords who would prefer to rent out their properties are choosing to sell instead, while some tenants who would rather rent are reluctantly buying homes to secure stable housing.
The Rise of Seasonal Rentals
Amid the challenges of the long-term rental market, the report highlights a significant pivot by investors towards seasonal rentals. This segment is not subject to the same price controls, making it a more attractive option for property owners. There is no sign of weakening demand, driven largely by international students and medical professionals on temporary assignments.
This trend further underscores the internationalisation of the market, with foreigners signing 64% of all seasonal rental contracts managed by the firm. The growing importance of this market segment has become a political flashpoint, with the city’s leadership facing internal disagreements over how to regulate it, as previously reported by Barna.News.
Ultimately, the Amat Immobiliaris report paints a picture of a housing policy that, despite its intentions, is failing to provide relief for those most in need. By capping prices without sufficiently addressing the profound lack of supply, the regulations have inadvertently created a system where financial strength, rather than need, determines who secures a home.
