Since January 2026, new regulations have come into force in Catalonia that are reshaping the rental housing market. Not only long-term, but also short-term leases and the rental of individual rooms are now strictly regulated. Regional authorities have decided it’s time to bring order to a previously loosely governed sector and have imposed price caps on all types of rentals except those intended for tourists.
From now on, any rental contract—regardless of its duration—is considered to be for permanent residence unless the owner can provide documentary evidence to the contrary. This change has particularly affected large cities like Barcelona, where medium-term rentals were a lifeline for students, visiting professionals, and foreigners. Homeowners will now have to justify short-term leases, or else face price ceilings and additional inspections.
What has changed
The law requires that seasonal rental agreements specify the intended purpose of the stay and include supporting documentation. If the rental is not for a classic holiday or vacation, but for reasons such as work, study, or medical treatment, these contracts are now subject to the same price limits and conditions set out by the Ley de Arrendamientos Urbanos (LAU).
As a result, even if a property is rented out for purposes other than permanent residency and is not related to tourism, all rent control measures still apply. This also covers room rentals: the amount the landlord receives for each room must not exceed the total rent for the entire apartment. So, attempts to bypass the restrictions by splitting flats into rooms are now pointless.
Market under pressure
The Catalan authorities make no secret of the fact that the goal of these changes is to make housing more affordable and to protect tenants from sharp price hikes. To this end, a special registry of large property owners has been created, contract monitoring has been tightened, and inspectors now have the status of public officials. In addition, new urban development projects are now required to allocate more land for social housing.
However, despite official statements about a drop in average rental prices, statistics show mixed results. In Barcelona, for example, the average rent on new contracts has indeed dropped by almost 9% over the past year. But if you look at the cost per square meter, it is actually increasing, while the average size of rental apartments is shrinking. In other words, flats are getting smaller but the price per meter is going up.
Barcelona as an example
Barcelona has become something of a testing ground for new regulations. Authorities here were the first to introduce strict rental caps, which were later extended to hundreds of municipalities across Catalunya. Other regions soon followed, including the Basque Country, Navarra, and Galicia.
However, Barcelona’s success in lowering rental prices has been less clear-cut than officials had hoped. Official data shows that the average size of rental apartments in the city has hit its lowest point in nine years. This means tenants are forced to accept smaller homes in order to stay within the new limits.
Unexpected consequences
While authorities report victories, experts point out that the rental market is becoming increasingly difficult for both sides. Landlords are looking for ways to bypass the restrictions, while tenants face a shrinking supply and tougher competition for smaller apartments. As a result, despite an official drop in average rental prices, real housing affordability for many is still uncertain.
The situation is especially acute in Barcelona, where short-term rentals of several months have been popular among students and professionals. Now, many risk being left without options if they can’t provide documents proving the purpose of their temporary stay.
