Expansion of the list of cities with rent control
Since late October, several cities in Spain have been officially designated as areas with a tense rental housing market. The list now includes Bilbao, Vitoria-Gasteiz, and the municipalities of Astigarraga and Usurbil in the province of Gipuzkoa. This decision has been published in the government bulletin and will take effect in the coming weeks.
The introduction of new regulations is aimed at curbing the sharp rise in rental prices that has been observed in these regions in recent years. From now on, a special index based on data from previous contracts will be applied to new rental agreements in these cities. This measure is intended to prevent unreasonable price hikes and provide greater predictability for tenants.
Regulation mechanism and its key features
According to current legislation, the status of a tense housing market area allows local authorities to limit the maximum rent. An index system is used for this, taking into account tax data on rental prices in each district. Owners of large real estate portfolios are required to comply with these restrictions when signing new contracts.
In addition, municipalities included in the list must implement programs to increase the supply of affordable housing within three years. Tax incentives are offered to property owners who agree to lower rental prices. The new rules also limit the ability to raise rents on new contracts if the property was previously rented out.
Impact on tenants and property owners
Authorities note that these measures are designed not only to protect tenants’ interests but also to support small landlords who comply with the established rules. In their view, such regulations help create a more stable and transparent rental market, reducing risks for both sides.
Currently, more than 300 municipalities in four autonomous communities in Spain have been granted the status of areas with a strained housing market. Along with the Basque Country (Euskadi), the list includes cities and towns in Catalonia, Navarre, and Galicia. The list is expected to grow soon, as the housing affordability issue remains one of the most pressing challenges in many regions of the country.
