Landlords are already changing course. Just two days after Spain’s latest housing decrees, leading developers say owners are pulling homes from the rental market. Xavier Vilajoana, president of the APCE, says the new rules have spooked many owners, who now plan to sell instead of rent. "In 48 hours we have already received many inputs on this. Those who planned to put homes on the rental market tomorrow will now sell them," Vilajoana said. Developers feel boxed in.
The APCE’s frustration runs deep. The government, led by Pedro Sánchez, has pushed through two housing decrees, but developers say the real problem remains unaddressed: the Ley del Suelo reform is still stalled. Thousands of homes remain stuck, and Congress has failed four times to pass the law. Projects cannot move forward, many intended for affordable housing. Vilajoana put it plainly: "There have been four attempts to get this law into Congress, all unsuccessful. All parties have failed to agree on two articles that would unblock projects, 40% to 50% of which are for protected housing."
Developers say the government’s plan misses the mark. Vilajoana argues that the decrees affect only a small slice of the market: corporate landlords control just 4%. Most owners are individuals, who now face new risks and greater uncertainty. "People do not want problems and will get rid of them," he warned. Private owners may leave the rental sector for good.
One case has put a face to the debate. Maricarmen Abascal, 87, was evicted from her Madrid home, sparking outrage. Vilajoana called it a "system dysfunction in every sense." He says it is not the norm and warned against using individual tragedies for political purposes. Vilajoana argues that public administrations, not private landlords, should provide a "social shield." Catalonia’s government set up a 25 million euro emergency fund to buy homes at risk of eviction, a step Vilajoana welcomed. Still, he says owners need fair compensation, which must be "seriously quantified."
Developers accuse the government of passing the buck, leaving regional authorities with the problem but without clear rules or enough resources. Vilajoana’s warning is blunt: as long as legal uncertainty persists and compensation rules remain vague, rental supply will keep shrinking. The APCE says rushed laws and anti-business rhetoric only make matters worse.
Maricarmen Abascal’s story is not over. Earlier reports suggest she may return home under new rental terms. For the wider market, but, the APCE’s outlook is grim. Unless lawmakers break the deadlock on land reform and provide legal certainty, Spain’s rental sector will shrink further. The government’s new decrees, intended to help, could accelerate the shortage. Owners now see the market as too risky, and many are ready to walk away.
