Spain’s leading property developers predict a wave of rental homes will be sold off instead of leased after the government’s latest housing decrees. Industry leaders argue the new rules will shrink rental supply and stall affordable housing projects.
Landlords are already changing course. Just two days after Spain’s latest housing decrees, top developers say owners are pulling homes from the rental market. Xavier Vilajoana, president of the APCE, says the new rules have spooked many. Instead of renting, owners now plan to sell. "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. The mood is tense. 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 is still ignored. The Ley del Suelo reform remains stuck. Thousands of homes are frozen in limbo. Congress has failed four times to pass the law. Projects can’t move forward. Many of these homes are meant 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."
The Spanish government officially extended eviction protections for vulnerable tenants until 2030 and introduced automatic two-year lease renewals for contracts expiring before the end of 2028.
Developers say the government’s plan misses the mark. Vilajoana argues the decrees only hit a small slice of the market—just 4% controlled by corporate landlords. Most owners are individuals. They now face new risks and more uncertainty. "People do not want problems and will get rid of them," he warned. The message is clear. 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. Her story has sparked outrage. Vilajoana called it a "system dysfunction in every sense." But he says it’s not the norm. He warned against using single tragedies for politics. Vilajoana insists 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. Vilajoana called this a step forward. Still, he says owners need fair compensation. It must be "seriously quantified."
According to the official summary published in the BOE, the housing package is split into two separate legal acts: Royal Decree-Law 26/2026, which is already in force, and a second text on automatic lease renewals to be published separately. This confirms the government’s strategy to expedite urgent protections while continuing parliamentary debate on broader reforms.
Developers accuse the government of passing the buck. They say regional authorities are left with the mess, but no clear rules or enough resources. Vilajoana’s warning is blunt. As long as legal uncertainty drags on and compensation rules stay vague, rental supply will keep shrinking. The APCE says rushed laws and anti-business talk only make things worse. The crisis deepens.
Maricarmen Abascal’s story is not over. Earlier reports suggest she may return home under new rental terms. But for the wider market, the APCE’s outlook is grim. Unless lawmakers break the deadlock on land reform and give real legal certainty, Spain’s rental sector will shrink again. Tenants and developers both lose. The government’s new decrees, meant to help, could speed up the shortage. Owners now see the market as too risky. Many are ready to walk away.
