As seasoned professionals in the management of Barcelona short-term rentals, we have been closely monitoring the latest developments regarding high-density residential areas where rental restrictions will be imposed. The recent regulation, which came into effect on March 16, 2024, imposes rent limits on new contracts, gradually extending to existing ones due for renewal. However, housing intended for monthly rental apartments is exempt from these regulations, as they cater to longer stays lasting less than a year. Below, we look into this issue to grasp its implications.
WHAT IS A STRESSED OR HIGH-DENSITY AREA?
A stressed or high-density residential market area is where there’s not enough affordable housing available, leading to legal measures to control rent prices. The Ministry of Housing has listed the municipalities considered stressed areas on its website. Catalonia was the first community to ask to be on this list.
WHAT ARE THE STRESSED/HIGH-DENSITY AREAS IN CATALONIA?
In Catalonia, there are 140 municipalities designated as stressed areas, including the provincial capitals: Barcelona, Girona, Tarragona, and Lleida. It is estimated that 6.2 million people live in the 140 municipalities on the list, i.e. 80.6% of the total population.
WHAT LIMITS APPLY TO RENT IN STRESSED/HIGH-DENSITY AREAS?
In these areas, the rental price for new contracts cannot surpass the price of the previous contract that has been in effect over the last five years.
WHAT MEASURES MUST BE TAKEN BY PROPERTY HOLDERS WITH MULTIPLE PROPERTIES?
According to the Housing Law, a major property holder is defined as someone who owns more than ten properties (excluding garages or storage rooms), although each autonomous community can establish its own criteria. In Catalonia, a major property holder is defined as an individual who owns five or more residential properties. To determine the rental prices for their properties, major property holders must follow the reference index set by the Ministry of Housing.
HOW LONG WILL THIS REGULATION REMAIN IN EFFECT?
The regulation will be in force for three years but may be extended if the conditions of insufficient affordable housing persist. Therefore, the stressed areas of Catalonia will retain this designation at least until March 16, 2027.
CAN BARCELONA MONTHLY RENTAL APARTMENTS BE LOCATED IN A HIGH-DENSITY AREA?
Yes, the temporary rental arrangement by months is not subject to the measures outlined in the Housing Law. If you own a rented apartment in Barcelona and lease it for periods ranging from one to eleven months per year, you are exempt from the rent restrictions, even if your property is located in a stressed/high-density area.
At Lodging Management, we are seasoned professionals in the Barcelona short-term rentals market, staying up to date on all developments in housing and market regulations. With two decades of hands-on experience managing monthly rental apartments as well, we are recognized experts in the field. Whether you’re considering entering this market or have questions about tenant sourcing, pricing strategies, or property maintenance, we’re here to provide expert guidance and support.
