Spanish Rental Market Sees 30% Fewer Offers Amid New Housing Law

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8/5/2025

Spanish Rental Market Sees 30% Fewer Offers Amid New Housing Law

The Spanish rental market has experienced a significant shift with a 30% reduction in available properties since the introduction of the new Housing Law. The legislation implemented a 2% ceiling on rent increases, aiming to address soaring rental prices. However, the outcome has been quite the opposite of expectations, resulting in record-high property prices for both sales and rentals, coupled with a dwindling supply of housing options.


Many Spanish landlords have responded to the situation by shifting away from offering long-term rentals and instead favouring short-term rentals catering to tourists. This strategic move allows property owners to capitalize on the lucrative tourist market while circumventing the limitations of the new Housing Law. As of now, there are no clear indicators of a shift in this trend, which implies that rental prices are likely to continue their upward trajectory.


The new Housing Law, which aimed to stabilize and control rental prices, has unintentionally disrupted the long-term rental market in Spain. The reduction in housing supply, coupled with increasing property costs, poses challenges for those seeking affordable long-term rentals. This situation is expected to persist in the near future, further driving up rental prices and creating a challenging environment for prospective tenants.


The consequences of the new Housing Law in Spain, intended to curtail rental price increases, have led to unintended effects, including a sharp reduction in available long-term rentals. Property owners are shifting their focus towards short-term tourist rentals, contributing to the ongoing increase in rental prices. This shift highlights the need for ongoing policy adjustments to achieve the desired balance in the Spanish housing market.

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