Application of the Limitation in 140 Municipalities of Catalonia
A new regulation limiting rental prices has recently entered into force in 140 municipalities in Catalonia, including towns such as Tremp and Sort. These areas are considered residential areas with market tensions according to the Department of Territory of the Generalitat de Catalunya, and are home to approximately 80% of the population.
Definition of Stressed Areas
Stressed areas are those where there has been a constant increase in rental prices in recent years, generating higher financial costs and a decrease in purchasing power for residents. In Catalonia, a total of 140 municipalities have been designated as stressed areas by the Government.
Regulation of Rental Prices
Under the new legislation, rents in new contracts cannot exceed the price of the previous contract for the last five years after the annual update. In addition, in the case of owners with multiple properties, the rental price cannot exceed the established reference index.
Grand Fork and Reference Index
A large holder is an entity with more than 10 properties or a built-up area of more than 1,500 square meters, including those with 5 or more properties in tight residential areas. The reference index is a public tool that provides an estimate of rental prices based on specific characteristics of the home.
Advice before signing a Rental Contract
It is essential to check whether the property is in a stressed area before signing a rental contract, as this can affect prices. If so, the price will depend on whether the owner is a large holder or not, with different pricing criteria in each case.
Other Information of Interest
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