The imminent change in the real estate sector in Catalonia
Less than a week before the Spanish government’s new price index that will regulate rents in Catalonia comes into effect, the real estate sector is preparing to face this change.
Reactions from the real estate sector
The main real estate portals, such as Idealista, Fotocasa and Pisos.com, as well as the Real Estate Agents (API), have agreed in their role as intermediaries, stating that they will inform the owners of the index, but will not have authority to change the prices nor will they be penalized for having them above the price set by the index.
Index impact on new contracts and stressed areas
The new index envisages a reduction in prices for new contracts for large tenants or for homes that have not been rented for the last 5 years. In addition, no new rental contract in a stressed area may rise above 3%.
Reactions and doubts from the real estate sector
There is concern and confusion in the real estate sector regarding the lack of institutional coordination between Catalan and Spanish institutions, as well as doubts about the methodology for making the index and possible exceptions.
Application of the index and responsibilities
There is uncertainty about who should ensure enforcement and how penalties and price controls will be enforced. Sources from the Ministry of Housing assure that this competence belongs to the communities, while sources from the Generalitat point out that they are still studying how to apply the sanctions and the control of price regulation.
Challenges for real estate portals
Real estate portals such as Pisos.com and Fotocasa express doubts about how to apply the law and what their responsibility is in relation to the index, since they do not have access to certain information about the owners and the type of housing.
