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HomeLatest NewsThe Housing Law threatens to expel 100,000 rental apartments from the market

The Housing Law threatens to expel 100,000 rental apartments from the market

Date: April 21, 2024 Time: 01:11:28

The problem of real estate supply in Spain is already one of the problems that most worries the agents of the sector and the population. There is a great demand for apartments for rent or for the sale of homes; however, the lack of land or high prices have caused an imbalance in the sector. Now a new report carried out by the real estate agent Tecnocasa in conjunction with the Pompeu Fabra University, ensures that the Housing Law approved a few months ago by the Government of Pedro Sánchez, could increase this inequality and the offer could be reduced by up to 11.7%. , making some 100,000 properties ‘disappear’ from the market.

The study ”Impact of the new Housing Law on the real estate rental offer” also details that the limit on rents in stressed areas (22%) and legal uncertainty (66.3%) could lead to “many owners to withdraw their properties from the rental market and look for other business options”. Likewise, once the current rental contract has ended, 7.7% of the owners who have participated in the study consider selling the home, while 4% are considering other options, such as leasing for use other than of housing.

The price of used housing until June stabilizes

The price of used housing in Spain stood at 2,377 euros per square meter in the first half of 2023, 0.21% more than the figures for the same period in 2022, which reflects a path of stability in the real estate market sale, according to the conclusions of the XXXVII ‘Report on the housing market’, also prepared by the Tecnocasa Group and the UPF.

Along these lines, the highest price up to June was in Barcelona, ​​where it reached 3,145 euros per square meter, while the lowest was in Talavera de la Reina (Toledo), with 651 euros per square meter. Madrid, for its part, reached 2,794 euros per square meter between January and June. Regarding the mortgage market, the average mortgage in the first six months of the year stood at 121,782 euros, 2.7% less compared to the import from a year ago, when it reached 125,186 euros.

Barcelona also had the highest mortgage amount up to June, specifically, it stood at 145,883 euros, followed by L’Hospitalet de Llobregat (135,788 euros) and Madrid (130,525 euros), while Malaga had the lowest amount (94,471 euro). Referring to the main risk indicators of a mortgage, the CEO of the Tecnocasa group, Paolo Boarini, has detailed that the evolution of these during the first half of the year shows “stability and is in line with the credit standards that the banks s apply the last years”.

Likewise, the real estate group has underlined that the ratio between the monthly mortgage payment and the income of the mortgagee was 35% in the semester analyzed, the maximum recommended to minimize the risk of non-payment of a mortgage and the highest percentage since 2011. Boarini has expressed the “important” change that mortgages have undergone in the last six months. In this sense, mixed interest rate mortgages more than doubled, from 14% in the first half of 2022 to 30% of the total in the same period of 2023, which reached 83% of the total in the first half of 2022, they now account for 51% of the mortgages granted in the first half of 2023.

Rents rise in Valencia, Barcelona and Madrid

The director of Analysis of the Tecnocasa group, Lázaro Cubero, has carried out in the presentation of the report a review of the rental market in Spain, in which he observes that it is increasing in the majority of the populations analyzed, highlighting Valencia (14.3%), Barcelona (11.9%) and Madrid (8.6%). Cubero has remarked that “the supply of rental housing has been reducing in recent years and that the new Housing Law will have an even greater impact on the reduction of the available supply.”

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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