Rent controls were imposed on Barcelona in mid-March but expectations of the policy were already helping to drive down the number of rental contracts signed, and increase rental prices in the first quarter.

The average rental price in Barcelona increased 9.8pc to 1,193 euros per month in the first quarter, according to data published by the Catalan regional Government. The price in terms of €/sqm/month rose 6pc, whilst asking prices rose by 12.4pc to 20.8€/sqm/month according to the property portal Idealista. You can see the trends in Barcelona rental prices illustrated in the chart above.

The number of rental contracts signed in Q1 declined by 9.8pc to 9,826, the equal-lowest level on record for a first quarter. You have to go back to Q1 2015 to see such a low level of rental contracts signed in Barcelona.

Rent controls were introduced on the 16th of March 2024, so it will be interesting to see what impact they have on the numbers for Q2 when they come out in a few months time. However, it is safe to say that the expectation of rent controls were already driving up prices and reducing contracts in the lead up to their introduction. How does that work?

If you are a landlord you push much harder on price if rent controls are coming in, whilst people looking to rent have an incentive to wait until rent controls are in place. One pushes up prices and the other pushes down contracts.

Will rent controls make housing more accessible in Barcelona, especially for the least well-off? Not a chance. The rental situation in Barcelona will only get worse thanks to local, regional and national policies that discourage rental investment. 

One good thing can be said about housing policy in Barcelona. It provides the world with an excellent case-study for the impact of rent controls and other political interventions in the housing market, from which other cities can draw the appropriate lessons if so inclined.

Check out the Barcelona rental market data page for all the latest market information.