Mark StücklinTwelve months after Catalonia became the first and only Spanish region to universally apply rent caps under Spain’s new national housing law, preliminary data suggests limited success in curbing housing pressures. While average rents in regulated “stressed zones” have indeed fallen by 3.7%, the market itself seems to be grinding to a halt.
New figures from the regional government based on data from Incasòl — Catalonia’s public land and housing agency — show that the number of newly signed rental contracts has dropped significantly, especially in the city of Barcelona, the epicentre of the region’s housing crisis. Stakeholders from tenant unions to property owners agree on one thing: finding a reasonably priced flat remains as difficult as ever.
Rent prices drop, but availability dries up
According to Incasòl, average contractual rents in Catalonia’s 140 designated “stressed” municipalities fell from €911/month in Q1 2024 to €878/month in Q4. In Barcelona, rents dropped more steeply, by 6.4%, ending the year at an average of €1,117/month — still among the highest in Spain.
However, those gains come at a price: liquidity. Rental contract signings in these areas have plummeted. Across the designated municipalities, new rental agreements dropped 21% from Q1 to Q4 in 2024. In Barcelona, the number of contracts declined 17% in the three quarters following the introduction of the price caps.
Even more concerning, the balance between new leases and contract terminations is now at its weakest point since records began — excluding the COVID year. In 2024, Barcelona saw just 2,724 more rental contracts signed than ended, and 71% of that slim surplus came in the first quarter, before rent controls took effect.
Property owners say the rules are pushing flats off the market or into sales channels. “The market is stagnating,” said Òscar Gorgues, director of the Barcelona Chamber of Urban Property. “New rental supply is drying up, and much of it is going to the for-sale market instead.”
There is also a growing mismatch between recorded rental prices and asking prices, as illustrated by the next chart. This suggests that we are seeing a split market created by rent control. Contract rents are tamed by regulation, but asking rents reflect a shortage of available units and landlords trying to recoup value or navigate around the rules. It’s a classic tension in rent-regulated markets.
Policymakers hail the law as a success
Despite the slowdown, Spain’s Housing Minister Isabel Rodríguez and Catalan Housing Minister Sílvia Paneque defended the rent controls at a press conference in Barcelona on Friday. Speaking alongside the city’s mayor, Jaume Collboni, the trio declared the law a win for affordability.
“The rent caps are having a positive effect,” Rodríguez said, urging other Spanish regions — particularly those governed by the conservative Partido Popular — to adopt the law more widely.
Annual rental averages still rose slightly year-on-year due to a sharp uptick in early 2024 before the cap came into effect. In municipalities declared “stressed” in March 2024, average rent rose to €884.95/month for the year — up from €871.82 in 2023 and €811.76 in 2022. However, the quarterly trend points to a levelling-off or decline since then.
Seasonal rentals surge as workaround
With price caps placing pressure on standard rental contracts, landlords appear to be seeking alternatives. The number of seasonal rental listings — which aren’t currently subject to price controls — shot up by 45% across Catalonia last year.
The Catalan government has pledged to crack down on abuses within the seasonal market, promising tougher oversight and enforcement mechanisms. “Seasonal lets play a role, but we will actively investigate and penalise fraudulent use,” said Paneque.
Tenant groups remain sceptical. The Tenants’ Union (Sindicat de Llogateres) criticised the ongoing unaffordability in key cities and called for tighter regulation of seasonal leases, arguing that price caps without supply-side support are not solving the crisis. They plan to return to the streets with a national demonstration on 5 April.
Rental search now tougher than ever
Meanwhile, prospective tenants are finding themselves in a more competitive race for fewer listings. According to Idealista, now consulted by the Bank of Spain for housing data, around 54 potential tenants now compete for each available rental — up from 40 prior to the law.
“The rental market has become a word-of-mouth game,” said Carles Sala, spokesperson for Catalonia’s Association of Estate Agents. “Flats don’t even make it to the listing stage before they’re snapped up.”
Conclusion: control without supply is not enough
One year on, Catalonia’s rent caps are delivering modest relief in prices — but the persistent lack of supply, sluggish contract turnover, and shifting landlord strategies suggest the market is increasingly paralysed.
While policymakers celebrate headline figures, it’s becoming clear that rent control without a comprehensive plan to boost supply — particularly subsidised housing — may only offer temporary gains. Whether other regions will follow Catalonia’s lead depends on how the long-term effects unfold in an increasingly constrained rental landscape.
Take a deep dive into the figures for the Barcelona rental market.
