In recent months, the Spanish real estate sector has undergone significant changes due to new regulations and policy proposals aimed at tackling the housing crisis and boosting the market. At aPorperties, as leaders and experts in the luxury real estate market, we share with you all the new developments that are currently on the table.
Land Law in the process of being unblocked
The Spanish Government is working to unblock the Land Law, a key regulation that seeks to streamline urban development across the country. The aim is to facilitate the generation of land, essential for the construction of housing, hospitals, logistics centres and other infrastructure. An agreement is expected to be reached with the Popular Party before the end of the year to implement this law, considered one of the biggest demands of the real estate sector.
Source: Murbalands
Tax proposals for non-EU buyers
In response to the housing crisis, the Prime Minister, Pedro Sánchez, has proposed increasing to 100% the tax rate for the purchase of homes by non-resident non-EU nationals. This measure aims to curb speculation and alleviate the housing shortage. In 2023, non-EU non-residents bought 27,000 properties in Spain, mostly for speculation. The proposal has raised concerns among Britons and Americans, who could see their plans to buy holiday homes in Spain affected.
Source: ElHuffPost
Call for a state pact for housing
The Association of Developers and Builders of Spain (APCEspaña) has called on political parties for a state pact on housing and urban planning to improve access to affordable housing. They criticise measures such as the creation of a Public Housing Company and a ban on non-EU nationals buying, arguing that they do not address the real problem and could be detrimental to the economy. APCEspaña proposes speeding up urban developments and providing legal certainty to encourage housing construction.
Source: Cinco Días
Impact of the 30% rule in Barcelona
In Barcelona, six years after the implementation of the urban planning rule requiring 30% of new housing to be social housing, the construction of free-priced housing has decreased significantly. This legislation has shifted the activity of developers to the outskirts of the city, where this restriction does not apply. Mayor Jaume Collboni has promised to review the regulation, although he has yet to reach a consensus.
Source: El País
Debate on the Housing Law
The Housing Law, passed almost a year and a half ago, continues to generate debate. The price per square metre has risen by 8.6% year-on-year to 2,176 euros per square metre, and rents have increased by 10.2% in one year. The application of the law depends on the autonomous communities, and Catalonia is the only one that has declared areas with a stressed real estate market, regulating the price of rent through the Reference Price Index. However, supply has fallen by 17% in the areas where the regulation is applied.
Source: EPE
These initiatives and debates reflect the complexity of the real estate market situation in Spain and the search for effective solutions to guarantee access to decent and affordable housing for all citizens.