Is There Rent Control in Spain? 

The answer depends on the specific region and type of rental agreement. In February 2024, Spain introduced a new Housing Act to make housing more affordable and accessible, particularly for renters. Spain has rent control for new contracts in 2024, with a national increase cap of 3%. However, regions can designate zones with high housing demand as “stressed areas” and implement stricter controls, like Barcelona’s cap based on previous rental prices. Continue the reading to aid your move to Spain and for more information on new renting rules in Spain, the banning of renting for the season, whether it’s wise to buy property in Spain with the recent scenario and more.

Property Prices in Spain In 2024

After answering “Is There Rent Control in Spain?”, we can jump to the housing market offers field. Predicting property prices in Spain for potential buyers involves a mix of cautious optimism and regional considerations. While most experts anticipate a modest increase of 1.5% to 3%, this is slower growth compared to 2023 and might not even outpace inflation. Regional variations are expected, with major cities like Barcelona and Madrid potentially seeing minor bumps, while coastal areas and islands with limited supply could experience higher growth. It’s important to remember that economic factors like rising interest rates and a potential slowdown could dampen price increases. Again, while there are some price increases, it’s likely 2024 won’t be a dramatic jump. Regional variations and economic factors will play a significant role in determining the final cost.

Is Spain in a Housing Crisis? 

Spain is currently experiencing a significant housing crisis driven by several factors. Rising rental prices and limited availability of rental properties have made it increasingly difficult for many families to find affordable housing, particularly in major cities like Madrid and Barcelona. In response, the Spanish government has implemented a series of measures, including a new housing law that caps annual rent increases at 3% and designates certain areas as “tense housing markets” with additional price controls​. Additionally, the government is freeing up around 50,000 homes from the state-controlled “bad bank” (SAREB) to be rented at affordable prices​.

Furthermore, Spain has ended its Golden Visa program, which allowed wealthy non-EU citizens to gain residency through significant property investments. This move aims to curb property speculation and make housing more accessible to locals​​. Despite these efforts, challenges remain due to rising mortgage rates and economic factors affecting housing affordability and availability across the country.​

Is it Wise to Buy Property in Spain? 

Spain’s property market offers a secure environment for expat investors in 2024. The scenario presents a robust legal framework and potential market stability. Spain’s projected economic growth provides a solid foundation. Transparent buying processes, openness to foreign investment, and a diverse property market cater to expats’ needs. Reputable organisations like BBVA Research predict continued market stability, potentially due to the Housing Act. A robust legal framework with clear ownership records ensures peace of mind. Expats benefit from a welcoming investment climate. Also, the rent control in Spain ensures tension attenuation since rents for new leases cannot exceed the price set in the last contract over the past five years, adjusted for the annual update percentage.

Can I Rent in Spain for a Year? 

Yes, you can rent in Spain for a year. Renting a property in Spain as a foreigner is quite feasible. You will need a valid rental contract, which is typically written and can be negotiated for the duration, often starting from 11-12 months, with an option to renew. To rent, you’ll generally need to provide a deposit equivalent to one month’s rent, proof of employment or income, personal references, and identification documents such as a passport. Rent prices vary significantly by location, with higher costs in major cities like Madrid and Barcelona, while more affordable options can be found in regions like Murcia or Asturias. It’s essential to review the rental agreement thoroughly to understand the terms regarding utilities, repairs, and rent increases, which are usually tied to Spain’s consumer price index (CPI). Additionally, ensure to rent through reputable platforms and only send money with a signed agreement to avoid scams.​

Housing Act Implemented in Spain

The act implemented in 2023 was strengthened to ensure more affordable housing. Rent increases are capped at 2% in 2023 and 3% in 2024, with a new rental index planned for 2025. Areas with high demand and limited supply (“stressed areas”) see stricter regulations like rent caps based on previous prices, while tax breaks incentivise landlords to offer lower rents or rent to young people.

Housing Act Implemented in Spain

The act implemented in 2023 was strengthened to ensure more affordable housing. Rent increases are capped at 2% in 2023 and 3% in 2024, with a new rental index planned for 2025. Areas with high demand and limited supply (“stressed areas”) see stricter regulations like rent caps based on previous prices, while tax breaks incentivise landlords to offer lower rents or rent to young people.

Finding a Home in Spain as an Expat

Even with rent control in Spain, finding a home as an expat requires proactive planning—research areas with lower rental pressure and longer-term contracts using online platforms and relocation agencies. The best address for you and your pocket can have different meanings. Wanting to be near the city centre might be suitable for transport and other practicalities, but it comes with higher prices. Choose wisely and always research the movement and options of public transportation in the area. Start your search early, especially during peak seasons, and consider a relocation agent to navigate the Spanish housing market’s legalities, language barriers, and cultural nuances.

Moving to Spain: Reducing the Stress

Relocating internationally can be daunting due to extensive paperwork and logistics, but there are effective ways to manage the stress. Create a checklist to break down the relocation process into smaller, manageable steps. Conduct thorough online research to familiarise yourself with Spanish regulations, visa requirements, and cultural norms. Hiring a reputable removal company can ease the burden by handling the mandatory steps. At VanOne International Movers, we take the heavy loads for you by handling customs clearance, door-to-door collection, delivery, and any other requirements related to international relocation. Contact us today and be prepared for your new life in Spain.