Agents and groups concerned over Catalonia seasonal rental rules

“A serious distortion of the current legal framework that would negatively impact a market segment essential for mobility, employment, academic activity and social life in Catalonia” – this is how several organisations have responded to the decree regulating seasonal and room rentals, recently approved by the Catalan Parliament.

According to the Catalan government, the decree stipulates that seasonal and room rentals will be subject to the same rent caps as long-term residential tenancies. In addition, in areas designated as having a stressed housing market, the mandatory classification of homes as social housing will remain in force for the duration of that situation.

Reacting to the measure, Carles Sala, spokesperson for the Association of Real Estate Agents (API) of Catalonia, struck a cautious tone. He stressed the need to await the final text of the regulation and, in particular, the opinion of the Council of Statutory Guarantees, to which the measure is expected to be submitted.

“If it is approved in the terms outlined by the sponsoring parliamentary groups, we will be looking at a restatement of the principles contained in Decree Law 6/2024,” Sala commented. “This would equate seasonal rental contracts with leases for primary residences, subjecting them to the same rent restrictions – even when they serve professional, healthcare, academic or employment-related purposes – and redefine the concept of seasonal rentals as currently established under the Urban Leases Act (LAU).”

Interventions and conceptual errors

For Leonardo Cromstedt, president of Keller Williams Spain-Andorra, the seasonal rental regulation in Catalonia, though well-intentioned, “represents a significant intervention in the market that will inevitably lead to adverse consequences. As an example, we’ve already seen that since the introduction of rental price controls in Catalonia, the supply of rental properties has dropped by an average of 15%, with even steeper declines in cities like Girona (–20%) and Tarragona (–16%), all while having minimal effect on rental prices.”

In Cromstedt’s view, government intervention in the housing market tends to discourage private investment, which in turn further reduces the available supply. At the same time, it pushes remaining landlords towards alternative markets such as short-term holiday lets or even prompts them to sell, thereby worsening the structural shortage of long-term rental housing.

Pixabay

Meanwhile, Carles Sala of the API argues that equating seasonal rental contracts with long-term residential leases is a fundamental conceptual error: “Seasonal rentals operate under a different logic and require a distinct legal framework. Once again, the legislator appears to be drafting laws without adequately considering a significant portion of social and economic reality, instead responding to a dominant discourse with a strong ideological leaning.”

The new law governing seasonal rentals in Catalonia clearly defines the conditions under which such properties can be let. It also introduces the establishment of a dedicated body of housing inspectors “tasked with ensuring compliance with the regulations, identifying cases of fraud and imposing sanctions,” notes Leonardo Cromstedt, president of Keller Williams Spain-Andorra.

“Dubious legal security”

The Keller Williams expert highlights that the legal certainty surrounding this initiative is highly questionable. Previous regulations were struck down by the Constitutional Court due to jurisdictional conflicts between the Catalan and Spanish governments. “The current measures could face similar challenges. Regardless of the eventual outcome, what is clear is that this regulation is already generating uncertainty among property owners and investors, which will deter investment and push it toward alternative uses or unregulated markets.”

Meanwhile, the API argue that this is yet another example of short-lived housing legislation in Catalonia. The expert also points out that more than half of the regulations passed in this area have been partially or fully annulled by the Constitutional Court. “This regulation, in its current form, appears to meet all the criteria for following the same path as its predecessors, potentially facing challenges from the Constitutional Court,” they assert.

“Serious impact”

Various associations within the sector, including Foment del Treball, the Association of Property Developers of Catalonia (APCE), the Association of Rental Property Owners (ASVAL), the Association of Real Estate Agents of Catalonia (AIC), the Association of Property Managers of Barcelona and Lleida (CAFBL), the Official Association of Real Estate Agents of Barcelona (COAPI), and the Barcelona Chamber of Urban Property, have issued a joint statement expressing concern over the proposed extension of rent controls to short- and medium-term rental contracts.

According to these associations, "If implemented, this measure would severely distort the current legal framework and negatively impact a market segment that is crucial for mobility, employment, academic and social life in Catalonia."

As previously explained, temporary rentals – typically governed by the Urban Leasing Law (LAU) as contracts for non-residential use – serve very specific purposes, such as providing housing for displaced professionals, students, researchers, people in transitional housing or those involved in international mobility. "These types of rentals, generally lasting no more than 12 months, are not an alternative to permanent housing but an essential complement to a dynamic and open society."

The associations argue that extending price controls to these types of contracts would amount to legal overreach and represent a counterproductive decision from both an economic and social standpoint. Article 17 of the LAU clearly stipulates that rental price limitations can only be applied to contracts for primary residences. Real estate experts further note that subjecting these rentals to the same legal treatment would not only create legal uncertainty but could also threaten the continued availability of this type of rental market in Catalonia.