Investors who buy housing to rent flee from Barcelona to Madrid

Related news

The number of investors who buy housing to rent, on average, represents 21% of the total rent in Spain. In the case of Madrid, this percentage stands at 28%. Well above Barcelona, ​​where it remains at 16%. “In the last three or four years the number of this type of investors in Barcelona has dropped a lot“says Lazaro Cubero, Director of the Analysis department of Tecnocasa.

PIn other words, it is bad news for the rental market in Barcelona when the Catalan rental price control law has passed a year ago. “It will affect the park in the long term.e rental housing, as it will be less, “he adds.

It is true that the law does not affect those who buy a home for this purpose. But people who have money and can buy in Barcelona have stopped doing so. “This effect does not occur in Madrid or Seville“, clarifies Lázaro Cubero.

It is about ciudades where prices are freely agreed between the parties. “La law is not showing the results it sought with its approval “, underlines Ferran Font, director of Pisos.com studies.

As in other European cities, the measure has had the opposite effect to that desired, reducing the supply of what already exists and significantly reducing investment in new housing “, adds Daniel Cuervo, general secretary of APCEspaña (Association of Promoters Builders of Spain).

penalty law

In May 2020, the rental housing portfolio began to rise throughout Spain. Specifically, until December it did so 70%. In Barcelona, ​​that percentage was 100%. That was due to named as pandemic effect. But in 2021, as of June, this portfolio is decreasing.

Thus, and according to Idealista, the number of housings offergivess on your portal in the city of Barcelona it has been reduced by 42% during the month of September compared to the figures for the same month of the previous year. A decrease of 10,900 homes.

Percentage similar to that harvested in Pisos.com. “In the last year there has been a rebound effect in which a 40% drop in the available rental offer has been recorded“, indicates its director of Studies. Too a slimmed down the number of contracts signed.

“This law has not been aimed at allowing more families to have access to rent. If this had been the case, measures would have been worked to create or enhance the offer. On the contrary, has been a penalizing law to punish the owners. Let’s not forget that the vast majority are private owners “, states José Ramón Zurdo, General Director of the Rental Negotiating Agency (ANA). A reality that has resulted in individuals or companies having closed their homes to rent or have opted for sell them.

Poner buffers

The law Catalan what does it is put caps onl starting price. Nevertheless, the discount in Barcelona is 4.2%, while in Madrid it is 5.5%, where there are no such stops. “This is so because of the market itself, not because of the legislation”, clarifies the director of Analysis of Tecnocasa.

The reality is that prices have fallen significantly in Catalonia. Specifically, and according to Tecnocasa, 9.9% in the city of Barcelona. But this percentage is similar to that of other capitals such as Madrid or Valencia. In the case of Seville, this decrease was 8.8%, while in Malaga it was 6.6%. The only exception is Zaragoza, which has maintained prices.

“The law has had its effect but, at the be occurring in other cities, it is not attributable. In Madrid the law is not and the numbers are similar “, highlights Lázaro Cubero. Therefore, we are dealing with an issue of Change of market cycle.

The market recovered in 2015 and now it’s time to correct. When crossing the pandemic, the same it has been important. In Barcelona city, at the beginning of 2020, prices had already started to fall before the arrival of the norm. This is reflected in the data of the Generalitat.

Tax incentives

Between the solutions that should be raised to lower prices and, incidentally, that the percentage of investors who buy to rent, José Ramón Zurdo points out: “We must increase the supply of private housing, for example, fiscally incentivizing both private owners and companies“.

From the ANA they are also committed to better regulating tourist rental, limiting it to homes that comply with local and regional legislation. Thus, they would increase the supply of traditional rental housing. And prices would drop.

“The government of Catalonia, instead of penalizing homeowners to try to look good with their electorate, should work to increase the supply of public housing for families who cannot access the private market on equal terms”, sustains José Ramón Zurdo. And concludes: “The private rental sector is not there to cover or support, as some claim, the shortcomings of the public sector due to the lack of social rental housing “.

Reference-www.elespanol.com

Leave a Comment