Business · Economy · 1 day ago
Spanish property firms face uncertainty over housing and data centre rules
Spain’s property companies are facing uncertainty as housing and energy rules become political issues ahead of an early election on November 29.
The government has approved measures that cap rents and pause some evictions.
Colonial SFL and Merlin Properties focus mainly on offices, but changes to property rules can still affect their plans and share prices.
Both companies’ shares gave up early gains during election week and ended it close to where they started.
Merlin is also investing in data centres, with three operating and 14 in development.
A planned decree would restrict data centre construction and require the facilities’ power supply to be based on renewable energy, partly to protect households and industry from higher electricity costs.
The uncertainty has already coincided with a 10% fall in Merlin’s shares in September and the postponement of energy company Ignis’s planned stock market listing.
The sources say the data centre measure is expected to be approved in the coming weeks.
Spanish property firms face uncertainty over housing controls and proposed rules for data centres.
The Council of Ministers approved housing decrees that include rent caps and a moratorium on evictions.
A proposed data-centre decree would restrict construction and is intended to ensure renewable energy supplies and limit pressure on electricity bills.
Merlin Properties shares fell 10% in September after news of the proposed measure.
An early election, scheduled for 29 November, may keep housing at the centre of political debate.
- Who
- Spanish property firms, including Colonial SFL and Merlin Properties.
- What
- Firms face regulatory uncertainty over housing rules and proposed restrictions on data centres.
- When
- The article was published on 10 October 2026; the early election is scheduled for 29 November.
- Where
- Spain.
- Why
- Housing decrees and a proposed data-centre measure could affect property firms and their projects.
This story does not have two clearly opposing sides.
Some of the large listed companies have been especially affected in their share price and performance since the approval of the Royal Decree, given the possibility that new royal decrees may be added to some of the activities they operate.
The call for early elections will probably keep housing at the centre of political debate and may add some regulatory volatility to the sector.
Greater uncertainty can lead to projects being postponed.
Merlin Properties shares fell 10% after news that a measure to regulate data centres was being prepared.
The Council of Ministers approved the housing decrees, including rent caps and a moratorium on evictions.
Cinco Días published its report on property firms facing regulatory and interest-rate uncertainty.
Spain's early election is scheduled to take place.
- Colonial SFL student residences
- Three planned complexes in Madrid valued at €1 billion
- Merlin Properties data centres
- Three operational and 14 in development
- Merlin Properties share fall
- 10% in September
- Proposed data-centre measure
- Seeks renewable energy supply and to avoid higher electricity bills for households and industry
- Early election
- Scheduled for 29 November
Sources
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