Business · Companies · 2 hrs ago

Housing rules are delaying investment in Spain, industry leaders warn

Housing rules are delaying investment in Spain, industry leaders warn

Property investors and developers say new housing rules are delaying decisions across Spain’s rental market.

The government approved two housing decrees on 6 October, and some measures are already in force.

These include extending certain rental contracts by two years and restricting some purchases by companies and large property owners.

Investors say uncertainty is holding back funding, new projects and rental contracts, even as some major international investors remain interested in Spain.

Industry leaders warn that fewer developments and available homes could worsen the country’s housing shortage, where household growth is outpacing homebuilding.

Investors are waiting for the decrees’ legislative progress and the 29 November elections before deciding what to do next.

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What people are saying

Javier Rodríguez-HerediaManaging partner of Azora
I am convinced this will fall under its own weight.
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Miguel Ángel PeñaChief executive of Grupo Lar
The approval of the decrees in a devious manner has affected the investment market brutally.
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Rosa GallegoChief executive of Q-Living
A perfect storm.
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against the problem-solvers
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