90% of Catalonia’s population lives in rent-controlled zones – and this is just the beginning of a war between politicians and investors.

The regional government is preparing a new law that will allow municipalities to prohibit the purchase of apartments not for personal residence. The idea sounds noble: fighting speculators. In fact, it is a blow to those who buy old houses, repair them and sell them. It is these investors who renew the housing stock when the state fails.

The paradox is that there are practically no speculators in Catalonia. High taxes, strict regulation, hostile rhetoric are not a paradise for those looking for quick profits. This is a great way to discourage honest investors.

More recent: the authorities have expanded the definition of “large landlord”. Now, any owner of five apartments in the region falls into this category - even if it's three neighbors who inherited a modest building worth €100,000 each. The result is predictable: small landlords are leaving the market, housing supply is shrinking, prices are rising.

Politicians vow to solve the affordable housing crisis, but each new law makes investments riskier and less profitable. It is difficult to imagine a more effective way to make things worse.

Source: Spanish Property Insight