The Association of Real Estate Consultants (ACI) has asked the Spanish Government for alternative formulas to the regulation of rental housing prices, as it may cause the supply to fall.
Specifically, the large consulting firms (BNP Paribas Real Estate, Catella, CBRE Spain, Cushman & Wakefield, JLL, Knight Frank and Savills Aguirre Newman) have said that this type of interventionist measures proposed by the next Housing Law can achieve the opposite effect, by not encouraging the rental market and being able to cause a reduction of up to 30% in the offer.
The ACI has pointed out that “the intervention that the autonomous communities can make on rental prices in stressed areas, as established by the regulations, if definitively approved, is not emerging as an adequate measure, as it could generate uncertainty in the owners and aggravate the problems of access to housing, as has happened in recent cases”.
In this sense, Ricardo Martí-Fluxá, president of the association, has indicated that “we have seen how the limitation of prices of housing for rent that was carried out in cities such as Berlin, Paris or closer, in Barcelona, has produced an effect otherwise and has withdrawn the offer ”.
Increase the rental housing supply
On the other hand, the leading consulting firms have shown themselves willing to collaborate with the Administration in increasing the public housing stock and promoting other policies to promote rent in the free market. "Based on our experience, to help the rental market, we believe that the solution comes by increasing the offer," said Martí-Fluxá.
As 85% of the housing stock is in the hands of individuals, according to the Bank of Spain, for the ACI it is necessary to "establish measures that give them guarantee, legal security and certainty so that they decide to rent." Furthermore, "the definition of 'build to rent' urban areas is decisive as one of the solutions to the rental market, as it implies an increase in the supply that can result in more affordable rents".
Finally, in order to boost the real estate market, the consulting firms have positively valued the launch of the program approved by the Administration to help the construction of social rental housing in energy efficient buildings and the rehabilitation of housing.