Spain’s Housing Law (Law 12/2023), introduced to control rent prices in so-called “stressed” areas, is showing signs of backfiring, at least in Catalonia. Instead of making renting easier, the new regulation appears to be discouraging new rental contracts altogether.
According to data from the Catalan government, only 27,716 new leases were signed in the first quarter of 2025, compared to 34,503 during the same period in 2024 — a 19.7% year-over-year drop, marking the lowest number of new contracts since before the pandemic.
The Numbers Behind the Decline
Across Catalonia’s 15 largest cities, new rental contracts fell by more than 21%.
In cities like L’Hospitalet de Llobregat and Terrassa, the drop is close to 30%.
In Barcelona alone, new lease signings are down 22% year-over-year.
While the law has slightly brought down prices (a 4.7% average reduction in rent), it has also significantly shrunk the supply of available rentals — a much more pressing issue for tenants.
Lower Prices, Fewer Options
Though one goal of the law was to reduce rent inflation, experts warn the drop in prices is largely the result of a frozen market, not improved affordability.
According to Carles Sala from COAPI, the price slowdown is real, but the rental market’s natural turnover is grinding to a halt. With fewer properties listed, people looking to rent simply have fewer options.
Unintended Consequences
Landlords pulling out: many property owners are choosing not to rent under the new capped rules.
Surge in short-term rentals: seasonal and tourist rentals are up 52%, used as a legal workaround.
Reduced mobility: existing tenants are staying put, fearful of not finding a new place.
Legal uncertainty: distrust is growing among both landlords and investors.
What This Means for Tenants
High competition: in Barcelona, each rental listing receives over 60 applications.
Tougher requirements: landlords now demand steady income, guarantees, or even multiple co-signers.
Vulnerable renters left out: young people, newcomers, and middle-income families struggle to access housing.
What the Sector Is Calling For
To fix the imbalance, housing experts are urging the government to:
Boost the rental supply, especially for long-term tenants.
Reinforce legal security for landlords and tenants alike.
Encourage public-private partnerships to increase access to affordable housing.
Relocating to Catalonia? Don’t Navigate This Alone
In a tightening and increasingly competitive rental market, expert support is more important than ever.
At Eres Relocation, we help companies, expats, and individuals make their move to Spain as smooth as possible:
Tailored home search support, even in high-demand “stressed” areas.
Assistance with residence permits, visa processes, and city registration.
Personal guidance in your language, designed for individuals and families alike.
Whether you’re relocating for work, family, or study, we’ll help you transition with confidence and ease.
👉 Thinking of moving to Spain for remote work? Learn how the country is becoming a top destination thanks to the Digital Nomad Visa.
For long-term or local property search, we also recommend our trusted partners at SOMOS — a modern, bilingual real estate agency that truly understands the Catalan market and the needs of international clients.
