RE Sector: New Laws Will Worsen Access to Housing

16 January 2020 – La Vanguardia

16 January 2020 – La Vanguardia

Property developers, estate agents, funds and the trade association are all in agreement. The new real estate legislation that La Generalitat and Town of Barcelona have introduced, as well as that being drafted by the new PSOE-Podemos coalition government, is going to worsen access to housing. Precisely the opposite of the authors’ intentions.

In Barcelona, the Town Hall now obliges property developers to allocate 30% of new developments to social housing. That measure alone has resulted in a 55% decrease in the number of new home starts.

Moreover, its effect is being further compounded by the fact that the prices of the remaining 70% (the private homes) are now more expensive, making them unaffordable for the average buyer.

The new central government’s plans to control rental prices have also been heavily criticised, for both their content and scope. Concha Osácar, founding partner of Azora, warned that many conservative investors, such as pension funds and insurance companies, will avoid investing in Spain unless they can be guaranteed legal certainty and security, something which all of these legislative changes severely undermines.

Original story: La Vanguardia (by Rosa Salvador)

Translation/Summary: Carmel Drake

Original Story: La Vanguardia

Translation/Summary: Carmel Drake

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