Spain’s Housing Law Triggers 25% Rental Drop in Murcia

THE Region of Murcia has seen a significant 25 per cent drop in its rental property supply since the introduction of the Housing Law in May. This decline in rental availability has been exacerbated by a surge in demand, which is growing at double the national rate, causing real estate agents to raise concerns about rising prices.

Unintended Consequences of the Right to Housing Law

According to a study conducted by the National Federation of Real Estate Associations (FAI), the unintended consequences of the Right to Housing Law include a 7.3 per cent increase in typical rental prices in the region compared to the previous year. However, this increase is slightly below the national average of 9.2 per cent. The rental supply in Spain has also decreased by 30.57 per cent, though demand has improved at a more moderate 11.01 per cent, resulting in nearly double the rate of increase in the Region of Murcia.

Rising Demand vs. Decreasing Supply

The Housing Law‘s regulatory changes have prompted landlords to tighten tenant requirements, raise rents, and consider shifting properties to the sales or tourist rental markets. The unintended consequences highlight the need for a balanced housing policy that addresses both supply and demand issues.

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