Spanish housing sector warns of rental supply drop due to new decrees

The Spanish housing and real estate sectors are warning that new government housing decrees are causing significant legal uncertainty, leading to a potential reduction in rental supply. In Asturias, real estate professionals report that some owners are already withdrawing properties from the rental market or opting to sell them instead to avoid regulatory instability.

Industry groups, including the Association of Developers and Builders of Spain (APCE), anticipate that developers may shift new projects intended for rent toward sale to mitigate risks. The Association of Owners (Asval) has expressed concern that the measures could undermine constitutional principles and destroy supply. This comes amid projections from the Bank of Spain suggesting a significant housing deficit that could exceed one million units by 2028.

The decrees, which are awaiting validation in Congress, include measures to strengthen contract stability through successive extensions. While stakeholders acknowledge the need to protect vulnerable households, they argue that the responsibility should fall on public administrations rather than private owners.