Economics
Spain Is Latest Battleground for Global Affordable Housing
- Government limits rent gains to inflation rate for five years
- Institutional owners face seven-year cap on raising rents
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The effort by Spain’s Socialist government to control apartment rents in one of the developed world’s more buoyant real estate markets is off to a rocky start.
In May, two months after imposing a battery of rent-suppression measures for new leases, rents rose at a 7.5% annual pace, according to property website Idealista.com, which supplies data to Spain’s central bank. That was an acceleration from 6.6% in March when the measures were enacted.