Alphavalue / Divancons | On Friday, the Government reached an agreement with ERC and Bildu on the Housing Law which, among other measures, eliminates the CPI as a reference index for the annual update of rental contracts and sets a cap on rent increases of +3% in 2024 (which joins the +2% in 2023 already approved), extends the declaration of the so-called stressed areas and lowers the limit for being considered a large landlord from 10 to 5 homes. On the other hand, BBVA Research forecasts that housing transactions will fall by around -30% in 2023, due to lower economic growth, both nationally and globally, the rise in interest rates and the reduction in savings accumulated during the pandemic.
Spanish Housing Law: end of CPI as reference index for annual update of rental contracts
