The National Federation of Real Estate Associations (FAI) has warned that the validation of Royal Decree-law 29, known as the “Maricarmen Decree,” can deepen the reduction in the supply of long-term residential rentals and lead to a drop of between 25% and 30% in the number of transactions in the coming months.
The organization has expressed its concern about the approval of this rule in the Permanent Standing Committee of the Congress and has emphasized that, “far from easing tension” in the rental market, it will foreseeably reduce the available housing stock in major cities and provincial capitals.
The president of FAI, José María Alfaro, has described the validation as “a worrying piece of news for the people and families who are looking for a home to rent.” He has said that in recent weeks they are receiving “a constant trickle of landlords” who, given the proximity of the update, renewal or expiration of their contracts, are considering leaving the rental market.
“The measure is absolutely counterproductive, as is already being seen in the current stock of housing available to rent,” Alfaro stressed.
Withdrawal of homes and stalled transactions
The federation has pointed out that the mere announcement of the measures included in the housing decrees already generated a reaction among small property owners, according to a quick study prepared based on responses from more than 600 real estate agencies in the main cities and provincial capitals.
According to that report, 88.9% of the agencies had detected incidents in rentals associated with regulatory changes, while 11.1% said they would continue with their operations without alterations.
Among the most frequent consequences, 78.1% of real estate firms pointed to the withdrawal of properties from regular long-term residential rentals; 72.4% mentioned a slowdown in contract signings, and 56.6% indicated a shift of homes toward the purchase-and-sale market. In addition, 38.9% observed a diversion of properties toward other rental formulas, such as seasonal rentals or rentals by the room.
Taken together, the first data collected by FAI prior to the decree’s validation recorded 2,067 homes removed from traditional renting, 1,224 moved to purchase and sale, and 944 diverted to alternative lease modalities. These figures add up to 4,235 properties that have left or been diverted from residential renting, to which 1,523 blocked signatures are added, raising the total number of affected operations to 5,758.