Barcelona, the capital of Catalonia, has seen rents skyrocket in recent years, which is having a major impact on the lives of local residents. The Financial Times writes about it. Let's look at the reasons for this growth, its consequences, and the steps taken by the authorities to address the problem.

Reasons for the growth of rental rates

Over the past year, the rental rate per square meter in Barcelona has increased by 25%. Moreover, in the first quarter of 2023, this upward trend continued, and the average rent then reached a record 1,087 euros. These figures indicate a serious problem in the housing market.

One of the factors behind the rise in rents is the drastic reduction in supply in the real estate market. Comparing the beginning of 2019 and the beginning of 2023, we can see that the number of rental units on offer has decreased by 16,000. The decline in construction has also had an impact, causing an increase in demand for rental housing.

It is also worth considering that Barcelona attracts foreign professionals and investors. Every fifth resident of Barcelona at the moment is a foreigner. Sometimes they choose to buy real estate in Barcelona, which also puts additional pressure on the rental market.

The consequences of rising rents

Many locals are forced to move from Barcelona to the outskirts of the city or even to neighboring communities in search of more affordable housing. This affects the quality of life as well as the planning and organization of daily life.

Rising rents are also having a negative impact on the city's economy. Many households spend a large portion of their budget on housing, which can reduce their ability to invest in other areas such as consumer goods and services.

Search for solutions

It is important to note that in March 2022, the court declared unconstitutional the Catalan government's attempts to limit rental housing prices. However, the authorities do not stop looking for ways to solve the problem. The recently elected mayor, Socialist Jaume Collboni, has promised to introduce a ceiling on rent increases. This could help stabilize the market and provide residents with some protection against excessive price hikes.

However, solving the problem requires a comprehensive approach. New housing construction needs to be incentivized to balance supply and demand. It is also important to focus on supporting local residents by providing affordable and quality housing.