Real estate industry experts agree on this issue with the Housing Law, which is expected to be renewed. to approve next thursday congress of deputies will have the opposite effect of what is intended to be achieved by scaring investment. The Head of the Housing Observatory of the Polytechnic University and real estate agents in Valencia warn that measures such as limiting the rental price will result. decrease in current market supply As in Catalonia or in cities that limit rents like Paris and Berlin. Experts assure that the long-term solution includes building protected rental housing through public-private cooperation. One option is to build housing on public land with special promotion through concessions, as with some garages (the contractor uses the rent at a regulated price for several years and then the properties pass to the Administration).
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The main innovations brought by the rental law are as follows: Unlinks future increases in CPI (via a new index that will undercut increases in inflation); still a stop in stressful areas for new contracts (in which 74% of households in the province of Valencia belong); and set nNew safeguards against evictions. At the same time, the Government announced that Sareb (the real estate asset management company caused by the bursting of the real estate bubble) will be released in the residential rental market held.
Average price of a house of 70 square meters in Valencia already reached 1,500 euros. UPV Housing Observatory President Fernando Cos-Gayón agrees that the cost of rent is excessive, but doubts the effectiveness of the measures taken to stop the escalation. Cos-Gayón insists that the cap on rental prices “doesn’t work anywhere. It’s outrageous. Not possible with this measure. They shelved their struggle to lower rents.”
Fernando Cos-Gayón believes the solution is to promote subsidized housing on public lands through public-private cooperation. Vicente Díez, spokesperson for the Valencian Association of Realtors (API), agrees with Cos-Gayón that the stock of protected rental housing needs to be increased. “There is no solution in the short term. We believe that The inclusion of Sareb properties in the rental housing market will do something, but little. Land needs to be provided in order for rental housing to be built,” says Díez.
The API spokesperson emphasizes that it is possible to create a rental property supply in the Valencia metropolitan area. “We start from a very low park. One option is to make rental buildings on public lands through concessions. It is possible to give a concession to a project owner for x years, as with some parking lots, at an affordable maximum price. It’s all about increasing the stock of rental flats in the end.“, stresses Díez.
Insecurity
Nora García, president of the Association of Real Estate Companies of the Community of Valencia (Asicval), emphasizes that the Housing Act discourages investment. “70 percent of our clients are small savers with one or two apartments for rent. Apartments they inherited from their parents or purchased through labor and use their income in addition to their pension. Such measures encourage. putting properties up for sale because they create distrustGarcia says.
Major Spanish tourism companies have been pressing the government for months to introduce real regulation against the proliferation of illegal tourist agencies. In successive contacts with the executive, they demand state legislation that serves to enforce the regulations of autonomous communities and town halls that are de facto not complied with, to stop the new eruption in tourist-occupied housing (VUT). rented for days. Companies warn that traditional rental apartments are being handed over to tourist platforms like Airbnb on a large scale.
The lobby, which brings together the thirty largest companies in the industry (including major hotels such as Meliá, NH, Riu, Iberostar or Palladium), is pushing for the Government to take advantage of the Housing Act. proliferation of illegal bidding. Don’t hide now his “disappointment” And “wonder” because the proposed regulation, agreed between the partners of the Coalition Executive (PSOE and Unidas Podemos) and the ERC and EH Bildu, makes no mention of tourist rentals and warns of the consequences of the text that proceeds in this way.
“It is crucial that the Future Housing law does not exempt houses from tourist use. Otherwise, the spirit of the law to promote affordable rent will be strayed,” said José Luis Zoreda, Exceltur’s vice president, in a press conference. . The lobby believes that the price ceiling in city centers will encourage tourist rentals.