A survey conducted by the American analytics firm Harris Interactive for the French company Masteos, which, with Toluna, specializes in rental apartment purchase consultancy, found that 72% of Spaniards are interested in investing in rental assets, particularly among ages 25 to 50. Spain emerges as the country with the strongest appetite in the entire European Union, and the survey indicates it is preferred over other savings options such as bank accounts or the stock market.
The Masteos study reports that 17% have already invested in housing for rental income, with another 12% planning to add such investments in the next twelve months. Yet 45% express interest without any immediate plan to invest, with the primary barrier being a lack of financial resources.
The Housing Law’s initial measure, aimed at small property owners, defines large property ownership as owning five or ten properties, a threshold to be determined by each autonomous community. This threshold will shape who is subject to new obligations under the act.
One new duty is that landlords will not be able to collect property fees directly from tenants. This rule tends to affect small owners more than large ones, since larger portfolios often employ their own multi-person marketing teams to manage rents.
On price regulation, communities enforcing the act and seeking to declare high-demand areas may cap rents. However, Madrid and Andalusia have already signaled they will not implement rent caps in those zones. Catalonia may pursue rent regulation, while the Valencian Community’s approach will depend on the political coalition after the elections on May 28.
As owners age, there could be extended or extraordinary contract terms if tenants are vulnerable, alongside annual renewals that consider inflation. In addition, before the final text of the new law is published, adjustments are expected in the current tax incentive framework to ensure that those who reduce their taxable income can still benefit.
Beatriz Toribio, chief executive of Masteos, notes that the central question is whether the Housing Act will influence the willingness of individuals to buy rental homes. She observes that for small and medium savers, the profitability of rental properties remains attractive, and the need to shelter savings from inflation continues to be a factor. Nevertheless, the new regulations raise questions, may slow transactions, and create some uncertainty. [Cited: Harris Interactive, Masteos, Toluna, 2023].
Financing increase does not quench appetite
Beatriz Toribio highlights that the typical client Masteos advises for rental purchases does not always need to secure a mortgage to formalize the investment, while others pursue options that show strong solvency ratios. This indicates a diverse set of funding paths among potential investors.
The vice president of the French firm states that many clients consider investing in vacation rentals in addition to traditional long-term rentals and room-based arrangements. Positive investors also expand their portfolios by acquiring assets outside their primary residence and delegating property management to third-party operators. This trend suggests a growing interest in diversified rent-generating assets across different regions and property types.