Overview of the housing index approaches in tension zones
In the tension zones identified by the housing ministry, where purchase and rental prices are exceptionally high as defined by housing law, the index is built around a range that has a minimum and a maximum. This depends on the local area and the characteristics of the residence. The approach clashes with the model backed by the Generalitat, which currently runs the only regional effort to cap rents in 140 municipalities including Barcelona. After attempts to reach a consensus with the housing minister, Ester Capella, the Catalan minister for Territory, concluded that the central government’s method—without overlaying the Catalan model and set to take effect in ten days—would prevent any price reductions. The central government contends that caps will drive prices down by roughly half in cities like Barcelona, given that Catalonia is the sole autonomous community moving forward with a fixed cap while others do not.
What data feed the index?
The ministry’s index relies on housing price data largely provided by the Tax Agency, the Cadastre, the National Statistics Institute, the Bank of Spain, and property registrars, totaling around 2.5 million records. The Generalitat’s system, by contrast, uses data from rental deposits reported to Incasòl and from property chambers. The 140 tension zones remain in place under the central government’s framework, regardless of the regional system in use.
How does it work?
The housing ministry’s index sets a maximum and minimum range for a given area based on the dwelling’s features. The presence of a parking space, an elevator, or recent renovations can shift the range. This element helps determine whether a rent or sale price is considered speculative. The coverage includes homes in tension zones with surfaces between 30 and 150 square meters, while new apartments or those that underwent full rehabilitation in the past five years are excluded. The index is updated annually. The ministry emphasizes that its figures will lie well below the prices listed on rental portals. For example, a Barcelona apartment on València Street in the Eixample advertised at 1,600 euros monthly might be capped at 984 euros by the ministry’s index. Another unit on Madrazo Street advertised at 1,172 euros could be reduced to 847 euros by the index.
What constitutes a tense zone?
To declare a zone tense, a regional government must meet at least one of two conditions outlined in the housing law: either the combined cost of mortgage or rent, plus basic utilities and essentials, exceeds 30% of the average income or typical household rent in that area; or housing purchase or rent prices have risen by at least three percentage points more than the regional consumer price index over the last five years. A tense zone declaration remains valid for three years and can be extended yearly if the triggering conditions persist.
What did the Generalitat propose?
The Generalitat’s Department of Territory proposed overlaying its model on top of the housing ministry’s framework to avoid conflicts from having two different indices. The idea was that without the Catalan index, which is price-fixed, the regional model would sit within the lower and upper bounds of the national index, or that the regional metric would be used. If the national range is 900 to 1,200 euros and the Catalan cap is 910, the Catalan figure would apply. If that reference lies outside the national range, the closest national bound would be used. Officials say the regional approach has functioned with an initial set of 2,500 samples and a second set of 23,000. The plan would apply in the 140 municipalities using the central government’s criteria. Catalonia argues that the central method, using a fixed range rather than a price reference, could cause large disparities for two homes with similar attributes in many scenarios—differences that may exceed 45 percent.
What effects does the index have and when will it apply?
For small property owners, the ministry’s index is informational. For large owners, typically those with five to ten dwellings depending on the region, the index becomes binding in the tense zones. The rule also applies to homes left vacant for five years running. The ministry has posted the index for public viewing on its website. A public consultation period of ten working days will safeguard legal certainty, and it will not be published in the official state bulletin until about mid-month. If the timelines are met, the new regime would take effect the following day.