Catalonia’s rent cap leaves 10% fewer new leases in two years

Catalonia recorded 9.8% fewer new rental contracts in the second quarter of 2026 than in the same period of 2024, the Generalitat said on Monday, two years after regional rent caps took effect. Average rents were still higher than at the start of the policy, while the government cited other measures as evidence of market restraint.

Fewer new contracts, higher rents

The number of new leases fell from 29,311 to 26,449 across the region. The decline was 9.3% in municipalities designated as stressed, 1.2% in Barcelona and 16% in non-stressed municipalities, which account for about a tenth of transactions. Compared with a year earlier, new contracts were essentially flat, edging up 0.1% in Catalonia and in stressed areas.

The average monthly rent for new Catalan contracts reached €877.81 in the second quarter, up 6.7% from 2024 and 2.7% year on year. In Barcelona, the average was about €1,140; the Generalitat’s figures put the increase at 0.8% since 2024 and 0.5% over the year. The figures track deposits lodged with the Catalan Land Institute (Incasòl).

The caps began on 16 March 2024 and cover Barcelona and 301 other municipalities. The administration estimates that rents in regulated areas are 8.9% to 10.6% lower than they would have been without the limits. It also says the number of active rental contracts has risen, reaching more than 850,000 homes, and that the stock grew by about 2,000 homes over two years. Those are government estimates and do not erase the fall in new leases.

Seasonal lets and enforcement

Seasonal rental contracts fell 40.2% year on year in the second quarter, according to the Generalitat’s analysis. A separate law regulating prices for seasonal and room rentals took effect in December 2025. Housing minister Sílvia Paneque warned that some seasonal flats may be shifting to room-by-room lets, whose combined rent cannot exceed the regulated whole-flat rent.

The Generalitat says it has opened 45 sanction proceedings since August, with proposed fines totalling €1.3 million, and carried out 600 inspections. Its discipline directorate, created in August, has 50 inspectors and aims to reach 100. Paneque said proceedings take time because the system includes extensive safeguards. The government also announced three €30,000 penalties against large landlords in July.

Paneque argues the cap has not reduced the overall housing supply but has slowed turnover; she said active contracts increased by 2,512 in the second quarter. The rental sector, meanwhile, has warned that regulation could divert homes to sale, and Expansión reported a €45 million drop in built-to-rent investment in Catalonia last year. Paneque has also said the cap alone cannot resolve the housing crisis without a substantial increase in supply.

Source: Expansión, elDiario.es and 20minutos.