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30th June 2022
The Government values extending the limitation of 2% increase in the renewal of rents
30th May 2022REAL ESTATE GROUP NEXUS, INFORMS
The Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez, has affirmed that the Government does not rule out the extension of the 2% limitation (now linked to the IGC) of rent increases in the updating of rental contracts, currently in Valid until June 30. Given the current situation in which inflation is still, she has defended that it "makes sense" for the Government to maintain measures to mitigate the effects of the war in Ukraine.
This has been advanced by the minister in statements to the press from the Madrid Real Estate Exhibition (SIMA). "If there are no changes in the circumstances, especially in social measures, it makes sense for the Government to maintain them. Given this scenario, the Government will extend the measures that are necessary to try to cushion the negative effect of the crisis, including rent limitation, which is of a social nature and helps people cope with this situation", he pointed out.
The 2% limit on the annual renewal of rental contracts established by the Government is already causing a loss for owners of some 560 million euros, according to an idealista study. This is what landlords, whether large or small, who renew their contracts between April and June, are going to stop earning.
The real estate marketplace in southern Europe has also highlighted that one in three buyers believes that this prohibition on updating the rent by more than 2% will affect their investment