The regulation takes away from the appeal of buying a home to rent out.
A freeze on rental prices combined with the rise in the cost of houses and the increase in financing conditions, force investors to be more cautious when investing.
The Spanish government's proposed regulations on housing, prompted by the "Mari Carmen" case, are expected to impact investors who buy houses to rent. According to Fotocasa, the average rental yield in Spain is 6.4%, with seven provinces offering returns of at least 8%, led by Toledo at 9.2%. However, experts warn that new regulations, including a two-year rent freeze and limits on price increases, may discourage investors, while rising interest rates and housing prices also affect profitability.
The euribor rate has risen to 3.24%, and housing prices have increased by 14.7% in the third quarter, according to Tinsa by Accumi.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
