Catalonia's recent rent control measures have led to a notable decrease in rental prices but also a significant drop in new rental contracts.

Official data from the Generalitat reveals that in the 140 municipalities where rent is regulated, prices fell by 5% while new contracts plummeted by 17.2% in the second quarter of 2024. In contrast, non-regulated areas saw a slight increase in contracts by 1.6%.

The city of Barcelona experienced a sharper decline, with rental prices dropping by 5.2% and new contracts falling by 19.2%.

This regulation aims to stabilize the housing market, but it has also driven many landlords to shift properties to temporary rentals, which are not subject to the same controls.

The Sindicato de Inquilinas views the price drop as beneficial for tenants, though they express concern over the diversion to unregulated rental markets.

Meanwhile, property owners warn of a reduced housing supply, exacerbating the demand-supply imbalance in Barcelona's rental market.