THE rental market in some of Spain’s biggest cities has been driven to the brink of collapse by a mix of government red tape and the threat of illegal squatters.
Estate agents on the ground warn that there is practically NO property left to rent in major hubs like Barcelona because worried landlords are selling up and fleeing the market.
A legal system that leaves property owners exposed to nightmare tenants who refuse to pay or, worse, professional squatters who illegally take over their homes and cannot be booted out for months on end, have been blamed by experts.
The crisis is most acute in Catalunya, and in particular Barcelona. New data confirms the region is now the squatter capital of Spain.
According to the General Council of the Judiciary, one in five legal proceedings for illegal occupation (squatting) across the entire country takes place in Catalunya.
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Eva Lopez Cordero, CEO of local firm Fincas Eva, confirmed the exodus of small-time landlords is real. “We have seen a clear surge of owners selling up because of the fear of non-payment or Okupación,” she told reporters.
“The general feeling among landlords is one of utter lack of legal protection and snail’s pace judicial processes. Many prefer to sell before they take the risk of having a deadbeat tenant, or worse, an illegal squatter they can’t evict for months.”
The fury is not just directed at the lawless squatters, but at the politicians who created the chaotic legal mess.
Landlords say they are facing ‘fiscal fatigue’ and crushing bureaucracy that makes renting a complete headache. New laws like the controversial Housing Act and price capping measures have only made things worse.
“The constant changes in regulation create a feeling of total instability,” says Ms. Lopez. “Many small owners feel the current framework penalises those who rent out their properties legally but offers zero protection when things go wrong.”
Combine the rising costs of maintenance, tax, and insurance with the fear of having your property destroyed by a squatter, and the decision to sell becomes easy for many.
The result is fewer flats to rent in Catalunya.
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While small, honest landlords are being driven out, professional, high-rolling investors are circling.
These mega-money investors are taking advantage of the panic, snapping up properties that have been made too risky for the average person. They know demand will always outstrip supply, and they have the deep pockets and legal teams to cope with the chaos.
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