MORE than 100,000 families are set to see their rent contracts extended as Spain scrambles to shield households from the fallout of the Iran war.
The government has ordered 13 major landlords – including real estate firms and investment funds – to extend rental contracts expiring between March 22, 2026 and December 31, 2027 if tenants request to stay, according to a memo issued Monday.
The measure, approved on March 20 as part of an emergency relief package, creates what the Ministry of Social Rights has described as a ‘new right’ for renters.
Until now, landlords could refuse to renew contracts once the legal term and any extensions had run their course. But under the new rules, they must grant an extension upon request – while keeping all existing terms unchanged.
It comes as pressure continues to mount on renters amid a spiralling housing crisis and the anticipated economic shocks linked to the Iran war.
Yolanda Díaz, Spain’s deputy prime minister and labour minister, said the measure would help thousands of families ‘live more peacefully.’
Her remarks were echoed by Pablo Bustinduy, the minister of social rights, who announced on Tuesday that thousands of households had already applied for contract extensions.
Critics have warned the policy could damage the economy by reducing the number of properties available for rent. Bustinduy dismissed those concerns as ‘fearmongering.’
“With the extension, we aim to stabilise rental supply and prices, while preventing many of these properties from being converted into tourist rentals or displacing residents from their neighbourhoods.”
READ MORE: Spain stands ready to build up to 2.4 million new homes to ease housing crisis, government claims
Spain’s housing market has faced mounting strain in recent years, with rents rising sharply across major cities. In urban centres such as Madrid and Barcelona, average rents have climbed by double digits, outpacing wage growth and eroding affordability for many households.
Experts attribute the crisis in part to a shortage of buildable land, with housing supply struggling to keep pace with surging demand.
“[But] this government is going to protect its residents,” Bustinduy said. “Request your contract extension, as is your right, and do not let anyone talk you out of it.”
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