Rent limits would merely deter owners from constructing new rental units during a period of low supply, according to the Spanish Rental Housing Owners’ Association, which includes some of the foreign investment businesses.
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As Pandemic Evictions Rise, Spaniards Declare ‘War’ on Wall Street Landlords
The ongoing turmoil in Barcelona is a direct result of the financial crisis that started in 2008. Due to the economic slump, which primarily impacted homeowners, there were numerous bankruptcies.
A protest movement developed to defend them from unscrupulous lenders after the recession forced many individuals to evacuate their homes.
However, many people lost their homes, and the majority of them are now renters. Renters, according to activists, have taken the brunt of the crisis’ effects.
Previous Ten Years
In the previous ten years, the number of renters has climbed by more than 40% as homeownership has become more and more challenging due to foreclosures and other financial issues. Economists and Spanish media believe that private companies have accumulated at least 40,000 properties in the Spain.
However, the proportion of Spaniards who are home owners has remained high, at over 75%.
Blackstone, currently regarded as Spain’s largest landlord, acquired more than 1,800 flats from the Madrid city government in 2013.
These kinds of acquisitions went mostly undiscovered until the epidemic compelled landlords to deliver eviction letters to tenants who couldn’t pay their rent.
According to government figures, there were 14% more tenant evictions in Spain during the first three months of 2021 compared to the same time last year. The second quarter of this year increased eight times more than the equivalent quarter in 2020.
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