13 tourist municipalities and several districts of the Canary Islands capitals are stressed rental areas
[ad_1]
In the Canary Islands there are around 13 municipalities – coinciding with the tourist ones – that are considered stressed areas for rentals. Furthermore, in several cities on the islands, including the two Canary capitals, there are several districts that have the same consideration due to the high rental prices and the reduced supply.
To be considered a stressed zone, at least one of two circumstances must occur., as stated in Law 12/2023, of May 24, and recalled by Fotocasa. On the one hand, the average burden of the cost of the mortgage or rent, plus basic expenses and supplies should not exceed 30% of average income or the average income of households in the area. In the Canary Islands this percentage is far exceeded in these municipalities. Another circumstance is that the purchase or rental price of the home has experienced a cumulative growth of at least three percentage points over the increase in the CPI in the last 5 years from the Canary Islands.
To declare the stressed areas and take the appropriate measures, such as capping prices, it must be the autonomous community that takes the initiative and carries out a regulatory development of the state law. For now nothing has been done. Nor has any city council made any move and requested the declaration of a stressed area.. It is not ruled out that initiatives may be presented in the coming months. The town councils of Las Palmas de Gran Canaria and La Orotava are the only ones that have shown a willingness to do so but have not materialized it.
The Government of the Canary Islands has made it clear that, if that time comes, the steps to follow and the procedure will be studied.either. Close sources point out that if the current trend in the islands’ real estate market continues “with an absolute gap between the purchasing power of the buyers and the price”, it could be that the Government would have to adopt measures in this regard. “The lack of rent is brutal in these areas,” they point out.
In any case, andThe real estate sector is totally reactive to implementing price control measuressince one of the direct consequences would be the disappearance of rental housing.
Real estate portals, associations or rental management companies yesterday rejected the reference price index to control rents in stressed areas since they believe that will stop the entry of new homes to the marketfurther reducing supply and putting upward pressure on prices.
The Federation of Real Estate Associations (FAI) assures that a rental price index that forces rents to be capped will create more fear among owners, which will exacerbate the flight of habitual residence landlords from the market and will reduce the supply even more, according to Efe.
[ad_2]
Source link