Catalan Government Experts Endorse Limiting Speculative Housing Purchases

Spain - Ekhbary News Agency

Catalan Government Seeks to Curb Real Estate Speculation with Expert Backing

In a significant move to address Catalonia's escalating housing crisis, the Catalan Government (Govern) has unveiled a series of reports compiled by a committee of legal and economic experts. These reports unanimously affirm the constitutional and legal feasibility of imposing restrictions on speculative housing purchases, a practice widely seen as a major contributor to soaring prices and a lack of affordable housing. This initiative, launched in collaboration with the Comuns parliamentary group, comes as a direct response to the mounting pressure on the housing market, particularly in areas designated as 'stressed market zones.'

The five documents released underscore that limiting purchases aimed exclusively at generating economic returns through rental or resale is a legitimate and necessary measure. Experts argue that such regulations are fully aligned with the Spanish constitutional framework, specifically Article 47 of the Constitution, which guarantees the right to housing and emphasizes the social function of property. They propose that these restrictions be temporary and specifically applied in areas experiencing severe housing pressure, thus granting the Catalan government legal authority to intervene in the housing market to protect the fundamental right to housing.

From a constitutional perspective, jurist Carles Viver Pi-Sunyer, a former magistrate of the Constitutional Court, asserts that the right to private property is not absolute and can be limited to serve the social interest. Pi-Sunyer points to judicial precedents from the Constitutional Court that have upheld measures such as rent caps and forced contract extensions, reinforcing the argument that intervention in the housing market for social reasons has legal grounds. He further believes that Catalonia possesses sufficient powers within its civil competencies to implement such measures, allowing it to regulate relations between individuals and administrations in this domain.

In a deeper market analysis, Jaime Palomera from the Urban Research Institute of Barcelona argues that regulating speculative housing purchases is 'urgent.' Palomera advocates prioritizing genuine residential demand – families intending to live in the property – as well as public and social housing. His analysis of the Spanish housing market between 2014 and 2024 has shown a significant growth in real estate as an investment asset. To reduce speculative pressure, Palomera cites successful international models such as the Netherlands, Austria, Switzerland, and Singapore, where additional taxes on multiple property buyers have reduced foreign purchases by 80% to 90%.

For his part, lawyer Pablo Feu emphasizes that any limitations must be 'temporary, without permanence, and based on an objective, explicit, justified, and urgent need.' Feu stresses the importance of applying these restrictions in stressed areas, considering that the current speculative market behavior prevents many individuals from maintaining their homes despite no deterioration in their socio-economic situation. This, in his view, justifies extraordinary intervention.

Fuensanta Alcalá, in her report, suggests the need for a clearer definition of 'habitual residence' in the law and states that measures should have the endorsement of the Constitutional Court, viewing them as 'functional urbanistic determinations linked to land use and the social purpose of properties.' Alcalá warns that measures could be 'ineffective' if a 'specific, coherent, and proportional sanctioning regime' is not established to ensure their enforcement.

However, Rosa Fornas, a specialist in urban law, expresses reservations about solely relying on municipalities and their urban plans to regulate residential property use. She argues that if a proposed law 'limits private businesses,' it must be enacted through 'a legislative framework distinct from urban planning,' indicating the complexity of the required legal framework.

In the political arena, the Comuns party has called on the Catalan Government for 'courage and political will' to implement these measures. The party insists that the approval of a law regulating speculative housing purchases within six months is an 'indispensable condition' for supporting the 2026 budget. Comuns leader in Parliament, Jéssica Albiach, lamented that negotiations are 'stuck' despite the consensus on the legal and constitutional viability of the proposal. The fourth meeting between the Catalan Government and the ecosocialist party on the 2026 budget is scheduled for Monday, in an attempt to unblock the impasse and reach an agreement that paves the way for these important reforms.

Ekhbary News Agency