The recent Royal Decree-Law approved by the Government, which maintains anti-eviction measures and establishes a system of state-backed guarantees for property owners affected by non-payment, has sparked significant controversy in the real estate sector. This regulation, aimed at protecting vulnerable tenants, raises serious doubts among landlords and investors regarding its effectiveness and real applicability.

Protection for Property Owners: Reality or Illusion?

The decree introduces a type of state-funded rental insurance to guarantee rent payments to property owners whose tenants are declared vulnerable. However, the criteria for access and the timelines for receiving compensation have not yet been clearly defined. In practice, this creates uncertainty in the rental market, affecting investor confidence and reducing the availability of rental properties.

Impact on the Real Estate Market in Barcelona

Barcelona has been one of the epicenters of the squatting phenomenon in Spain. The new regulation could worsen the situation, as many landlords might choose to withdraw their properties from the traditional rental market due to the lack of legal guarantees for recovering their homes in cases of non-payment or squatting. This could lead to an increase in rental prices and a lower availability of affordable housing in the city.

Distrust Among Those Affected

Many property owners have expressed skepticism about the effectiveness of the government’s proposed guarantee system. Previous experiences with similar measures in other countries, such as France, have shown that bureaucracy and delays in payments can make this mechanism an ineffective short-term solution. Additionally, the regulation does not address the root problem: the slow judicial system when handling cases of illegal occupation.

The Outrage of the Victims

While awaiting the fine print of the new decree, the Platform for Those Affected by Squatting has warned that they are not pleased with the policy. “To begin with, no matter how this decree turns out, it does not provide us with the recovery of possession,” emphasizes Ricardo Bravo. “Once again, responsibility is shifted to third parties, making it clear that the government continues to fail to invest in public housing and does not provide social services with the necessary resources to take care of vulnerable families,” he laments.

Furthermore, the new guarantee system does not inspire confidence, as a compensation system for property owners already exists, yet “only between 5% and 7%” of victims have actually received payments. The reason, according to Ricardo Bravo, is that compensations are only paid after the eviction has taken place—meaning the landlord must endure financial ruin caused by their squatting tenant until then. Moreover, “the payments are made at pre-established rates that are far below the actual rental market prices.”

Recommendations for Property Owners and Investors

• From the real estate management sector, we advise property owners to take extra precautions when renting out their properties. Some recommended measures include:
• Conducting a thorough background check on prospective tenants.
• Purchasing private rental insurance policies.
• Including specific protective clauses in rental contracts.
• Consulting legal professionals specializing in real estate disputes.

Conclusion

The new regulation on squatting and tenant protection introduces further uncertainty in an already tense market, such as real estate in Barcelona. While the objective is to ensure access to housing for the most vulnerable groups, it is crucial that these measures do not discourage real estate investment or harm property owners who comply with their obligations. Legal security and market confidence must be a priority to prevent a negative impact on the sector.