Catalonia has taken a further step in its intervention of the rental market with the approval of new regulations governing short-term and room rentals.

The stated aim is to close loopholes that have allowed landlords to bypass rent caps in designated “stressed areas” and to curb practices considered abusive under existing housing laws.

The new regulation sharply narrows the definition of short-term rentals, limiting them to recreational, holiday or tourist uses and requiring clear documentation of the contract’s purpose. From now on, temporary rentals linked to work, studies, medical reasons or renovation works will be treated as primary residence leases and will be subject to regulated rent limits.

This change is significant. While regulated rents have started to show signs of moderation, short-term rental contracts have surged by more than 50% year-on-year, nearly doubling their share of the market. For the Catalan government and its supporting parties, this shift demonstrates that some landlords have used short-term contracts as a way to circumvent price regulation.

The law also addresses room rentals by establishing that the combined rent paid by individual tenants cannot exceed the maximum rent allowed for the entire property. The intention is to prevent landlords from dividing flats into multiple rooms in order to increase overall income.

Beyond contractual definitions, the regulation strengthens enforcement mechanisms. Penalties for breaching rent caps can reach up to €900,000, tenants’ rights of pre-emption and repurchase are expanded, and the protection period for certain social housing units is extended. Inspectors are granted enhanced authority, and new monitoring bodies are created to ensure compliance. Rental deposits held by the public housing authority will also be used to finance new affordable housing projects.

The Catalan government frames the reform as a defence of the right to housing and social cohesion, particularly in a context where many households spend more than 30% of their income on rent. According to this view, insufficient regulation fuels price pressure and undermines access to essential aspects of daily life.

Opposition parties have strongly criticised the law, arguing that it undermines private property rights, discourages investment and could further reduce housing supply. From this perspective, excessive regulation risks worsening the structural imbalance between supply and demand.

At its core, the debate remains unresolved: how to protect tenants without choking off supply. Catalonia’s approach focuses on tightening legal definitions and enforcement, but its success will depend on effective implementation, inspection capacity and whether these measures are accompanied by a real increase in affordable housing supply.

In a highly pressured market like Catalonia’s, the new regulation represents a turning point for landlords, investors and tenants alike. The key question now is whether these rules will stabilise the market — or introduce new distortions that further complicate access to housing.