New Housing Law 2025: Prices, Rents and Contracts

The Spanish real estate market is going through a period of transformation, and the entry into force of the new Housing Law in 2025 promises to mark a before and after for both those who wish to buy a home and those who invest in the sector. This regulation arises in response to the growing demand for transparency, stability and sustainability in the market, and aims to balance access to housing and encourage responsible investments. The following is an in-depth analysis of the main changes and their impact.

Main Changes in the New Housing Law

Below, we will point out the four main changes that arise in this new law affecting Spanish homes.

I. Rent Price Regulation

The law establishes that, in areas identified as“stressed” -those in which the demand for housing far exceeds supply- limits will be imposed on rental price increases. Mechanisms are introduced to allow for a periodic review of rental prices, so that they are adjusted to actual market conditions without disproportionate increases.

What are the implications?

Stability for Tenants: Tenants will be able to more clearly forecast their expenses, which protects families from excessive increases that could put their budget at risk.
Impact on Supply: By limiting rises, rental supply is expected to become more accessible, although some landlords may rethink their investment strategy.

II. Incentives and Tax Adjustments for Homeowners

The regulation includes a series of fiscal measures with a two-fold objective: to encourage renting at reasonable prices and to reduce real estate speculation. The key points of this section are as follows:

Tax Benefits: Deductions and other incentives are contemplated for owners who rent their properties at affordable prices, thus promoting a more balanced rental market.
Tax Increase for Vacant Homes: In certain areas, taxes will be increased on properties that remain unoccupied for long periods of time. This measure seeks to encourage the rental or sale of properties and prevent them from remaining in the hands of investors who use them as a store of value without contributing to the dynamism of the market.

III. Comprehensive Protection for Tenants and Buyers

Within the protection offered to both the tenant and the buyer, there are several measures that stand out and they are the following:

Limitations on Evictions: The law establishes more stringent conditions for proceeding with evictions, forcing landlords to seek housing alternatives before resorting to this extreme measure.
More Transparent Contracts: In both leases and sales and purchases, greater clarity will be required in contractual clauses, detailing rights, obligations and guarantees. This reduces the risk of legal conflicts and provides security to both tenants and buyers.
Legal Security in Transactions: For those buying a home, transparency is promoted in the documentation and in the buying and selling process, which facilitates the detection of possible irregularities and protects the investment.

IV. New Construction and Sustainability Requirements

Regulatory changes in the construction industry have arisen that affect the following:

Protected Housing Reserve: A percentage of new construction is required to be allocated to subsidized housing. This measure not only increases the supply of affordable housing, but also contributes to greater social cohesion.
Energy Efficiency Regulations: The law imposes higher standards for energy efficiency and environmental sustainability. This implies that new developments must incorporate technologies and materials that reduce energy consumption, favoring a more responsible and sustainable urban development.

Impact on buyers

For those in the process of purchasing a home, the new law brings with it a number of opportunities and challenges that may prove beneficial to homebuyers:

Stability and Transparency: Rent regulation and improved contract clarity bring greater predictability to the market. This is especially relevant in stressed areas, where price stabilization can favor a more secure purchase.
Tax Benefits and Grants: Depending on how the incentives are implemented, buyers may be able to access deductions and grants that facilitate the purchase of a home.
Evaluation of Zones: The regulation could generate variations in demand and supply depending on the location. Buyers should carefully analyze the characteristics of each zone to identify those in which the law provides greater security and appreciation potential.

Impact on investors

Investors should also adjust their strategies to the new regulatory framework, as they will be able to take advantage of new opportunities in the future:

Rental Profitability: Restrictions on rental price increases can affect the profitability of properties earmarked for lease. A thorough analysis of the location and profile of the property is essential to assess whether the investment remains attractive.
Opportunities in New Areas: Higher taxation for vacant homes may incentivize the activation of the housing stock. Investors who choose to diversify their portfolios in less stressed areas or who benefit from tax incentives could find new business opportunities.
Responsible Investment: Incentives for affordable rents can become a competitive advantage, especially for investors seeking long-term returns under a regulated and transparent framework.

How does this regulation affect Costa Blanca?

Opportunities to Buy, Rent or Invest in Costa Blanca:

Increased Supply of Homes for Sale and Rent.
With the new measures that penalize vacant homes, many homeowners will be more willing to put their properties on the market. This will expand the available supply, increasing your chances of finding a home that fits your needs and budget.
/Tip: If you are looking to buy, now is the ideal time to explore options before the market adjusts to the new regulations. Our real estate agency can help you identify properties with high potential for profitability or suitable for living.

Tax Incentives for Investors and Owners.
If you are planning to invest in Costa Blanca, the new law offers tax advantages to owners who rent their properties at reasonable prices. This not only generates stability in the market, but also allows you to obtain a secure and sustained profitability over time.
/Tip: If you are looking to buy to rent, choose areas with high residential demand and properties that meet the new energy efficiency standards, as they will be more highly valued in the market.

More Legal Security in Transactions.
Transparency in contracts and new legal guarantees make buying or renting in Costa Blanca safer than ever. The regulations require that purchase and rental contracts are clear and detailed, avoiding fraud or abusive clauses.
/Tip: Before signing a contract, check the terms and conditions and make sure you have a trusted real estate advisor. Our team makes sure that the whole process is clear, with no hidden surprises.

Possible Risks and How to Avoid Them:

Rental Price Regulations in High Demand Areas.
If you are looking to rent a property in Costa Blanca, you should be aware that some areas may be subject to price controls. This could make the availability of rentals in certain areas more limited.
/Solution: Explore different areas and consult with our team which ones have the best offer and the best profitability. You can also consider the option of buying with a mortgage, as new market conditions may make this option more viable than renting long term.

Changes in Taxation for Owners of Multiple Dwellings.
If you own multiple dwellings in Costa Blanca, it is important that you are aware of the new regulations on taxation of empty dwellings and the reduction of tax incentives in certain cases.
/Solution: If you have unused properties, we help you find suitable tenants or sell in the best conditions before the new tax rates affect your investment.

Stricter Building and Retrofit Regulations.
The new law imposes more stringent energy efficiency and sustainability standards. This may mean higher costs for renovations and the purchase of new homes that do not meet these requirements.
/Solution: Opting for homes already adapted to the regulations can save you costs in the future. In our real estate we select properties that meet the new criteria so you do not have to worry about future costly reforms.

Conclusion: The Key is in Planning

The New Housing Law 2025 is not a barrier, but an opportunity for those who know how to take advantage of it. With more supply in the market, tax incentives and greater security in transactions, Costa Blanca remains one of the best areas to invest or establish your home.

However, planning each step well is essential to avoid potential risks and make smart decisions. In our real estate agency, we are here to guide you, advise you and find the best option for you in this new scenario.

Contact us today and we will help you find your ideal home in Costa Blanca, with total security and confidence.