June 24, 2021

Idealista warns, about the control of rental prices, that the investment “will flee” from where it is applied


Madrid

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From Idealista they have pointed out the announcement of the Minister of Transportation, José Luis Ábalos, that will lead to the Congress of Deputies a Law to control rental prices «Where they have suffered disproportionate increases» supported by an official rental price index, that «any index that provides transparency is welcome». However, from the well-known real estate portal, critics have been shown about the use of this index for price control. «Investment in housing will migrate to cities with stable legal environments and will flee from the capitals that apply price control, ”said Idealista spokesman Fernando Encinar.

For the representative of the well-known portal, «in the sales market there are already numerous indices of solvent sources as appraisers, real estate portals or public entities such as Notaries or Registrars ». In this regard, he stressed that all of them provide “reliable data” that allow a “broad view of the reality of the market.” For the Idealist representative, the important thing is that the citizen has the greatest volume of information to make decisions. «In Idealista we have been betting for 20 years for bring transparency and clarity in prices, ”he said.

Encinar has disagreed on the use of this index to control prices. «We have been insisting for years that cover prices is not the way, it has not been in any market where it has been regulated, ”said the Idealista representative for whom it would only make sense in the case of public rental homes. On this last point he has warned that «investment in housing will migrate to cities with stable legal environments and will flee from the capitals that apply price control ».

Specifically, he pointed out that in the capitals or cities that avoid regulation «You will quickly notice an increase in investment and, therefore, of the offer, with thousands of empty and uninhabitable houses that will be reformed the market ». Which, in his opinion, will moderate prices. Where the regulation is applied, he said, that the tenants «Will continue to pay the same, but those of the future will look for in a market with much less supply, of worse quality and with more difficulties to find something affordable ».

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