The industry questioned the price index for rent

19/02/2017

The government plans to approve two months before the decree that will form a benchmark for rental prices. The goal, explained a few days ago the Minister of Home Affairs, Meritxell Borras, is to give transparency to the market and "exaggerated rental modular increments that may occur." The sector, however, doubts that this might be so.

The first question is that how will this index because, as explained by the president of the Association of API Province of Barcelona, Joan Ollé, "it is very difficult to assess the peculiarities of each house." Although the government has said will introduce discriminatory elements, also the Chairman of AOSIS, an association that brings together more than 1,200 real estate agencies in the state, Oscar Martínez, said that "it is not easy to compare flats , why not be easy either create a realistic rate. " In any case, and despite the obvious difficulty of this first, by Professor of Economics at UPF and expert in real estate, José García Montalvo, the future index has some good news to bring transparency to the market, "and that is always positive, both for future tenants as well as owners. "
The problem, says the sector is that the index itself will not change the current upward trend in rental prices. The government hopes that greater transparency and the obligation of the owners to publish the ad asked if the price exceeds the reference will contain the anxieties of these owners to raise prices.
García Montalvo believes will be better able to negotiate the parties, "and perhaps penalize anyone who wants to swell 20% of the rental price compared to brand index", but added that this did not dampen the upward trend income. Will not because, as explained by the president of the association of promoters, PACE, Lluis seas "what to do is commit to increase the supply of rental."
The problem living in some cities where rents rising strongly, especially Barcelona and its metropolitan area, is that in recent months there has been a sharp imbalance between supply and demand: "If prices are well in Barcelona is because people get paid, "says Olle. This Barcelona, explains the CEO of the firm RTV, Vicente Ramon Tur, "reflected in part the demand pressure that comes from outside, students, workers start-up technology that are willing to pay more because, compared to London or Paris, but here the price is low. "
The demand increases but supply does not, even decline a bit, and that makes prices go up, "The solution is that most owners remove rentals market," said Martinez, however, indicates sector, calls for legal certainty, "If we carry penalize tax, will the biggest problem, the owner is already quite worried thinking if you pay month-end or not," said García Montalvo.
Olle adds, at this point, if municipalities to accept this penalty IBI "could hardly justify its legality; vigilant because we ended up breaking the toy; if the owner does not know what will be tomorrow, s'ho think twice. " The president of the API also raised doubts that such a measure "to resolve a problem that occurs only in Barcelona."
In addition, the sector is very critical historical lack of a clear commitment to the promotion of a public park for hire, "and now it seems that it wants private compensate," says Seas. A private are mainly private (85% of the market in Barcelona), and large operators, as in cities such as Paris and Berlin, and this fragmentation also makes the market more sensitive to abrupt increases. "In the end, what appears is that decisions are hot or looking over the headline, "says Hill.
phrases
"Making cost index because it is difficult for the peculiarities of each house," Joan Ollé, president API School in Barcelona province
"To affect the price you have to do is increase the supply of rental" Marsà Louis, president of APCE
"Nobody complained when negotiating downward"The rental income amounted, in some areas of Catalonia in very high rates in recent months, and all alarms are triggered. Perhaps because the change was sudden because a little over two years rental prices down, as did sales. The industry points out that between 2008 and 2014 the rental income plummeted during that period, says the president of API, Joan Ollé, "tenants renegotiate downward their contracts, and 80% reached Quito." Now the roles have changed and, as contracts end, the easiest is that the tenant is with a price increase, "and now is when the complaints start, but nobody had complained about discounts" says José García Montalvo.
Since the PACE also emphasizes the fact that the statistics published by real estate portals "have no credibility," says Louis Marsà "The average rent in Barcelona is 765 euros per square meter, which is not so high perhaps is making a hasty analysis of the situation, "he adds.
Nobody also want to hear talk of bubble in the sector. As president of the APEI, Óscar Martínez, the rent still has upside "if it achieves more supply," but also the partner of the firm RTV, Vicente Ramon Tur believes that it is already reaching the top "because end people can pay what you can afford, and there is little demand capable of assuming rents above $ 1200. "