June 25, 2018. The mayor of Barcelona faces a judicial battle over the imposition of 30% of protected housing. Businessmen and associations prepare a flood of consultations to the big law firms to legally stop the controversial initiative of Ada Colau. 'We can not sit idly by,' confesses a Catalan promoter. The measure taken ...

The shortage of supply coupled with the deactivation of new promotions will make Barcelona's park more expensive in an artificial way

June 25, 2018 .

The mayor of Barcelona faces a legal battle over the imposition of 30% of subsidized housing. Businessmen and associations prepare an avalanche of consultations to the big law firms to legally stop the controversial initiative of Ada Colau.

'We can not stand idle' confesses a Catalan promoter. The measure carried out by the mayor of Barcelona, ​​imposes 30% of homes protected in new residential developments. Fact that has unleashed endless consultations with the best law firms in the country. To prepare a legal front against the imposition of this initiative.

Entrepreneurs, individually, and various associations are analyzing how to act to prevent the planned measure from taking shape and ending up being approved next October. And if the initiative is still under way, they should be compensated in some way, until the courts decide on it.

' There are three fronts to explore' , says Luis Gualtieri (CEO of Oi Realtor). ' On the one hand, it is an initiative that goes against the legal framework, since the competence to apply such an average only corresponds to the autonomous community. In this case the Generalitat de Catalunya '.

' Actions are also being studied to prevent the projects from being paralyzed, should Barcelona City Council go ahead. And finally, patrimonial responsibilities will be demanded, because to continue with the measure all Barcelonians will have to compensate the promoters for the decision of their mayor '.

The measure proposed by Colau would modify the General Plan Metropolitan of Barcelona. This is a change that affects multi-family buildings, both new promotion and rehabilitation of the residential park, provided that it exceeds 600 square meters.

Consequences for the real estate market

While the judicial offensive is being prepared, the one proposed by Colau has begun to paralyze land purchase transactions that were close to closing.

'To date, only they buy projects if there is a significant price reduction, "says a promoter. 'The possibility of such a measure generates uncertainty and discomfort'

' In fact, the paralysis of new promotions and the impact that the requirement of 30% of protected housing will have a huge impact on the free housing market. .

The shortage of supply coupled with the deactivation of new promotions will make Barcelona's park more expensive in an artificial way. On the one hand, the third part of social housing will trigger even higher prices in Barcelona. A city in which 40% of the floor offer exceeds half a million euros.

Article author: OI Realtor .

Source of the Image: Pixabay.

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