Residential rental agreements that are renegotiated in Spain can now increase by up to 2.19%, according to the reference index published this Friday by the National Institute of Statistics (INE), which applies to contracts established after the entry into force of the housing law in 2023.
The new figure for August 2025 increases compared to July, which was 2.15%. However, since this index was introduced, some agents in the sector have criticized it for forcing owners to raise prices below inflation, which they believe discourages the rental market.
Thus, the Federation of Associations of Real Estate Companies (FADEI), the employers' association of the professional real estate sector in Spain, assures that "the updates of rents that are currently being applied are still limited to very moderate increases and make little sense, especially when compared to the inflation rate, the increase in the purchase price of homes, and the shortage of rental apartments in large cities."
Miguel Ángel Gómez Huecas, president of the entity, warns that "if the INE index continues to show such low data, real estate investment in Spain, one of the key engines of the economy, will be seriously affected." He also points out that "the responsibility for increasing the supply of housing lies with the Public Administrations" and emphasizes that "renting must represent a profitable operation for owners; otherwise, they will opt for selling."