Valencian Developers Call for Regulatory Review to Boost Rental Supply

The Aprova Lab forum gathered experts to analyze the strained rental market in Valencia and seek structural solutions.

Generic image of a house key on euro banknotes, representing the housing market and finance.
IA

Generic image of a house key on euro banknotes, representing the housing market and finance.

The rental market in Valencia is experiencing significant strain due to an imbalance between supply and demand, a situation that requires structural measures and a framework of greater legal certainty for owners and investors.

This was one of the main conclusions of a new edition of Aprova Lab, the forum promoted by the Association of Developers of Valencia (APROVA), which brought together nearly a hundred real estate professionals at the Territorial College of Architects of Valencia (CTAV) to analyze the new rental ecosystem in the city.
Juanjo Álvarez, Director of Rentals at Olivares Consultores Habitat, described a market «clearly strained, with a structural imbalance between supply and demand that continues to worsen», driven by both sustained demand growth and a lack of new supply. He highlighted the transformation of the tenant profile, with the emergence of digital nomads, expatriates, and senior profiles opting for rentals due to flexibility.

"Today there are many owners who do not rent out of fear. If legal certainty is strengthened and risks are reduced, a significant portion of that housing could enter the market."

Juanjo Álvarez · Director of Rentals at Olivares Consultores Habitat
For his part, Juan Valero, president of the Firmus group, warned of the impact that both the economic context and regulatory changes have had on investment in rental housing in recent years. He noted that «since 2021, a series of factors have clearly discouraged investment, from rising interest rates and increased construction costs to the introduction of new regulatory layers».
José Manuel Lorite, Managing Director of DeA Capital Real Estate, emphasized that the rental market in Spain shows «a clear mismatch between supply and demand, with a structural deficit of available housing that is straining access, especially in certain markets». He argued that the priority should be to sustainably increase supply, especially for protected housing.
Finally, Agustín Pérez, CEO of Atitlan Desarrollos Inmobiliarios, pointed out that «the rental market has experienced a sharp price increase in recent years, while supply has significantly decreased», making housing access difficult. He advocated for measures to increase short-term supply, such as streamlining new residential models or improving the taxation of protected housing.