In recent years, both the Netherlands and Spain have introduced housing laws aimed at making rental properties more affordable. While these laws were designed to benefit tenants, they have also had unintended consequences for the rental market, creating new challenges and opportunities for real estate investors—especially in Spain.

The Netherlands: Affordable rent act and its impact 

In July 2024, the Netherlands introduced the Affordable Rent Act, which places rent controls on nearly 96% of the rental market, including around 300,000 private rental units. While this has kept rents affordable for many low- and middle-income households, it has significantly shrunk the private rental market. Many landlords have chosen to sell their properties instead of continuing to rent under these regulations, tightening an already limited supply.
With rental prices rising in the shrinking free market and a housing shortage worsening, the Dutch real estate sector has seen a downturn in rental property investments. Property sales prices, however, are increasing—up 7.2% in mid-2024—pushing more investors out of the market. For real estate investors, the situation in the Netherlands has become increasingly difficult, with many turning their attention abroad.

Why Spain is still a hotspot for real estate investment 

Spain’s Ley de la Vivienda, introduced in 2023, also imposes rent controls in high-demand areas. However, Spain remains an attractive option for real estate investors, including those from the Netherlands, due to its lower property prices, high rental demand, and favorable investment conditions.

New investment opportunities amid tightening tourist rental laws

In tourist-heavy regions like Valencia and the Costa Blanca, new regulations for short-term rentals came into effect in August 2024. These laws require landlords to obtain tourist rental licenses, which must be renewed every five years. Properties must also meet strict quality and safety standards, and non-compliance can result in steep fines.
While these regulations may seem restrictive, they create opportunities for investors who are prepared to navigate the legal landscape. With Spain seeing 53 million tourists in 2024, and demand from digital nomads growing thanks to the new Digital Nomad Visa, rental properties—especially those for short-term tourists—are in high demand. Investors can capitalize on this by targeting regions that balance tourism and residential needs, such as Costa del Sol and Valencia.

So, what’s next for investors?

For real estate investors, Spain offers an attractive market with strong rental demand driven by tourism, digital nomads, and retirees seeking second homes. While regulations on tourist rentals are tightening, opportunities abound for those willing to comply with new laws and invest in properties that meet local requirements.
Compared to the Netherlands, Spain offers lower property prices and more flexible rental markets. However, staying informed about changing laws—especially regarding tourist rentals—is essential for investors looking to maximize returns.

At My Blue Bricks we maximize the ROI all while complying with the latest local regulations, to ensure that our investors from abroad can enjoy a hands-off investing experience.