Key data
| Regulation | Resolution of July 24, 2026, from the State Secretariat for Housing and Urban Agenda |
|---|---|
| BOE Publication | July 29, 2026 |
| Entry into force | July 30, 2026 |
| Legal basis | Article 18 of Law 12/2023, of May 24, on the right to housing |
| Declared areas | Llanes, Cabrales, Gijón, Avilés, Gozón (Asturias); Santiago de Compostela (Galicia); Basauri (Basque Country) |
| Validity of each declaration | 3 years from the day following publication |
| Category | Real Estate |
| Period | 2026 (2nd quarter) |
If you are a property owner, investor or real estate portfolio manager in Gijón, Avilés, Llanes, Cabrales, Gozón, Santiago de Compostela or Basauri, this resolution directly changes what you can charge in a new rental contract. The Resolution of July 24, 2026 from the State Secretariat for Housing publishes the quarterly list of tight market areas for the second quarter of 2026, in accordance with article 18 of Law 12/2023.
The effect is immediate: as of July 30, 2026, the rent limitation of article 17.7 of the Urban Leases Law (LAU) applies in these areas. It is not a warning or a transition period: it is mandatory from day one.
What does this regulation establish?
Law 12/2023 on the right to housing allows autonomous communities to declare tight residential market areas when rental prices exceed certain economic effort thresholds. Once the area is declared, the State Secretariat for Housing publishes the updated list quarterly. This resolution corresponds to the second quarter of 2026.
The areas declared in this resolution are:
| Municipality | Autonomous Community | Large holder threshold |
|---|---|---|
| Llanes | Asturias | More than 10 properties or more than 1,500 m² residential |
| Cabrales | Asturias | More than 10 properties or more than 1,500 m² residential |
| Gijón | Asturias | More than 10 properties or more than 1,500 m² residential |
| Avilés | Asturias | More than 10 properties or more than 1,500 m² residential |
| Gozón | Asturias | More than 10 properties or more than 1,500 m² residential |
| Santiago de Compostela | Galicia | 5 or more properties |
| Basauri | Basque Country | Not specified in the resolution |
The main consequence is the application of article 17.7 LAU: in new contracts for properties that have not been rented in the last 5 years, the rent cannot exceed the reference price index in force for that area. This limit applies regardless of what the parties agree: any agreement above the index is void in that excess.
Economic and operational impact
The most direct impact is the limitation of rental income on properties entering the market for the first time or that have not been rented for more than 5 years. If you planned to freely set the rent on an apartment in Gijón or Santiago de Compostela, you can no longer do so: the ceiling is the reference index.
Additionally, the condition of large holder activates additional obligations under Law 12/2023, such as the obligation to negotiate with the tenant before filing an eviction claim or the application of specific conditions in contract renewal. The threshold is significantly lower in Santiago de Compostela (5 properties) than in Asturian municipalities (more than 10 properties or 1,500 m²), which expands the number of affected property owners in the Galician capital.
From an operational perspective, real estate portfolio managers must:
- Identify which assets are in the declared areas.
- Verify whether each property has had a rental contract in the last 5 years.
- Consult the applicable reference price index before signing any new contract.
- Review whether the sum of properties in each area makes them a large holder according to the local threshold.
Who does it affect?
- Individual property owners with properties in Llanes, Cabrales, Gijón, Avilés, Gozón, Santiago de Compostela or Basauri who are going to sign a new rental contract.
- Investors and real estate funds with residential assets in these areas, especially those exceeding large holder thresholds.
- Patrimonial companies and family offices with portfolios in Asturias or Galicia: in Santiago de Compostela, with just 5 properties you are already a large holder.
- Asset managers and servicers who administer properties on behalf of third parties in these areas.
- Tenants in these areas, who have the right to have the offered rent not exceed the reference index.
- Real estate advisors and lawyers who must review contracts or investment structures in these municipalities.
Practical example
An investor has 6 apartments in Santiago de Compostela, all without rental in the last 5 years. He wants to rent them at free market price.
As of July 30, 2026, this investor can no longer freely set the rent on any of the 6 apartments: all are in a tight market area and none have had a contract in the last 5 years, so the article 17.7 LAU limit applies. Additionally, with 6 properties in Santiago de Compostela, he exceeds the large holder threshold (5 or more), which imposes additional obligations before he can initiate eviction proceedings or modify contractual conditions.
If the same investor had those 6 apartments in Gijón instead of Santiago, he would not be a large holder (the Asturian threshold is more than 10 properties or more than 1,500 m²), although the rent limitation due to tight market area would still apply equally to new contracts.
What should property owners do now?
- Identify if your properties are in any of the 7 declared areas (Llanes, Cabrales, Gijón, Avilés, Gozón, Santiago de Compostela, Basauri). The declaration is effective as of July 30, 2026.
- Check the rental history of each property: if it has not had a contract in the last 5 years and is in a tight market area, the rent for the new contract cannot exceed the reference price index.
- Consult the applicable reference price index in each municipality before publishing or signing any new contract. This index is the legal ceiling for rent.
- Verify if you are a large holder in each area: the threshold is different depending on the territory (more than 10 properties or 1,500 m² in Asturias; 5 or more properties in Santiago de Compostela). If you are, review the additional obligations that Law 12/2023 applies to you.
- Review ongoing contracts: the limitation affects new contracts, but it is advisable to audit the complete portfolio to anticipate renewals and expirations.
- Consult with a legal advisor specialized in leases if you have doubts about how the reference index applies to your specific situation or if you are close to the large holder threshold.
Frequently asked questions
Which municipalities have been declared tight market areas in the second quarter of 2026?
The resolution declares seven municipalities: Llanes, Cabrales, Gijón, Avilés and Gozón in Asturias; Santiago de Compostela in Galicia; and Basauri in the Basque Country. The declaration is effective as of July 30, 2026 and is valid for 3 years.
What rental limit applies in these tight market areas?
In new contracts for properties that have not been rented in the last 5 years, the rent cannot exceed the reference price index, according to article 17.7 LAU. Any agreement above that index is void in the excess.
How many properties do I need to be considered a large holder in these areas?
It depends on the municipality. In the five Asturian municipalities (Llanes, Cabrales, Gijón, Avilés and Gozón), the threshold is more than 10 properties or more than 1,500 m² of residential area. In Santiago de Compostela, the threshold is much lower: 5 or more properties. For Basauri, the resolution does not specify a differentiated threshold.
How long does the tight market area declaration last?
Each declaration is valid for 3 years from the day following its publication in the BOE. In this case, from July 30, 2026 to July 30, 2029, unless renewed or modified earlier.
Does this limitation affect rental contracts already signed?
The limitation of article 17.7 LAU applies to new contracts for properties without prior rental in the last 5 years. Existing contracts are not automatically modified, but it is advisable to review renewal and expiration conditions with specialized legal advice.
Official source
View complete regulation in official source
Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-16532