Have Spain's housing decrees favoured vulture funds?

Spain's housing decrees increase uncertainty for small landlords, who have fewer resources to hold on and may end up selling. Real estate investment funds, with greater financial capacity, are in a better position to buy those homes and wait.

The entry into force of the two housing decrees has sent uncertainty soaring among owners of rented flats. The small landlord has no cushion to absorb certain costs and timelines. The fund does.

## Three options for the small landlord

Faced with this outlook, the owner of one or two flats weighs up three paths. Keep renting and take the risk. Close the property and wait for things to calm down. Or sell. This last option, according to market watchers, may be the most common among those without the resources to sustain the situation for long.

## More supply for sale and falling prices

If many small landlords sell at once, the number of homes for sale rises. With more supply available, prices tend to fall. This is the moment real estate investment funds have been waiting for: they can buy at a price slightly above what most families and young people can afford.

## The funds weather the storm

Real estate investment funds are also affected by the decrees, but they have more resources to hold out until the storm passes. That staying power allows them to wait, buy cheap and take an increasing share of the rental market. Over time, according to this analysis, most rental housing could end up in the hands of these funds, and then the legislation could be reformed again to favour landlords.

We are talking about scenarios and forecasts, not accomplished facts: any decision to buy, sell or rent should be discussed with a professional.