Catalan statutory council rules housing speculation law unconstitutional

The proposed law

The legislative proposal, registered by the Comuns party and agreed with the socialist-led Govern of Salvador Illa, forms part of the budget pact between the two formations. It amends Catalonia's urban planning law to empower town halls in designated tense residential zones to impose conditions on housing acquisitions. Any property bought under the new rules would have to be used as the buyer's habitual and permanent residence or as a rental home subject to the price limits set by existing regulations. The measure is aimed squarely at large investment funds that purchase entire buildings, terminate existing tenancies, and either convert units into room-by-room rentals or resell them for a substantial capital gain. On 8 July, the Catalan Parliament voted to process the bill by the fast-track single-reading procedure, with the support of PSC, ERC, Comuns, and CUP; Junts, PP, Vox, and Aliança Catalana voted against. The real estate sector immediately warned it would "battle" to bring the law before the Constitutional Court.

The CGE's opinion

On 4 August, the Consell de Garanties Estatutàries (CGE), Catalonia's statutory advisory body, published its unanimous opinion, requested in mid-July by Junts and the PP. The seven-point resolution, though non-binding, is categorical. It finds that the bill violates the right to private property (Article 33 of the Constitution), the right to inheritance, freedom of enterprise (Article 38), and the principle of legal certainty (Article 9.3). The CGE also holds that the text invades the state's exclusive competence over the bases of contractual obligations (Article 149.1.8) and that the single-reading procedure breaches parliamentary regulations and the right of citizens to access public office under equal conditions (Article 23.2). The opinion points to a "lack of sufficient certainty and predictability" in the norm.

“There is a lack of sufficient certainty and predictability in the norm.”

Additionally, the CGE notes that the bill fails to provide for the participation of the Consell de Governs Locals, the body representing local governments, and recommends opening a period for amendments.

Political reactions

Lorena Roldán, the PP's spokesperson in the Catalan Parliament, welcomed the opinion and warned the government that if it disregards the CGE and continues with the bill, "it can be sure that we will take it to the Constitutional Court." She described the law as "a botched job that was born violating fundamental rights, invading competences, and attacking basic principles" of the rule of law.

“It has dismantled this communist law from top to bottom. The PSC would do well not to ignore the opinion of this consultative body if it truly backs the institutional normality it claims to defend.”

Roldán accused Comuns and the Govern of attempting to "disguise as urban planning what was pure communism" by excessively regulating civil law and private property. The PP had previously argued that the law was confiscatory, generated legal uncertainty, and scared off investment.

What happens next

The CGE's opinion is not binding, meaning the government can still push the bill through. The law was scheduled for final approval in September. If enacted, it would allow municipalities to impose very serious urban sanctions on those who breach the usage obligations or use simulated or fraudulent transactions to evade them. Fines could reach 1.5 million euros, or be raised to the amount of the profit obtained if that figure is higher. The PP has made clear it will appeal to the Constitutional Court if the government proceeds, setting the stage for a protracted legal conflict. The left-wing parties that support the bill had initially seen the request for a CGE opinion as a way to gain time to build consensus on the articles, but the unanimous rejection now raises the political cost of moving forward.