Spain’s housing crisis is moving in only one direction: upwards, and at full speed. Despite years of ongoing issues, effective solutions remain scarce. The limited availability of homes and rising demand continue to push prices higher, making it increasingly difficult to buy property. If you hesitate to buy today due to high prices, it may be even more expensive tomorrow.
Housing Prices Keep Rising
After nearly an 8% increase in 2024, experts predict that housing prices will rise by another 5 to 7% in 2025. Credit rating agency Fitch forecasts that Spain will see one of the largest price increases in Europe, following Ireland and Portugal. This is particularly concerning because these price hikes far exceed wage growth, making homeownership less and less affordable for the average buyer.
A Structural Shortage of Homes
One of the key reasons behind this crisis is the lack of new housing construction. Currently, Spain is building only one new home for every two newly formed households. This persistent shortage is driving up prices, as supply struggles to keep up with demand.
Government Measures Are Falling Short
Although the government has introduced various measures to address the situation, they have so far failed to make a significant impact. Not enough homes are being built, and there are few initiatives to improve housing affordability. As a result, the crisis continues, with no clear solution in sight.
PBASpain is ready to guide you through every step of buying a house in Spain.
Our team of experts offers:
- Assist in discovering the ideal residence that aligns with your preferences and requirements.
- Guidance during viewings and negotiations.
- Legal advice and assistance navigating the Spanish legal system.
- Assistance in obtaining a mortgage and other financial arrangements.
- Support with handling all necessary documentation and registration processes.
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