Barcelona is experiencing an unprecedented imbalance in the real estate market. On one hand, demand for buying or renting property continues to rise. On the other, supply keeps shrinking while prices hit new record highs. As a result, many residents are being pushed out of the city, while foreign investors are strengthening their presence.
Experts note that government attempts to curb rental price growth have had the opposite effect. Property owners increasingly prefer to sell rather than rent out their apartments, fearing new restrictions and bureaucratic hurdles. This has led to a real void in the rental market, which neither individuals nor large companies are rushing to fill.
Pressure from demand
The situation is exacerbated by the fact that many tenants, tired of constant price hikes, are trying to buy instead. However, the price per square meter in Barcelona has long been out of reach for most local families. Against this backdrop, foreign investors—drawn by the Catalan capital’s enduring appeal—are becoming noticeably more active.
As a result, residents are forced to look for housing in the suburbs or even in neighboring towns, sometimes moving dozens of kilometers away from Barcelona. This not only complicates daily life but is also reshaping the city’s social landscape, with more apartments left empty or used as temporary accommodation.
Regulation challenges
Attempts to cap rent increases, contrary to expectations, have led to a reduction in supply. Property owners have become more selective, and some have left the rental market altogether. As a result, finding a suitable apartment has become nearly impossible, especially for young families and people with low incomes.
At the same time, the market is seeing an interesting trend: more and more people are being forced to live in former commercial spaces that were never designed for housing. This illustrates the need to reconsider urban planning policies and adopt a more flexible approach to the use of urban spaces.
Searching for solutions
Experts insist that without large-scale construction and renovation programs, the situation will not change. Active support for private initiatives and public-private partnerships is needed to increase the amount of affordable housing. Special attention is being paid to the idea of converting vacant offices and commercial spaces into apartments—a move that could be a real breakthrough for the market.
In addition, specialists recommend encouraging owners to repair and upgrade existing housing stock. This would not only improve the quality of life for tenants but also prevent further deterioration of old buildings. Professional property management also plays an important role, providing legal protection and prompt resolution of everyday issues.
New housing formats
Demographic shifts are setting new trends: more people are living alone or in smaller families. In response, new housing formats like coliving and cohousing are emerging, where residents share common spaces while maintaining personal autonomy. These projects could help address the growing problems of loneliness and the shortage of affordable apartments.
City authorities and developers are already considering the creation of compact, functional residential complexes that meet modern needs. However, unless existing regulations are revised and all parties actively participate, solving Barcelona’s housing shortage in the coming years will be a challenge.
In case you didn’t know, Mercedes Blanco holds key positions in several leading real estate companies in Barcelona. She is a board member of Fincas Blanco, the CEO of Vecinos Felices, and serves on the COAPI council in the city. With years of experience and deep industry knowledge, her opinion often sparks discussions on new strategies for urban housing development.
