A new round of debate is heating up in Spain over the future of the real estate market. This time, the spotlight is on an initiative by the Partido Popular (PP), which has proposed simplifying the process of converting offices and other non-residential properties into apartments. According to party representatives, these measures could not only boost supply but also help restore Spain’s reputation as a nation where most citizens own their homes.
PP Vice Secretary of Economy and Sustainable Development Alberto Nadal recently detailed the party’s position in an interview. He noted that Spain faces a severe housing shortage: According to the Bank of Spain, the gap between supply and demand is around 720,000 homes. The reasons are demographic changes, the growing number of households, and increased migration. At the same time, only 130,000 new housing units are built each year, while at least 200,000 are needed to stabilize the situation.
Housing Shortage
The lack of affordable apartments is becoming an increasingly urgent problem. Nadal says that unless immediate action is taken, the gap between supply and demand will only grow. He emphasized that to solve the issue, it is necessary not just to build new homes, but also to make use of existing buildings that are currently not intended for residential use.
As one solution, the PP suggests revising the approach to urban land use. The party insists on creating additional incentives for developers to boost construction volumes, as well as reducing bureaucratic procedures that delay the commissioning of new housing. Particular attention is given to simplifying the process of changing building purposes: today, converting offices into apartments involves lengthy approvals and administrative barriers.
Bureaucracy and incentives
The Partido Popular believes that excessive bureaucracy hinders the ability to quickly respond to market demands. Nadal calls for a radical reduction in the time required to review applications for property status changes. In his view, this should become a top priority for the authorities, as the housing situation has already become critical.
Additionally, the PP proposes introducing financial incentives for property owners and investors to encourage more active conversion of nonresidential premises into apartments. According to the party, this approach will not only increase the number of available properties but also revitalize city centers, where many offices remain empty after the pandemic and the shift to remote work.
Government policy under fire
At the same time, PP representatives sharply criticize the current government’s housing policy. They are particularly dissatisfied with measures aimed at regulating rental prices, which Nadal believes not only fail to solve the problem but actually make it worse. He recalled that similar restrictions were already implemented in Spain in the last century, leading to the decline of central urban areas and the disappearance of the rental market.
PP insists on the need to abandon strict regulations and focus on creating conditions to boost supply. The party is convinced that only market mechanisms can ensure a balance between the interests of tenants and property owners, as well as incentivize investment in the real estate sector.
Return to private homeownership
One of the key ideas promoted by the Partido Popular is supporting a model where the majority of Spaniards own their own homes. Nadal emphasizes that government policy should not be limited to developing the rental market. In his view, it is necessary to create conditions that enable young families and citizens with low incomes to afford buying a home.
Among the proposed measures are tax reductions for young buyers and families struggling to purchase a home. The PP believes that such steps will not only help address the housing shortage, but also strengthen the country’s economic stability, given that private property has traditionally been seen as a pillar of Spanish society.
New horizons for the real estate market
The PP’s initiative has already sparked widespread discussion among experts and market participants. Many note that converting office spaces into housing could become an effective tool for revitalizing urban areas and increasing apartment availability. However, the question remains how quickly these plans can be implemented in practice, given the current approval processes and the interests of different stakeholders.
At the same time, supporters of the reform are convinced that without drastic changes, Spain risks facing an even more severe crisis in the property market. Amidst rising demand and limited supply, any measures aimed at expanding the housing stock are seen as timely and essential.
In case you weren’t aware, Alberto Nadal is one of the key economic strategists of the Partido Popular and previously served as Secretary of State for Energy and Economy in the government of Mariano Rajoy. His proposals are frequently discussed in business circles and among real estate experts. The PP has traditionally advocated for market reforms, reducing administrative barriers, and supporting initiatives aimed at developing private property in Spain.
