Spain continues to face a severe housing shortage, exacerbated by rising prices and a limited supply in the market. Experts estimate that to meet demand and stabilize the situation, the country will need to build between 1.6 and 2.3 million new apartments and houses over the next five years.
Analysts note that one of the main causes of the housing crisis remains the complex bureaucratic system. The approval process and obtaining building permits can take years, and in some cases, project timelines extend up to two decades. This is due to the need to obtain approvals at municipal, regional, and national levels, significantly increasing the duration and costs for developers.
Another issue cited by experts is the lack of suitable land for construction, especially in major cities. Although the country has about 255 million square meters of land suitable for building, the price of such plots continues to rise. In the second quarter of this year alone, the average land price increased by nearly 8%, reaching the highest levels of the past decade.
To double construction volumes and meet growing demand, the construction sector will need to attract about 25 billion euros in investments annually over the next decade. Experts stress that more effective urban planning policies are needed to allow developers to plan their projects and financial flows in advance.
The situation is further complicated by high tax burdens. According to experts, taxes can increase the final cost of housing by almost 45%. In addition, excessive regulation and insufficient government funding only worsen the problem. Experts believe that to improve the situation, the real estate tax policy needs to be revised, duplicate fees eliminated, and the impact of taxes on price growth reduced.
An important step to support young families and those without sufficient savings could be the reinstatement of government-backed mortgage guarantee programs. This would give more citizens access to housing and lower the barriers to homeownership.
According to forecasts, Spain’s population may reach 52 million by 2030, which will further increase the demand for housing. In these circumstances, experts are calling for urban planning reforms, simplified administrative procedures, and increased government investment in residential construction.
Overall, overcoming the housing crisis in Spain requires a comprehensive approach that includes legal reform, tax system adjustments, and infrastructure development. Only in this way can affordable housing be provided for all segments of the population and the real estate market stabilized in the long term.
