A severe housing deficit in Spain is responsible for nearly 40% of the rise in property prices in recent years, according to a new report from CaixaBank Research.
The study, published in the bank’s sectoral real estate report, estimates that without the pressure caused by the accumulated shortage of homes, prices would have grown at an average of 3.7% annually, rather than the 6% observed.
📊 Key findings from the report:
- Housing deficit: 515,000 homes over the last four years, rising to 600,000 if unfinished homes are included, and up to 765,000 when factoring in properties used for alternative purposes.
- Regional hotspots: Madrid, Barcelona, Alicante, Valencia and Málaga show the greatest shortages due to population growth and tourism demand. Rural areas face much lower pressure.
- Booming demand: 700,000 transactions were registered in the 12 months up to June 2025, nearly 20% more than the previous year.
- Construction recovery: 132,000 new homes were approved in the past year (up 13% year-on-year).
- Foreign buyers: 18% of all home purchases (133,000) in the past year were made by foreigners — the highest on record. More than half were residents, while 44% were non-residents. Demand is concentrated on the Mediterranean coast and the islands, but also rising in Castellón, Asturias, Huelva and Córdoba.
The report concludes that reviving residential construction is urgent to ease price pressures and balance the housing market.
