Dilip Kuner
WITH rents soaring and a projected shortfall of 600,000 homes by 2025, experts are warning that Spain’s housing crisis won’t be solved unless red tape is slashed.
Despite a growing consensus that the country needs to build more homes, administrative delays continue to hinder progress.
The Banco de España estimates that the housing shortfall stems from a steep decline in construction over the past decade, with annual building rates plummeting from 650,000 homes at their peak between 2006 and 2008 to just 45,000 in 2016.
Although the construction sector has recently shown signs of revival – building permits increased by 14.65% in the first seven months of 2024 compared to the same period last year – experts say it’s not enough to address the crisis.
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According to Beatriz Toribio, general secretary of the Spanish Association of Construction Developers, bureaucratic backlogs are a major obstacle. “It takes longer to develop land and manage licences than it does to build,” Toribio explained.
She argues that while the private sector is moving swiftly to construct more housing, government administrative processes are lagging, slowing down essential developments.
Raymond Torres, economic director of the think tank Funcas, highlighted that the issue isn’t a lack of land, but rather the inefficient allocation and development of land for housing. “Spain is one of the least densely populated countries in Europe. There is an abundance of land, but it needs to be developed,” he said, emphasising the need for better land-use planning.
The housing shortage is particularly acute in the rental market, where high demand, a limited supply of properties, and the rise of short-term tourist rentals have driven up prices. In Spain’s major cities, average rents have surpassed €1,000 per month, pushing affordable housing further out of reach for many residents.
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