Walter Finch
SPAIN is facing an unprecedented housing shortage after the number of homes for sale plummeted by 16% in the first quarter of 2025 – the biggest drop since records began.
The dramatic shortage has hit every major Spanish city, with Madrid suffering a devastating 29% plunge in available properties and Barcelona down 22%, according to new data from property portal Idealista.
Valencia has seen its housing stock fall by 23%, while even Malaga – traditionally one of Spain’s most resilient markets – recorded a 2% drop.
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The crisis is most severe in northern cities, with Oviedo seeing a catastrophic 42% collapse in available homes, followed by Burgos, A Coruña and Zaragoza – all down 39%.
Francisco Iñareta, spokesman for Idealista, warned the shortage is driving ‘massive price increases’ that have reached over 20% annually in Madrid.
“For yet another quarter we’re witnessing a record fall in the number of homes available for sale,” he said. “Strong demand is meeting supply that is not only unable to satisfy it, but continues draining month by month.”
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The housing shortage comes as Spain continues attracting foreign buyers and investors, while construction struggles to keep pace with demand.
Iñareta cautioned that the crisis will likely persist in coming months, with no immediate solutions to dramatically increase housing supply in the short term, though he noted ‘positive efforts to speed up construction of significant new housing developments in the medium term.’
The shortage is expected to continue pushing property prices higher across Spain’s major cities, particularly affecting international buyers looking to relocate to popular destinations.
