Walter Finch
SPAIN’S property supply crisis has reached historic proportions, with available homes for sale plummeting by 20% in the second quarter of 2025, according to new data from leading property portal Idealista.
The dramatic shortage represents the steepest annual decline since records began, creating a perfect storm for prospective buyers who now face severely limited choice and relentlessly rising prices across the country.
Every Spanish capital city except Malaga has seen double-digit decreases in available properties, with the Costa del Sol hub showing a modest 3% decline that contrasts sharply with the national trend.
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Malaga’s relatively stable market will come as welcome news to British buyers and expats who have long favoured the region.
Madrid has been particularly hard hit, with available properties down 25%, while Barcelona has seen a 21% collapse in stock.
Idealista spokesperson Francisco Iñareta warned that the supply crisis has reached critical levels.
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“The collapse in housing supply has hit a new low, to the despair of all those demanding housing who increasingly have less product to choose from and face higher prices quarter after quarter,” he said.
He blamed administrative failures and construction fears for exacerbating the crisis.
“Many administrations are unable to bring new homes to market or consider that new housing should be built, perhaps due to fear of ghosts from the bubble years,” Iñareta explained.
“However, faced with a perfect storm like the one we are experiencing – population growth, falling interest rates and an unattainable rental market that displaces part of the demand to the purchase market – the worst mistake that can be made is not to build housing.”
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The supply shortage comes at a particularly challenging time for international buyers, with Spain’s popularity as a destination for British property purchasers remaining strong despite Brexit complications. The dwindling availability is intensifying competition and driving prices relentlessly higher in popular expat areas.
The situation is even more dire in smaller cities, with Segovia and Ciudad Real both suffering devastating 45% drops in available homes.
Among major markets, Bilbao leads the supply shortage with a 33% fall, followed by Seville at 26% and Valencia at 24%. San Sebastián, Palma and Barcelona each recorded 21% drops, while Alicante saw a 20% decrease.
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The provincial picture mirrors the urban supply crisis, with Vizcaya province worst affected at 35% down, followed by Segovia and La Rioja both at 33%. Madrid province recorded a 27% decline whilst Barcelona province fell 22%.
Only four provinces managed single-digit declines: Santa Cruz de Tenerife and Cáceres both down 7%, Jaén at 8%, and Málaga province at 9%.
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