The Challenge of the Spanish Real Estate Market: Rising Prices and Shortage of Supply.

Judit Montoriol, chief economist at CaixaBank Research, highlights that prices are rising due to this high demand and limited supply, which is shifting demand to the outskirts of large cities. Furthermore, a significant increase in purchases is being observed in the northwestern regions of Spain, known as "Fresh Spain," by both Spaniards and foreigners. The difficulty in accessing housing particularly affects young people and middle- or lower-middle-income families who do not own a home. This situation is leading people to make important life decisions, such as continuing their studies, becoming independent, accepting job opportunities, or deciding to have children. The Bank of Spain has also issued reports highlighting the consequences of this bottleneck on the growth potential of the Spanish economy.

Regarding rentals, demand far exceeds available supply, with prices that are difficult for a portion of the population to afford. In the short term, no significant change is expected, but in the medium term, the foundations are being laid to reverse this situation through public policies focused on increasing the housing supply.