Access to rentals has narrowed considerably in recent years, becoming one of the country’s main social concerns. The root of the problem is identified: supply is clearly insufficient to meet growing demandwhich is driving prices to levels never seen before, a situation that is worsening in the country’s large cities, and which mainly affects younger people and vulnerable groups; But what is the reason for this growing lack of supply?
Real estate professionals attribute this to multiple factors that interact with each other, and that generate an increasingly tense market. The most relevant reason is the controversial housing law, which came into force in May 2023 and has caused many owners to withdraw their properties from the market.
This is reflected in the XX edition of the real estate barometer, prepared by Unión de Créditos Inmobiliarios (UCI) and Spanish International Realty Alliance (SIRA), in which the second reason stands out: distrust of owners in the effectiveness of eviction processesespecially in cases of non-payment. Added to these two factors is the difficulty in achieving adequate returns and the change of use to vacation rentals.
Far from observing an improvement in the stocksexperts anticipate a trend towards shortages that will continue in the coming months. To balance the market, Real estate professionals estimate that supply should grow by 56% in the next three years.
“The results of this edition show the urgent need for structural solutions to increase the supply of housing in the Spanish market. It is essential to offer guarantees to owners to boost the rental sector,” explains José Manuel Fernández, deputy director general of UCI.
Precisely, another recent UCI report warned that the shortage of supply would mean an average increase in prices of 6%while rental operations will decrease by 3.1% throughout the year.
Purchase and sale home
The purchase and sale market also has a pronounced housing deficit. According to estimates by real estate professionals, Spain needs to add nearly 280,000 homes to the market per year until 2027 to balance supply and demand.
Regarding the causes that motivate the lack of stock, The fundamental factor is the low level of constructionfollowed by the waiting attitude on the part of the owners in the face of possible price increases or the progressive reduction in the supply of properties from bank foreclosures.
Other factors have less weight, such as the lack of investment alternatives to real estate or the incorporation of foreign investors and buyers into the market, details the UCI and Sira report.
In the buying and selling segment, experts also anticipate that the lack of stock will continue in the coming months. By region, 100% of the agents in Asturias, the Canary Islands, Cantabria, the Community of Madrid, Castilla-La Mancha and Galicia state that their markets have a lack of stock of homes for sale, while La Rioja is at the opposite extreme. (50%), Castilla y León (69.2%) and Murcia (66.7%).
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