The Bank of Spain has recently published a report in which it redefines the housing crisis in Spain, highlighting that, although demand remains high, the deficit of new homes is not as acute as initially expected. Currently, around 100,000 homes are built annually, which, according to the Bank, is enough to mitigate part of the deficit, although Madrid and Catalonia account for a third of the problem.

The main factor influencing this situation is the slowdown in the creation of new homes. Although the real estate market continues to grow due to the increase in immigration and the demand for second homes, the pace of household formation is not as high as expected. In addition, the shortage of land for final use and qualified labour is limiting the sector’s capacity to meet the demand for new construction.

Urban and tourist areas, such as Madrid, Barcelona, Valencia and Malaga, continue to be the most affected by the housing deficit. Despite the difficulties, the report stresses that the situation could improve if measures are adopted to encourage the construction of new homes and the structural problems of the sector are solved. For buyers, this context creates investment opportunities, especially in areas with greater population growth.