Inversiones Maslosa / Insights / Blog / Real Estate Market 2025Blog
Diversification, Profitability and Added Value
Inversiones Maslosa / Insights / Blog / Real Estate Market 2025BLOG
Opinion and economic analysis
HOUSING WILL PROVIDE NO RELIEF IN 2025, BRINGING MORE SUPPLY CRISIS AND HIGHER PRICES.
The situation in the Spanish real estate market is frankly concerning. The outlook suggests an escalating housing crisis, particularly affecting young people and the most vulnerable social classes. First and foremost, it is alarming to see the housing deficit continue to grow. While an increase in property transactions is expected, potentially reaching 670,000 in 2025, this will not be enough to meet real demand. The forecast of 250,000 new households being created, compared to just 150,000 new construction permits, is a clear indicator that the supply shortage will persist.
As for prices, the upward trend will continue, though at a slower pace. It is estimated that we will see a rise of around 5% in housing prices during 2025, which, while lower than the 8% increase in 2024, is still significant in a context where many families are facing economic difficulties.
The rental market is perhaps the most perplexing. Price interventions, such as those already implemented in Catalonia, are having counterproductive effects. The loss of 80,000 rental properties in 2024 is a disturbing figure. This not only reduces supply but also increases competition among tenants, making it even more difficult for those who need housing the most to gain access.
Current measures, such as public guarantees and subsidies, are insufficient and serve more as patches than real solutions. The creation of social and affordable housing should be an absolute priority. The fact that Spain has only 2.5% public housing compared to the EU average of 9.3% is a clear indication of where we need to focus our efforts.
In my opinion, we need a comprehensive strategy that addresses several fronts simultaneously: increasing the supply of housing, both for ownership and rental; reviewing price control policies to avoid adverse effects; and accelerating the creation of social housing. It is also crucial to address bottlenecks in the granting of permits and the availability of buildable land.
If drastic and effective measures are not taken soon, I fear we will see an increase in housing precariousness, with more people being forced to share accommodations or move to peripheral areas, which could have long-term social and economic consequences for our country.
