A new report from Spain’s central bank (Banco de España) delivers a clear and serious warning:
❗️ The housing shortage in Spain is set to worsen significantly over the coming years unless decisive action is taken.
This is no longer just a big-city issue. The Málaga region and Costa del Sol are now officially named among the five areas in Spain facing the most severe supply-demand imbalance – alongside Madrid, Barcelona, Valencia, and Alicante.
🔍 A Shortfall of Up to 450,000 Homes
According to the central bank, Spain currently lacks between 400,000 and 450,000 homes. While this marks an improvement compared to the 600,000 shortfall recorded in 2023, the problem persists.
It’s clear that:
- New construction is too slow.
- Population growth remains strong.
- International demand keeps driving the market forward, especially in attractive areas like the Costa del Sol.
💡 Why Is the Problem Getting Worse?
Several factors are accelerating demand further:
- Falling interest rates and improved financing conditions.
- Over 700,000 homes were sold in Spain in 2024, with 90% being resale properties.
- At the same time, new developments remain entangled in bureaucracy, land shortages, and rising construction costs.
In short, demand is rising while supply struggles to keep up – a classic recipe for sustained housing shortages.
📊 Rental Market Under Pressure
For those renting, the situation is equally challenging:
- Rental prices increased by 12.5% between 2015 and 2023.
- In many areas, households now spend 25–30% of their gross income on rent, far above what economists recommend.
Here on the Costa del Sol, particularly in Málaga, Marbella, and Estepona, the pressure is intensified by:
- Short-term rentals targeting tourists.
- A growing base of international residents pushing up demand.
🛠 What Does Banco de España Recommend?
According to the Bank of Spain, there’s no easy solution, but several measures are urgently needed:
- Simplify urban planning and building permit processes.
- Support industrialised and prefabricated construction to speed up delivery.
- Increase public-private partnerships focused on affordable housing.
- Introduce insurance solutions and income support for landlords willing to offer homes at reasonable prices.
- Develop public transport infrastructure to open up suburban areas for housing development.
In short, political coordination and concrete decisions are needed – now.
🔑 My Perspective as a Real Estate Professional
Working daily in the real estate market here on the Costa del Sol, I can confirm:
Our region is now just as exposed to Spain’s housing crisis as the major cities.
It’s a classic Catch-22:
- International demand is a positive driver for the market.
- But local residents and young adults risk being priced out.
Interestingly, major banks like CaixaBank are beginning to move further up the value chain – looking at development and construction, not just financing. Capital exists. Demand exists.
What’s missing? Political will and structural reform.
I believe Spain now faces a strategic choice:
- Continue to rely solely on market forces – or
- Recognise housing supply as a national priority and act accordingly.
For investors, developers, and advisors, understanding these structural challenges is essential. But opportunities also exist for those who can deliver new homes efficiently and at scale.
📣 What’s Your Take?
How do you view the situation?
Is Spain’s housing shortage a threat or an opportunity for real estate players?
Let’s discuss.
For more information on buying property in Marbella and Costa del Sol, visit Nookhomes for expert guidance and listings that meet your criteria.
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