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2 clusters · 11 sources · 15 days · First seen · Last updated

Housing shortages and price increases in Spain

Overview

Spanish regions, specifically Mallorca and Málaga, are experiencing significant housing shortages driven by demographic growth and high demand.

In Mallorca, a rigid residential supply caused by geographical and regulatory constraints has led to an accessibility crisis. Authorities are attempting to expand supply through public housing, though concerns exist regarding a “call effect” on the construction labor market. A lack of local skilled workers may necessitate importing labor from mainland Spain or abroad, potentially increasing demographic pressure.

In Málaga, the housing deficit has grown significantly, with new construction covering only 52% of new households created between 2021 and 2025. This has resulted in a deficit of approximately 26,375 homes. Property prices in the capital reached a historic high in August, averaging 3,938 euros per square meter. Despite high interest rates, demand remains high due to tourism, remote work, and foreign investment.

Entities

Bank of Spain · Mallorca · Unión de Créditos Inmobiliarios · Spain · Ministry of Housing

Timeline

  1. 2 days ago

    [BUSINESS] 2 sources
    Málaga housing deficit grows as property prices hit record highs

    Málaga faces a housing deficit of over 26,000 homes as construction meets only half of new household demand, while property prices in the capital hit a record high of 3,938 euros per square meter.

  2. 17 days ago

    [BUSINESS] 9 sources
    Mallorca faces housing crisis and construction labor risks

    Mallorca faces a housing crisis where rigid supply and high demand drive up prices. Efforts to increase public housing may trigger labor shortages by competing with other major infrastructure projects.

Sources

brainsre.news · lacronicadebadajoz.elperiodicoextremadura.com · lavanguardia.com · levante-emv.com · menorca.info · merca2.es · moncloa.com · ocio.diariodemallorca.es · ultimahora.es · urbana.com.pt · web.eldia.es