Spanish housing prices have continued to rise, unlike many other eurozone countries. In our previous update on the Spanish real estate market, we detailed the various elements supporting house prices, such as resilient real estate demand thanks to strong household growth and strong foreign demand, especially in tourist areas. Furthermore, housing supply growth is insufficient to meet growing demand, creating shortages and putting upward pressure on housing prices. Spaniards are also optimistic about the property market in 2024. In our survey, seven in 10 respondents in Spain expect prices to rise in the next 12 months.
However, 60% believe that housing in Spain is not affordable for the majority of citizens. Furthermore, 80% of the Spanish population fears that buying a house in Spain will be much more difficult for young people in the next three years. With rising interest rates and continued growth in house prices, it is currently not viable for many families to purchase a home, forcing them to rent for longer periods of time. Of those who rent, 46% admit that they do so because they cannot afford a house. Other reasons are less decisive. 17% rent so they can move around and not be tied to one place (17%), followed by 12% who want to avoid long-term financial obligations and 11% who are unsure of their future plans.