When political noise takes priority over concrete housing policies, proposals like this tend to surface – in this case, a plan to limit the purchase of residential property in Spain by non-resident, non-EU foreigners.

Spain’s housing stock experienced a significant 16% annual decline, marking the steepest drop in recent years. The shortage is driven by rising demand, slow construction rates, and economic pressures, intensifying concerns over affordability and housing availability across the country.

The Socialist Parliamentary Group (PSOE) has introduced a bill aimed at promoting affordable rental housing.

Over the past year, the percentage of household income needed for housing rose to 23% for purchases and 36% for rentals, according to an idealista study based on Q1 2025 data.

Purchasing power has varied significantly across luxury housing markets since 2014, with "drastic shifts in purchasing power over the past decade," according to real estate consultancy Knight Frank's latest report, The Wealth Report 2025, on the luxury real estate market.

"It’s the economy, stupid." This phrase became famous during Bill Clinton’s successful 1992 presidential campaign against then-President George H. W. Bush. Since then, it has been widely used to highlight what is both obvious and essential.

When discussing foreign interest in luxury property in Spain, attention often turns to the Mediterranean coast and the Balearic Islands. However, the two major cities of Madrid and Barcelona also offer a substantial stock of high-end homes, which are increasingly attracting demand from abroad.

The sale of homes without possession is notably impacting the Spanish property market. Once virtually unheard of, these properties now account for 2.6% of all homes for sale in Spain, according to a study published by idealista based on listings from the Q4 2024.

On 3 April, the amendment to Law 14/2013 of 27 September on support for entrepreneurs and their internationalisation came into force, officially ending investment visas, commonly known as ‘golden visas’.

It has been five years since the onset of the coronavirus pandemic, and the real estate market has undergone significant changes, particularly in the rental sector. During the period of isolation, the supply of long-term rental properties doubled, peaking in December 2020 as prices fell. However, since then, rental supply has declined by 56%, while prices have risen by 30%. Political measures implemented in response have only reduced stock to minimal levels, placing further strain on the market with heightened demand and record-high prices in many capital cities.