Demand outstrips supply: Spain’s property market sees housing shortage as prices rise 6.4%

THE Spanish property market is experiencing a lack of buying options, with house hunters outnumbering the number of properties for sale.

Figures published in El Mundo show that the number of properties for sale in Spain since March 2020 has decreased by 13.89%.

Sales picked up during an interlude between 2020 and 2021, but this period of increased buying along with a lack of new homes being built has left a shortage of properties that is now hampering the market.

Sales picked up for an interlude between 2020 and 2021. Photo: Pixabay

These trends are also driving inflation, with prices rising 6.4% in the last quarter of 2021. With more buyers than sellers, properties stay on the market for much shorter than before and the final price is much lowered by buyers. less – between only 5-8% against 10-15%.

Locations along the Costa del Sol are among the hardest hit by property shortages. Benalmadena is among the 10 most affected municipalities, with properties available for sale falling by 39.9% between 2021 and 2022, while the neighboring towns of Fuengirola and Estepona have seen a drop of 30.3% and 29, 9% respectively.

Pixabay Property 2
Locations along the Costa del Sol are among the hardest hit by property shortages. Photo: Pixabay

Valencia closely follows Benalmadena, with a drop of 39.8%. Two other municipalities in the autonomous community of Valencia, Vinaroz and Manises, are both in the five most affected areas in the country after seeing their real estate markets shrink by 54.4% and 48.5% in the last year. .

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Penny D. Jackson