Friday, 14 November 2025, 14:43
High prices are making access to housing difficult throughout Spain, but the fundamental cause of the housing crisis in Spain is to do with the lack of supply. The Bank of Spain is once again focusing on the housing shortage with its regular ‘financial stability’ report, published on Thursday, by including several references to the shortfall, although it concludes that “we are not experiencing a housing bubble like the one in 2008”.
The institution’s director-general for financial stability, Daniel Pérez Cid, explained that property prices are rising, but the “major problem” with access to housing comes from the supply side, since, being “so rigid, it is unable to keep pace with such strong demand”. Even so, Pérez Cid stressed during the report’s presentation that all the elements analysed thus far by the regulator have led these experts to conclude that, “in terms of financial stability, we are a long way off from the levels of the [previous] real estate crisis”.
Despite price pressures, the Bank of Spain stresses that the trend is not uniform across the country, with certain areas experiencing more difficulties and pressures than others. “There is significant price dispersion, with some regions growing less and others under more pressure,” he explained. He also noted that there is no runaway price increase across Spain as happened during the 2004-2008 crisis. “The gap between prices and incomes places us, in terms of financial stability, at levels far removed from that major crisis”, stated Pérez Cid.
Credit limits
Faced with this situation, the Bank of Spain has begun to design some measures to contain prices. In its opinion, it is necessary to focus on structural measures on the supply side, but the regulator is already analysing other tools to take into consideration to contain the crisis. For example, possible credit containment measures – as are already being applied in other European countries – to create a more comprehensive and prudent macroeconomic framework and prevent the risk of defaults in the hypothetical case of a new economic crisis happening.
The Bank of Spain is being quite categorical in its position: “We are only studying the framework that would allow for a well-informed debate”, so that, if necessary, measures can be taken to restrict lending and help mitigate this phenomenon.
Spain is one of only three countries (together with Italy and Germany) that has not activated measures regarding lending (the BBM model – borrower-based measures) to the most vulnerable households. These are the families for whom mortgage repayments take up a larger percentage of their monthly income. In countries where this measure is already in place, lower levels of debt and lower default rates have been observed because mortgages are not granted to the profiles deemed to be most at risk.
Prices continue to rise and the crisis is deepening. A study by real estate portal Pisos.com – also published this Thursday – reveals that foreigners account for one in three housing deals done on the Spanish coast. In some regions, almost half of the homes on sale are purchased by foreigners. This is the case in Alicante (43%), followed by Malaga (32%) and Santa Cruz de Tenerife (30%). Below 30%, but still at very high levels, are the Balearic Islands (29.5%), Girona (24.2%), Murcia (22%), Las Palmas (22%) and Almeria (18%). “These figures reflect the strong tourist component of the housing market and the sustained appeal of Spain as a residential and investment destination,” commented Ferran Font, research director for Pisos.com, adding that “the provinces of Barcelona (14%) and Madrid (7%) are less exposed in terms of figures relating to this phenomenon”.