Spain’s Love of Home Ownership Set to Decline

Spain's Love of Home Ownership Set to Decline

Spain has Europe's second highest level of home ownership, at 76% - Image Source: EWN Media Group

SPAIN’S love of home ownership is set to decline as the pandemic causes young workers to struggle to access the property ladder, according to a major developer.

Spain has Europe’s second-highest rate of home ownership after Malta, with 76% of Spaniards owning their place of residence. However, according to the country’s biggest property developer, the trend of renting is set to rise as young workers find themselves unable to afford deposits.

David Martinez, CEO of Aedas Homes, said “No one can question that there’s a generation of young Spaniards who don’t have access to housing. The pandemic has accelerated that shift toward a German model.” In Germany, rental properties dominate the housing market.

During the pandemic, rental prices dropped across Spain, by 7.3% in Madrid and 9.4% in Barcelona according to property website Idealista. Aedas Homes have recently invested in land to build 16,000 properties across the country to cater to the new demand for rental apartments and houses.

Banks have tightened their restrictions on loans to property developers over the last year., now insisting that half of the units in a project are sold before construction begins as opposed to 30% before the pandemic, according to Martinez.

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Oisin Sweeney

Oisin is an Irish writer based in Seville, the sunny capital of Andalucia. After starting his working life as a bookseller, he moved into journalism and cut his teeth as a reporter at one of Ireland's biggest news websites. Since joining Euro Weekly News in November, he has enjoyed covering the latest stories from Seville, Spain and further afield - with special interests in crime, cybersecurity, and European politics. Anyone who can pronounce his name first try gets a free cerveza...