+
Spain Government Announces Measures to Tackle Housing Crisis
Real Estate

Spain Government Announces Measures to Tackle Housing Crisis

Spain's leftist government unveiled new measures to tackle the country's long-running housing crisis on Monday, targeting a building boom and tax hikes on the owners of tourist rentals. The 12 announcements aim to offer more social housing, improve regulation and provide more support to renters, Socialist Prime Minister Pedro Sanchez told an economic forum in Madrid. 

Supply is lagging far behind demand in the sector that consistently ranks among top concerns in the European country, scarred by a market bust that accompanied the 2008 global financial crisis. 

New homes put on the market have trickled to around 90,000 per year as the country records 300,000 new households, Sanchez said. The premier announced the transfer of two million square metres of land to a newly created public company to construct "thousands and thousands" of affordable social housing units. 

Social housing makes up only 2.5 percent of Spain's total stock, whereas in EU peers France and the Netherlands it is 14 percent and 34 percent respectively, Sanchez said. 
The premier announced higher taxes and tighter regulation for tourist apartments, often blamed for reducing the availability of residential properties and causing rents to spike in the world's second most-visited country. 

"It is not fair that those who own three, four, five apartments for short-term rental pay less tax than hotels," Sanchez said. 

Sanchez also promised a tax exemption for owners who rent their properties according to the official index, even in areas not declared under market tension. 

His government passed a flagship housing law in 2023 aiming to boost the construction of social housing, cap rents in areas under the greatest market pressure and inflict penalties on owners who leave their properties unoccupied. But rents have continued to climb, increasing by 11 percent in 2024 according to real estate portal Idealista. 

Spain's leftist government unveiled new measures to tackle the country's long-running housing crisis on Monday, targeting a building boom and tax hikes on the owners of tourist rentals. The 12 announcements aim to offer more social housing, improve regulation and provide more support to renters, Socialist Prime Minister Pedro Sanchez told an economic forum in Madrid. Supply is lagging far behind demand in the sector that consistently ranks among top concerns in the European country, scarred by a market bust that accompanied the 2008 global financial crisis. New homes put on the market have trickled to around 90,000 per year as the country records 300,000 new households, Sanchez said. The premier announced the transfer of two million square metres of land to a newly created public company to construct thousands and thousands of affordable social housing units. Social housing makes up only 2.5 percent of Spain's total stock, whereas in EU peers France and the Netherlands it is 14 percent and 34 percent respectively, Sanchez said. The premier announced higher taxes and tighter regulation for tourist apartments, often blamed for reducing the availability of residential properties and causing rents to spike in the world's second most-visited country. It is not fair that those who own three, four, five apartments for short-term rental pay less tax than hotels, Sanchez said. Sanchez also promised a tax exemption for owners who rent their properties according to the official index, even in areas not declared under market tension. His government passed a flagship housing law in 2023 aiming to boost the construction of social housing, cap rents in areas under the greatest market pressure and inflict penalties on owners who leave their properties unoccupied. But rents have continued to climb, increasing by 11 percent in 2024 according to real estate portal Idealista. 

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code