Spain’s affordable housing sector presents significant opportunities for long-term investment and social impact, according to an Octopus Capital report.
The firm notes that during the past decade, average rents in certain parts of Spain have nearly doubled, while wages have increased by only around 20 percent. This widening gap between fast-rising housing costs and slower income growth is placing many households under increasing affordability stress.
At the same time, Spain’s population is growing faster than its housing stock, according to the report. In 2022 it welcomed more than 800,000 new residents – its fastest population growth in more than a decade. Most settled in urban or coastal regions where housing is already in short supply. Housing completions also lag far behind need. In 2023 fewer than 100,000 new homes were built versus 300,000 needed. The deficit could reach 680,000 by year-end.
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