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Housing continues to be one of Spaniards’ main concerns, with rising prices, limited supply, and fears of a new bubble. Economist and doctor in economic psychology Vicenç Hernández Reche warns that Spain is heading towards another housing bubble, although different from that of 2008: demand is structural and financing more cautious, but limited supply keeps sustained pressure on prices.
For 2025, he forecasts a 4–6% increase in prices and around 750,000 property sales, although with signs of slowdown by the end of the year. In 2026, prices will continue to rise more moderately, with a market strained by a lack of new housing and rising rents. Among the risks are possible ECB rate hikes, high construction costs, and administrative delays.
The expert identifies structural problems: a supply deficit (only 80,000–100,000 new homes versus a demand of 200,000), lack of affordable housing, excessive urban bureaucracy, and poor energy rehabilitation (over 50% of housing stock is over 40 years old). He proposes speeding up permits, encouraging affordable rentals, and promoting renovation.
He criticizes the Housing Law and rent control, calling them a “failure” for reducing supply and increasing legal uncertainty. Finally, he emphasizes that artificial intelligence will transform the sector through automated valuations, predictive analysis, and fully digital processes, ushering in a new era of professionalism and sustainability in Spain’s housing market.