Housing Shortage in Spain: New Builds Lag Behind

Despite growing interest in Spanish property, new official statistics paint a complex picture. Depending on the source and measurement method, new builds account for between 9% and 21% of the total market — either way, it signals structurally low supply. Spain’s housing shortage has become a hot topic, with debates about underbuilding, rising prices, and limited transparency in the rental market.

But what does this mean for you as a buyer? In this article, we explain the situation, analyze the implications, and show how to navigate the market to make a smart investment.

In this article we cover:

• What Spain’s statistics office INE (Instituto Nacional de Estadística) and the housing ministry MIVAU (Ministerio de Vivienda y Agenda Urbana) actually measure — and why the figures differ.
• How the limited supply of new builds affects price, choice, and timing in your purchase decision.
• How to make better decisions with data and local market knowledge.

Why are so few new homes being built?

There are two official ways to measure the market. INE tracks transfers that have been entered into the property register, while MIVAU builds its series from transactions reported by notaries. Differences in timing, coverage, and how “new build” is classified lead to different shares. Regardless of the definition, the picture is clear: new builds represent a small part of the market.

New builds vs. resales (INE and MIVAU 2024)

International buyers

Foreign buyers remain an important driver, especially in coastal areas. According to MIVAU, non‑resident foreigners accounted for 56 139 purchases in 2024 — 7.84% of all transactions — a slightly lower share than 2023 even though the absolute number increased.

Across sources, foreign purchases total around 15–20%. Registradores shows roughly 15% (2024). MIVAU is around 18% (including resident foreigners). Notaries put the first half of 2024 at about 20% and note a record price per m² among non‑residents.

The Golden Visa program was abolished on 3 April 2025. Nationally, the program accounted for a small share (around 0.3% of all purchases 2013–2025), but had greater significance in premium segments and some municipalities. Early 2025 observations point to a continued high foreign‑buyer share in established destinations, suggesting that demand was not driven solely by residency rules.

For rule changes affecting international buyers, also see our overview: Spain abolishes the Golden Visa program in 2025.

What this means for your purchase decision

The housing shortage creates a challenging market. Fewer new developments mean more buyers competing for limited supply, pushing prices higher and making it harder to find the right home — but it also creates opportunities if you want to invest in a market with strong demand.

• Higher competition: You compete with more buyers for fewer properties, especially in popular coastal areas.
• Rising prices: Low supply and high demand is the classic recipe for price increases.
• Harder to find the right fit: With fewer newly built options, it may be difficult to find a home that meets modern standards for design and functionality.

This raises the bar for you as a buyer. Should you go for a new build with long delivery times, or enter bidding on the resale market? How does this affect long‑term value development?

A data‑driven strategy for a complex market

In a market like this, traditional expertise is no longer enough. At Noir Properties, we combine local insight with an advanced data‑driven approach and AI to identify value — areas and properties where the housing shortage has not yet been fully priced in.

Here’s how our approach helps you:

• Data‑driven market analysis: We use AI tools to analyse thousands of data points — from price trends and transaction volumes to demographic shifts — to give you an objective, realistic view of the market.
• Identify growth areas: Our technology helps us find hidden gems and pinpoint areas with high growth potential.
• Weigh pros and cons: We help you compare new builds versus resales based on your needs and goals, supported by data and our matching service.

Buying a home in Spain should be exciting and rewarding — not stressful. With the right guidance and a modern, data‑driven strategy, you can avoid pitfalls and find your dream home or a profitable investment.

Contact us

Want to avoid pitfalls and find the right property in a changing market? Contact Noir Properties today for personalized advice — whether you’re looking for a new build, investment opportunities, or your future home in the sun.

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Sources

• INE — Press release on ETDP (Dec 2024 and full year 2024) — Annual data: 641 919 home purchases, 135 052 new builds (21%) and 506 867 resales (79%).
• Registradores — summary of foreign purchases 2024 — ~93 000 purchases (≈14.6% of transactions) with high shares in the Balearic Islands, the Valencia region and the Canary Islands.
• MIVAU — Observatorio de Vivienda y Suelo, Boletín nº52 (Q4 2024) — Official quarterly report with 2024 summary.
• La Moncloa — press note on Observatorio bulletin 52 — Notes, among other things, 199 051 transactions in Q4 2024 and 100 980 dwellings completed in 2024.
• Europa Press — MIVAU totals for 2024 — 715 429 transactions, of which 65 486 new builds and 649 943 resales (≈9%/91%).
• Notaries — foreign purchases H1 2024 — ~20% of transactions and record price per m², especially among non‑residents.
• Golden Visa — abolition in 2025 and market share — ~0.3% of all home purchases 2013–2025, with the greatest impact in premium segments.