Spain's Housing Crisis: Prices Soar 8.5% Above Value

Spain's Housing Market Heats Up: Prices Soar as Demand Outpaces Supply Spain is grappling with a significant housing crisis, as evidenced by a recent report from Antena 3 Noticias. The Bank of Spain's data reveals a concerning trend: housing prices are currently 8.5% above their actual value, with some areas experiencing overvaluation exceeding 20%. This surge is primarily driven by a considerable imbalance between supply and demand. "Not only is it overvalued," explains one expert interviewed in the report, "but there are areas where prices are more than 20% above their actual value." The high demand stems from a confluence of factors, including a robust population increase and a favorable financial climate facilitating mortgage approvals. In March 2025 alone, nearly 43,000 mortgages were granted, representing a substantial 44.5% increase compared to the same period last year, according to INE data. This influx of buyers further intensifies the competition and pushes prices upward. The report underscores the urgency of addressing the housing shortage and affordability challenges faced by many Spaniards. The video concludes with a call for solutions to this pressing issue, highlighting the need for increased housing supply and potentially further government intervention to stabilize the market and ensure housing remains accessible to all.