Spain will lead in the growth of house prices in Europe at least until 2028, according to the rating agency Standard & Poor’s.

According to their calculations, Spanish prices will rise by 9.1% this year, then by 7.4% in 2027 and 6.2% in 2028. This is the fastest growth rate among European countries. The reason is trivial: little is built, and demand is growing. Lack of permits, shortage of workers and expensive materials are to blame. At the same time, work creates demand, wages rise, migrants come.

For those who already own property, this is good news. The value of property will increase, investment will bring income. But there is a flip side: young people are falling further behind the opportunity to buy housing, and rents are going up. In Spain, this has already become a political issue, with people demanding a cap on rental prices and taxes on investors.

The government promises €7 billion for the housing program, but S&P is skeptical: the results won't come until a few years from now. As long as the housing shortage persists, prices will rise – it is only a question of who will make money from it.

Source: Spanish Property Insight