AGP Executive Report

Mortgage Relief: ASUFIN wants banks to offer lower rates to homeowners who make major energy-efficiency upgrades, but the proposal has not been approved. Canary Islands: The regional government and Madrid have completed drafting a proposal to limit foreign home purchases, as housing affordability remains a growing political flashpoint. New Supply: Murcia’s long-delayed Nueva Condomina project could add nearly 800 homes, with infrastructure work underway and developers preparing plans. Home Upgrades: Andalucía has opened €20.77 million in grants for residential energy improvements, covering up to 50% of eligible costs, or 65% in some cases. Housing Discontent: Spanish unions are planning a November 11 general strike over housing, while young renters have joined protests over high rents and scarce affordable homes.

Foreign Buyers: The Canary Islands and central government have finalized a proposal to restrict home purchases by non-resident foreigners, including a 10-year residency requirement. Approval is being sought before November 29. Rental Rules: Spain’s expanded rental restrictions and eviction measures are intensifying debate over landlord protections and investor uncertainty, as housing costs keep the crisis in the spotlight. Developer Results: Metrovacesa reported a 75% rise in revenue through September and proposed a €1-per-share dividend for December. Housing Supply: Spain is expanding student accommodation as a shortage adds pressure to an already strained market. Commercial Property: AEW acquired a 26,677-square-metre retail park in Granada in an off-market deal for a French fund.

Rental Rules: Spain has widened rent freezes, contract extensions and eviction limits for large landlords in designated housing-shortage areas, with restrictions set to run through 2030. Agents say 2,067 long-term rentals have been withdrawn and 1,523 agreements put on hold, sharpening investor concerns. Student Housing: A €45 million state programme will co-finance nearly 2,000 university beds across seven projects as high rents make studying away from home harder. Property Investment: A €500 million luxury beachfront resort is planned for Marbella, while AEW has bought a 26,677-square-metre urban retail park in Granada, pointing to continued investment in Spain’s hospitality and retail markets.

Housing Pressure: Spain’s housing crisis is fuelling protests, with a Madrid camp and calls for a general strike as rents and home prices keep rising. In Andalucía, nearly one-quarter of mortgage holders and half of tenants are reported to live in poverty after housing costs, despite having jobs. Eviction Debate: The death of an 87-year-old woman shortly after eviction has intensified anger over rent hikes, but her landlord was a small property owner, not a major investment fund—complicating calls to target “vulture funds.” Retail Investment: AEW bought a 26,677-square-metre retail park in Granada, while PATRIZIA added eight Spanish Lidl stores to a 24-store portfolio across three countries, backed by long-term, inflation-linked leases.

Housing Pressure: Spain’s affordability crisis is spilling into the streets and election debate: one in three people is at risk of poverty after paying rent, while housing protests add pressure on policymakers. Property Rules: The Canary Islands are considering a 10-year residency requirement for homebuyers, and Barcelona has proposed raising property tax on tourist apartments by up to 150%, drawing threats of legal action from industry groups. Buyer Market: Foreign home purchases have fallen at their sharpest pace since 2020 as Spanish property prices continue to climb. Commercial Property: PATRIZIA has added eight Lidl properties in Spain to its €4bn European food-retail platform.

Housing pressure: Spain’s affordability crisis is driving tent protests in Madrid and a planned housing strike on November 11. One report says a third of Spaniards are near poverty after paying rent, while Catalonia’s housing minister says nine in ten residents are concerned about access to affordable homes. Rental access: Madrid plans to relaunch its ageing Plan Alquila rental portal by year-end, with mobile access and updated features. Property investment: PATRIZIA bought 24 Lidl stores across Spain, France and Italy, including eight in Spain, strengthening its €4bn food-retail platform with long-term leases. Market and policy: Spain’s construction output rose 0.7%, while foreign home purchases have fallen sharply as prices climb. The Canary Islands government has proposed requiring ten years’ residency to buy property.

Housing Affordability: Spain’s housing crisis is fuelling protests, with a camp in Madrid’s Puerta del Sol and demonstrations over soaring rents. Evictions: Canary Islands courts received 117 requests to suspend evictions for vulnerable households in the first half of the year and approved 14. Policy: Spain’s opposition has proposed zero property tax for first-time rural buyers, while Barcelona is considering raising tourist-apartment tax by up to 150%. Market: Foreign home purchases in Spain have fallen at their sharpest pace since 2020 even as prices keep climbing; meanwhile, Culmia and Cross Ocean have launched a €400 million platform targeting 900 Madrid homes.

Housing pressure: Rent protests continued in Spanish cities as affordability concerns fuel wider European demonstrations. Spain’s changing housing rules are also reportedly leaving more than 1,500 rental contracts blocked, while over 4,200 homes have been withdrawn from the rental market. Market signals: Foreign home purchases have fallen to their sharpest level since 2020 even as prices climb. In Murcia, the historic centre remains among the city’s priciest areas, while northern new-build districts and outlying neighbourhoods offer different options for buyers seeking modern amenities or more space. Policy proposals: With Spain’s election campaign focused on housing, the PP has proposed eliminating property transfer tax and stamp duty for under-40s buying a first home in rural areas. The Canary Islands government is also proposing a ten-year residency requirement for homebuyers. Urban planning: A Madrid summit bringing together Ibero-American city leaders put affordable housing, metropolitan growth and long-term planning on its agenda.

Market Data: Spain plans new INE indices tracking prices and rents for commercial property, offices and industrial sites, using tax and notarial records. The proposal is still under public review, with no release date set. Rental Rules: Recent housing decrees have left landlords and tenants seeking legal advice on contract terms, rent updates and renewals; their future depends on parliamentary approval. Affordability: Housing protests continue in Spain, with demonstrators in Madrid’s Puerta del Sol demanding action on rents and access to homes. Local Prices: Almuñécar has become the Costa Tropical’s priciest town, with asking prices reaching €3,293 per square metre in September, intensifying pressure on local buyers. Investment: Culmia and Cross Ocean have launched a €400 million residential platform targeting 900 homes in Madrid. Tourist Rentals: Barcelona is proposing to raise property tax on tourist apartments by up to 150%, prompting a threat of legal action from the sector.

Rental Rules: Spain’s latest housing decrees have left landlords and tenants uncertain over contract terms, rent increases and renewals. Law firms report a surge in queries, deals are being delayed and more than 1,500 rental contracts are reportedly blocked as the rules face parliamentary approval. Housing Pressure: Cost and access concerns continue to drive protests, while housing has become a central issue ahead of Spain’s November election. Foreign Buyers: Overseas demand is cooling as prices climb, with purchases in the Canary Islands down 20.3% and the Balearic market shrinking 15.4%. Barcelona Policy: The city proposes raising property tax on tourist apartments by as much as 150%; the employers’ association is threatening legal action. New Homes: Culmia and Cross Ocean have launched a €400 million platform targeting 900 homes in Madrid.

Housing Pressure: Spain’s housing crisis remains a central election issue, with protests and a camp at Madrid’s Puerta del Sol underscoring tenant frustration. Tourist Rentals: Barcelona proposes raising property tax on tourist apartments by up to 150%; industry groups are threatening legal action. Foreign Buyers: Purchases by overseas buyers have reportedly fallen at their sharpest pace since 2020 as prices climb. New Supply: Culmia and Cross Ocean are launching a €400 million residential platform targeting 900 homes in Madrid. Access to Housing: The Canary Islands is seeking permission to restrict overseas buyers and has proposed a 10-year residency requirement; Málaga has raised its residency threshold for social housing eligibility to five years. Spain has just 1.5% public housing, far below the Netherlands’ 34%. Property Risk: New flood maps show 61% more land in Valencia at risk, a warning for owners and prospective buyers.

Housing Squeeze: Spain’s housing crisis is reshaping daily life: in Lanzarote, three families share one home as rents put independent housing out of reach. More than 4,200 rental homes have reportedly been withdrawn, while foreign property purchases have fallen at their sharpest pace since 2020 even as prices keep rising. Tourist Rentals: Barcelona is proposing to raise property tax on tourist apartments by up to 150%, prompting a legal threat from the employers’ association. The Canary Islands are seeking approval to restrict home purchases by people without ten years’ residency; the measure is proposed, not in force. New Supply: Culmia and Cross Ocean have launched a €400 million residential investment platform targeting 900 homes in Madrid, adding a significant planned development to a market short on housing.

Rental Supply: More than 4,200 rental homes have been withdrawn in Spain, as landlords cite government rules and tenants face a shrinking market. Tourist Apartments: Barcelona proposes raising property tax on tourist flats by up to 150%; the employers’ association threatens legal action. Foreign Buyers: Overseas purchases are falling as prices climb, with the drop in the Canary Islands reaching 20.3%. New Housing: Culmia and Cross Ocean have launched a €400 million Madrid residential platform targeting 900 homes. Canary Islands: The government proposes requiring 10 years’ residency before buyers can purchase a home, a move that could further reshape the island property market.

Foreign Demand: Foreign nationals bought 62,327 Spanish homes in the first half of 2026, down 13% year on year; overseas non-resident purchases fell 18%, even as property prices continue to climb. Tourist Rentals: Barcelona has proposed an IBI surcharge of up to 150% for owners with four or more tourist-apartment licences, a measure still awaiting final approval and already facing a legal challenge from the sector. New Housing: Culmia and Cross Ocean are launching a €400 million platform to deliver 900 homes in Madrid, adding investment as Spain grapples with a shortage of affordable housing. Market Access: The Canary Islands has proposed requiring buyers to show ten years’ residency, but the plan is not law; separately, reports say more than 4,200 rental homes have been withdrawn from the market.

Madrid Development: Culmia and Cross Ocean have launched a €400 million residential platform targeting 900 homes across two sites in Madrid and Alcorcón, adding institutional capital to a market facing a chronic shortage of new housing. Valencia Flood Risk: A revised assessment expands mapped flood-prone land by 61%, to 43,779 hectares; proposed changes could affect building rules and future development. Rental Squeeze: More than 4,200 rental homes have reportedly been withdrawn, while estate agencies blame new housing decrees for shrinking supply. Mallorca’s rental market is also described as having “ground to a halt.” Foreign Buyers: The Canary Islands wants a 10-year residency requirement for homebuyers, as foreign purchases there fall 20.3%; the Balearics’ foreign property market has also contracted. Housing Politics: Affordability and eviction protests remain central to Spain’s election debate, putting pressure on parties to address high costs and limited supply.

Housing Crunch: Spain’s housing shortage is shaping the November 29 election, with protests continuing and reports of residents facing extreme commutes to find affordable homes. Spain has only 1.5% public housing, far below the Netherlands’ 34%. Rental Market: Agencies say government housing decrees are prompting small landlords to withdraw homes, shrinking long-term rental supply in the Balearics and intensifying competition for tenants. Foreign Buyers: The Canary Islands have asked Spain and the EU to allow restrictions on overseas home purchases; meanwhile, foreign home sales in the Balearics fell 15.4% year-on-year in the first half of 2026. Holiday Rentals: A new 10% VAT on short-stay tourist accommodation is due from December 1, potentially raising costs for visitors and owners. Construction: Murcia’s economy is forecast to outpace national growth through 2028, with construction employment expected to rise by an average of 3% a year.