Thus, the rise in prices for apartments and houses in Madrid is more than double the growth rate in Barcelona (+11.7% year-on-year).
The rise in real estate prices is caused by a combination of several factors: the lengthy process of obtaining building permits, the shortage of new building sites, and a large number of new immigrants.In the capital, the price increase is exacerbated by the influx of wealthy foreign investors, mainly from Latin America, who have triggered a boom in demand for luxury properties.
The Spanish authorities are trying to solve the problem of rising apartment prices. Prime Minister Pedro Sanchez announced the opening of public-private partnerships to accelerate housing construction. The government will allocate 1.3 billion euros for this over ten years.
Source: Bloomberg
