Real estate prices in Spain are rising relentlessly, while the incomes and savings of many households cannot keep pace. This means that the dream of owning a home is increasingly becoming an unattainable illusion for broad segments of the population, especially for young people, families, and even the middle class. Unlike in the past, the current situation is not primarily due to speculation, but to deep-seated structural problems that massively hinder access to affordable housing.
Experts Call for Rethinking: 70-Year Mortgages as a Possible Solution
At the fifth Gran Jornada Inmobiliaria, a renowned industry meeting organized by the business magazine elEconomista.es, leading experts intensively discussed the future of the Spanish real estate market. One proposal that was frequently mentioned was mortgages with a term of up to 70 years, which can be inherited by the next generation. This model could be an answer to the pressing question of how future generations can gain access to home ownership.
The Main Causes of the Strained Housing Market: A Look Behind the Scenes
Developers primarily identify three factors driving the current escalation in the Spanish housing market:
- Lack of Developable Land: Especially in sought-after metropolitan areas such as Madrid, Barcelona, Seville, or Málaga, there is hardly any developable land available. Approval procedures for new construction areas are also often lengthy and complex, significantly delaying the development of new projects.
- Skilled Labor Shortage in the Construction Sector: The construction sector suffers from an acute shortage of qualified workers. Many skilled workers have left the industry due to poor working conditions and low prestige, which further hinders the construction of new homes.
- Complex Bureaucracy: The bureaucratic hurdles for building permits are high and vary greatly between different regions. This administrative complexity deters investment and significantly slows down construction projects.
Immigration as an Additional Price Driver in the Housing Market
Spain remains an attractive destination for immigrants, both from third countries and from other EU countries. This constant influx of people leads to a steadily increasing demand for housing, especially in cities and coastal regions. However, since construction activity is stagnant, the scarcity is exacerbated, driving prices even higher.
The Unattainable Dream of Home Ownership: When Alternatives Become a Necessity
For many young Spaniards, the dream of owning a home is becoming increasingly distant. Temporary jobs, high rents, and a lack of equity make real estate acquisition almost impossible. This means that alternative forms of housing such as co-living, shared apartments, or flexible rental models are gaining importance. However, these are often not a conscious choice, but the only remaining option.
70-Year Mortgages: Intergenerational Debt or Opportunity for the Future?
The concept of 70-year, inheritable mortgages offers a promising approach to solving the current crisis. Due to the extremely long term, monthly installments could be significantly reduced, making home ownership affordable for more people. Furthermore, parents could facilitate their children’s entry into the overheated housing market through the inheritability of property. Instead of having to start from scratch, descendants could take over an existing financing and thus benefit from the investments already made. This model could be a bridge for the next generation to bypass the currently insurmountable hurdles.
Not a Speculative Bubble, But Profound Change
Unlike the 2007 real estate bubble, which was characterized by an oversupply of housing, today’s crisis is based on a chronic shortage – of land, qualified personnel, and political foresight. In this new reality, 70-year, inheritable mortgages could evolve from a radical proposal to a necessary component of a new housing policy. A policy that takes into account Spain’s demographic, social, and economic transformation and offers sustainable solutions for the housing market of the future.
