Thousands take to the streets in Madrid over rising housing prices
A large protest took place in central Madrid on May 24, according to ABC News. Thousands of Spaniards demonstrated against the rapid rise in housing prices, which has made property unaffordable for many, especially in the country’s capital and Barcelona. The recent economic upturn has not eased pressure on the housing market.
Housing purchase and rental in Spain: unaffordable prices
Protesters emphasized that they need neighbors, not tourists, and that homes should be for living, not for speculation. Some banners also mentioned evictions and the right to housing.
Finding rental housing is extremely difficult due to high costs and low wages, especially for young people, as noted by Estrella Baudu, a 28-year-old teacher. “The only thing they offer us is price increases,” said 36-year-old university professor Fernando de los Santos. “The reality is that those of us who rent receive notices from landlords about evictions,” he added.
Buying a home in Spain has become unaffordable for many due to market pressure and speculation, which drive prices up, especially in major cities and coastal areas. In recent years, Spaniards have repeatedly taken to the streets across the country in mass demonstrations. They are calling for stricter measures on tourist rentals, which are widespread in central areas of Spanish cities. The situation is becoming increasingly tense due to the growing number of tourists. In 2025, the country received a record 97 million foreign visitors.
Rising prices and housing shortage in Spain
Housing prices in Spain increased by almost 13% by the end of 2025 compared to the same period in 2024. The greatest pressure is seen in major cities and coastal regions, where demand remains high.
In the secondary housing market, a record increase was recorded in April 2026 — up 16.9% compared to the same month in 2025, reaching €2,748 per square meter. Prices rose in almost all regions. Over the quarter, housing increased by 3.7%, and by 1.5% compared to March.
Among autonomous communities, Murcia (+23%), Cantabria (+19.2%), Asturias (+17.7%), and Andalusia (+17.6%) lead growth. Prices also rose in Catalonia (+13.5%) and Valencia (+15.4%). The most expensive regions are the Balearic Islands and Madrid, while the most affordable are Extremadura, Castilla-La Mancha, and Castilla y León. Provincial capitals also saw increases, especially Ciudad Real (+22.7%).
Among major cities, San Sebastián is the most expensive, followed by Madrid and Barcelona. Among the cheapest are Zamora, Jaén, and Lugo. The Bank of Spain estimates a housing shortage of around 700,000 units compared with construction levels.
Political context of the housing crisis in Spain
Previously, tens of thousands of people marched in Madrid against Prime Minister Pedro Sánchez amid political tension and corruption allegations. The housing crisis has become one of the government’s key issues. Elections will be held in 2027, while housing affordability continues to fuel public discontent and political debate.
Last month, the Spanish government approved a €7 billion plan to build more public housing over the next four years and support young renters and homebuyers.
However, some initiatives, including a temporary rent freeze, were not approved by parliament, increasing pressure on the government.
Real estate market in Spain: risks of reform
Analysts from International Investment note that Spanish authorities are actively reforming the real estate market. These measures are often linked to bans and additional restrictions, changing conditions for property owners and market participants.
The supply of rental housing is shrinking, while stricter requirements are being imposed on owners. This reduces the sector’s attractiveness for investors: the share of such deals has fallen from 50% to 20.8%. As a result, capital is moving away from residential real estate toward other sectors, including hotels, or toward countries with more flexible market conditions.