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Sunday, Mar 16, 2025

Rental Evictions Rise by 4.5% in Spain Amid Housing Crisis

Rental Evictions Rise by 4.5% in Spain Amid Housing Crisis

New data reveals an increase in rental evictions while mortgage-related evictions decline, highlighting ongoing challenges in the housing market.
Data released by the Consejo General del Poder Judicial (CGPJ) indicates an increase in rental evictions, also known as lanzamientos, by 4.5% in 2024 compared to the previous year.

This increase comes amidst a broader housing crisis in Spain, reflected in the statistics of economic impacts on judicial bodies.

In contrast, evictions due to mortgage defaults have decreased by 3.6% from the previous year, a development attributed by experts to strengthened safeguards in mortgage lending introduced after the 2008 financial crisis.

Analysts emphasize the growing number of rental evictions as a critical issue.

Rafael Pampillón, an economics professor at CEU San Pablo University, warns that this trend is expected to continue into 2025, driven by rising rental prices and mounting pressure on the housing market, exacerbated by recent rent control measures.

Regionally, the CGPJ's data shows that Catalonia has the highest number of rental evictions, totaling 5,539, followed by Andalusia with 2,712, the Community of Valencia with 2,517, and Madrid with 2,317.

In terms of evictions related to mortgage foreclosures, Catalonia again leads with 1,121 cases, followed by Andalusia with 994, the Community of Valencia with 915, and Murcia, which has entered the list with 423.

Catalonia, designated as a tense area for housing, has recently reported a 25.7% decrease in available rental apartments, equating to nearly 40,000 units in its first year under the Housing Law, which has declared 140 municipalities as tense housing zones.

Massimo Cermelli, a doctor in Economics and Business Management from the University of Deusto, comments on the impact of rent control measures, noting that such policies may ultimately drive landlords to withdraw properties from the rental market or repurpose them, leading to further destabilization.

He highlights a trend where the availability of rental units is decreasing, with more rooms being rented out than entire apartments.

The growth of the short-term rental market is further complicating the situation.

Cermelli identifies tenant delinquency as a primary reason for evictions, exacerbated by rising rental prices stemming from a limited supply of housing.

The CGPJ's report coincided with the release of the fourth edition of the Reference Index published by the National Institute of Statistics (INE), which indicates that rents for new leases signed after May 25, 2023, can increase by up to 2.08%.

Key real estate portals in Spain have reported double-digit increases in rental costs, with data from Idealista showing an 11% year-on-year increase in February, making the average rental price reach a historic high of 14 euros per square meter.

Economic experts agree that addressing the root causes of the housing crisis requires policies focused on increasing the supply of available housing.

Both Cermelli and Pampillón underline the necessity of providing greater support to housing developers and streamlining administrative processes to facilitate construction.
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