New documentary shows how absurd Spain's housing market has become
A documentary denounces the absurd extremes of Spain's property market: inflation, thousands of empty homes and stagnant wages.
English · Original discussion in Spanish · Published
The absurd extreme of Spain's property market
In Málaga, an entire building in a run-down area sells for 2.2 million euros. Meanwhile, in a town of 15,000 inhabitants in inland Galicia there are more than 3,000 empty flats. The documentary "EL MERCADO INMOBILIARIO SE NOS HA IDO DE LAS MANOS" ("The housing market has slipped out of our hands") portrays a paradox that is no longer anecdotal: housing has become a luxury for the majority, while tent encampments spread through parks across the country. The economic analysis behind this situation reveals a perfect storm of monetary policy, taxation and territorial imbalance.
Draghi's legacy: monetary inflation and prices
The ECB's easy-money policy, with its "whatever it takes", has been singled out as one of the triggers. Money printing without productivity gains has eroded the euro's purchasing power. As a summary of the argument: if the same goods are produced but twice as much money circulates, prices double. In the property market, this has driven up asset prices while wages fail to keep pace. One analysis points out that if a flat changes hands just four times in 15 years, taxes (transfer tax, capital gains tax on land) already account for 40% of the final price.
Empty homes vs. unmet demand
The territorial contrast is brutal. While demand soars and prices spiral in the big cities, inland Spain has a massive stock of empty homes. One specific case: a Galician municipality of 15,000 inhabitants has 3,000 unused flats, yet there is no rental supply. The lack of jobs in those areas perpetuates the imbalance. Workers concentrate in Madrid, Barcelona, Bilbao or Valencia, creating unsustainable density and prices impossible for most people.
The debate over who is to blame
90% of Spain's housing stock is owned by small landlords, which qualifies the narrative of investment funds as the sole culprits. However, tax pressure, bureaucracy and legal insecurity discourage affordable renting. On the other hand, the Spanish middle class, measured by OECD standards, is in fact working class: it lives on the edge, with no savings, two paycheques away from disaster. The documentary and the debate stress that the growth model based on construction and credit has hit its ceiling.
The open question is whether there is the political will to rebalance the territory, reform taxation and tackle the monetary root of the problem, or whether the absurd extreme will keep getting worse.
Related discussions in the forum
In Málaga, an entire building in a run-down area sells for 2.2 million euros. Meanwhile, in a town of 15,000 inhabitants in inland Galicia there are more than 3,000 empty flats. The documentary "EL MERCADO INMOBILIARIO SE NOS HA IDO DE LAS MANOS" ("The housing market has slipped out of our hands") portrays a paradox that is no longer anecdotal: housing has become a luxury for the majority, while tent encampments spread through parks across the country. The economic analysis behind this situation reveals a perfect storm of monetary policy, taxation and territorial imbalance.
Draghi's legacy: monetary inflation and prices
The ECB's easy-money policy, with its "whatever it takes", has been singled out as one of the triggers. Money printing without productivity gains has eroded the euro's purchasing power. As a summary of the argument: if the same goods are produced but twice as much money circulates, prices double. In the property market, this has driven up asset prices while wages fail to keep pace. One analysis points out that if a flat changes hands just four times in 15 years, taxes (transfer tax, capital gains tax on land) already account for 40% of the final price.
Empty homes vs. unmet demand
The territorial contrast is brutal. While demand soars and prices spiral in the big cities, inland Spain has a massive stock of empty homes. One specific case: a Galician municipality of 15,000 inhabitants has 3,000 unused flats, yet there is no rental supply. The lack of jobs in those areas perpetuates the imbalance. Workers concentrate in Madrid, Barcelona, Bilbao or Valencia, creating unsustainable density and prices impossible for most people.
The debate over who is to blame
90% of Spain's housing stock is owned by small landlords, which qualifies the narrative of investment funds as the sole culprits. However, tax pressure, bureaucracy and legal insecurity discourage affordable renting. On the other hand, the Spanish middle class, measured by OECD standards, is in fact working class: it lives on the edge, with no savings, two paycheques away from disaster. The documentary and the debate stress that the growth model based on construction and credit has hit its ceiling.
The open question is whether there is the political will to rebalance the territory, reform taxation and tackle the monetary root of the problem, or whether the absurd extreme will keep getting worse.
Related discussions in the forum
- Sarah Santaolalla: “Qué pena que vayan a ganar los malos.Los malos jueces, los malos periodistas, los malos empresarios, los malos policías.. · 75 replies
- Se está liando parda en Teherán · 80195 replies
- Ignacio Escolar de el diario.es suspende por sens vez la carrera de periodista. Si escusa que no tiene tiempo. · 93 replies
- MUNDO INSÓLITO: El fenómeno de los "Famosos Rellenitos Harinas" que, tras perder peso, pierden toda su gracia y dejan de molan (fotos de ejemplos inside). · 124 replies
Also available in: Deutsch
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (25 replies).
More summaries
-
Spain's housing market stalls: sales fall 8%
Housing sales in Spain drop 8% for a second month. The market stalls due to unaffordable prices and restricted supply.
-
Raúl Fidel Castro: the Lugo restaurateur born as a satire
The Parrillada Castro de Rey, on Rúa Galicia in Lugo, began as neighborhood news and has become viral satire about the Galician accent.
-
Social housing in Spain: who makes the list and who foots the bill
Social housing at 800-1,100 euros a month, funded through income tax: who gets on the list, who decides, and why the scoring system has sparked anger.
-
Morocco, the main culprit named in Spain's Ceuta and Melilla crisis
The exchange of ambassadors between Morocco and Israel weeks after the Ceuta episode fuels suspicions about who is really pulling the strings.
-
Fires at French high schools: Marseille, Nantes, Rouen and Bordeaux
Fires break out at high schools in Nantes, Rouen and Saint-Denis, a bus is burned in Marseille and firefighters come under attack: unrest spreads across France.
-
Puerta del Sol protest camp: housing cause or election campaign ploy?
The Sol protest camp, housing and the election campaign: the Tenants' Union defends its case on laSexta as 500 riot police are announced for Friday.