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Barcelona / Madrid, December 24, 2025 — Spain’s leading real-estate developers are warning public authorities that the lack of buildable land and slow urban-planning processes are blocking new housing developments, worsening the housing affordability crisis across the country.
According to several industry reports, Spain is facing a growing imbalance between housing supply and demand. Although there is strong demand for new homes and solid investor interest, the difficulty of converting land into buildable plots is preventing projects from moving forward.
A recent BBVA Research report highlights that limited land availability and complex regulation are two of the main reasons why new housing supply in Spain remains well below what the market needs:
https://www.bbvaresearch.com/wp-content/uploads/2024/11/Low-supply-of-housing_Eng.pdf
In large metropolitan areas such as Madrid and Barcelona, the situation is even more critical. In Madrid, analysts warn that, under current planning rules, available land for residential development could be exhausted within the next decade — pushing prices even higher.
https://www.iberian.property/news/residential/madrid-will-have-no-land-left-to-build-housing-on-from-2035-onwards/
Developers point out that many urban-planning processes take 10 to 20 years to be completed, creating a severe bottleneck that prevents the market from responding to real housing demand.
“Without ready-to-build land and faster administrative procedures, it is impossible to increase supply and stabilise prices,” industry representatives say.
This shortage is already visible in construction figures. Current housing development in Spain covers only around 20% of real demand, especially in high-growth urban areas.
https://www.lavanguardia.com/encatala/20250810/10964099/promocio-pisos-s-estanca-i-nomes-cobreix-20-demanda-actual.html
Calls for urgent reform
In response, developers are calling for a deep reform of land-use law and urban-planning procedures to speed up the transformation of land into buildable plots and attract investment. They also urge greater cooperation between public authorities and the private sector to unlock new residential developments, particularly affordable housing.
Unless these changes are implemented, the industry warns that the shortage of buildable land will continue to restrict housing supply, push prices higher and make it even harder for families and young people to access a home.
