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23 March 2025

Spain Faces Growing Housing Crisis Due To Squatting

As over 20,000 homes are occupied, the implications for homeowners and the market are dire.

Spain is currently grappling with a pressing housing issue, as a recent analysis reveals that more than 20,000 homes for sale in the country are occupied by squatters. According to real estate portal Idealista, this accounts for approximately 2.6% of the properties being sold, underscoring a growing phenomenon that poses significant challenges to the housing market.

On March 23, 2025, Idealista’s spokesperson, Francisco Iñareta, elaborated on this issue, stating, "The data highlights the relevance of this phenomenon, which is a burden for the recovery of supply." Indeed, as this illegal occupation persists, it inhibits the ability of homeowners to protect their property and diminishes the number of available homes for rent.

The statistics are striking: in Gerona, a region in northeastern Spain, 8.8% of the houses on the market are currently occupied by squatters, making it the area with the highest incidence. Closely following are Murcia at 5.5% and Seville at 4.7%. Other affected regions include Almeria (3.9%), Malaga (3.8%), and Barcelona (3.5%). The phenomenon is increasingly recognized as a significant issue, impacting the dynamics of Spain's saturated housing market.

In major urban centers, the trend is even more pronounced. For instance, during the fourth quarter of 2024, Barcelona recorded 723 homes classified as squatted, representing 7.6% of the total homes available in the province. Madrid wasn't far behind, accounting for 644 such homes—or 2.6% of its market. These figures reflect that a disproportionate share of squatted properties is concentrated within a few cities, contributing to rising tensions in the housing market.

Amidst this situation, several other capitals have reported concerning rates. In Valencia, 3.4% of homes for sale are squatted, while Palma reports 2.9%. The provincial capital cities of Bilbao and San Sebastian exhibit notably lower incidences, with 1% and 0.3% of their markets occupied, respectively. In stark contrast, Soria holds the title for the lowest incidence, where only 0.1% of homes are occupied by squatters.

As the housing crisis escalates, the trend of squatting raises pertinent questions about property rights and legal protections for homeowners. Iñareta articulated concerns about the minimization of the squatting phenomenon, which fosters a climate of uncertainty for property owners seeking resolution. These figures not only illustrate the extent of the challenge but also the urgency of addressing the underlying issues that contribute to this growing crisis.

The implications of squatting extend beyond immediate concerns. The aggregate data reveals that these eight major cities alone account for a staggering 71% of all squatted homes available for sale, indicating a need for focused action on part of municipal governments across the spectrum. In light of these statistics, regional authorities may need to reevaluate current housing policies and consider proactive measures to bolster protections for property owners and mitigate the effects of squatting.

In sum, the growing issue of squatters in Spain's housing market is a complex interplay of legal, social, and economic factors that requires urgent attention. While the statistics paint a stark picture, they also highlight the pressing need for a multifaceted approach to safeguard the interests of homeowners and ensure the sustainability of Spain's housing market going forward.