Spain’s Housing Minister has accused Madrid’s regional government of trying to attract more foreign investors to purchase real estate in the capital.
During a recent press conference in Brussels, Spanish Housing Minister Isabel Rodríguez accused Madrid’s regional government, headed up by Isabel Díaz Ayuso, of trying to draw in more foreign investors to purchase real estate in the capital instead of looking for ways to solve the country’s property crisis.
Rodríguez accused Madrid of “promoting” properties to foreign investors for “speculative purposes”.
She claimed this is completely the opposite of what Pedro Sánchez’s government is trying to do, which is to guarantee “affordable housing” for all citizens.
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“Those who promote or call on investors to buy housing blocks in bulk,” she stated, “are going against state priorities.”
“It’s no longer just two, three, or four homes, but practically entire neighbourhoods in Madrid,” she added. Because of this, she believes that foreign investors are depriving residents of their right to housing.
She reiterated that she wants to attract investment linked to the creation of more affordable housing, “but not for speculative purposes”.
“I am calling on investors and on social housing developers to build affordable housing”, the Socialist minister added, explaining that these investors will have the support of the Spanish government in the form of aid and financing.
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At a European level, Rodríguez emphasised that there is room for stronger action against speculation. She believes the problem is global and requires a coordinated response.
“We believe it is important that the EU continues to provide member states with tools to prosecute the fraud we are seeing in short-term accommodation, including temporary accommodations and room rentals,” she said.
To give examples Rodríguez spoke about measures that the Spanish government has already passed such as changing regulations on short-term tourist rentals, removing illegal properties from the market as well as scrapping the golden visa, which gave foreigners residency if they invested €500,000 in property in Spain.
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The government has also proposed limiting non-resident, non-EU property buyers by introducing a 100 percent tax, essentially making them pay double the amount.
A recent study by real estate agency Lucas Fox revealed that foreigners buy over 60 percent of luxury homes in Spain.
Earlier this year, a report from the College of Registrars showed that foreign buyers are purchasing Spanish properties at higher rates than ever, with notable growth seen particularly in Mexican and American investors in Madrid.
Real estate agencies in Madrid have noted the increase in North Americans buyers as well as a rise in the number of tourists from there due to the surge in air routes.
The ruling Socialists 2023 reforms to the country’s Housing Law have been widely considered a failure as they haven’t stopped rents and properties prices in Spain from spiralling.
