Spain's housing protesters blame 'vulture funds', but experts point to shortage of supply
Hundreds of people have set up a tent camp in Madrid to protest against Spain's housing crisis. Experts say the main driver is a shortfall in supply rather than the actions of investment funds.
Hundreds of protesters have spent a week camped in Madrid's Puerta del Sol square, demanding action on Spain's housing crisis. Many blame large investment funds, often called "vulture funds", as well as short-term rental platforms such as Airbnb.
What sparked the protests
The movement was triggered by the case of 87-year-old Maricarmen Abascal. An investment firm that had bought her home tried to persuade her to leave, then sharply raised her rent, which she could not pay. After a public backlash the company invited her to return, but she never did, and she died in hospital on Wednesday.
Prime Minister Pedro Sánchez recently presented a package of emergency measures against using housing for speculation, but Congress rejected it. He then called a snap election for next month.
Numbers and views
According to Idealista, rents in Spain have risen by an average of 84% in ten years, by 113% in central Málaga and by nearly 150% in Marbella. In a survey by the Centre for Sociological Research, 72% backed higher taxes on owners of 10 or more properties, 76% wanted limits on short-term tourist lets, and 40% supported expropriating empty homes.
Jorge Galindo of the Esade centre for economic policy says the data make it hard to know how many properties are held by such funds. Bank of Spain figures from 2024 show companies own only 8% of rental properties. In his view, rising rents are explained mainly by supply falling short of demand.
The Bank of Spain estimates a shortfall of about 750,000 homes, which could reach one million by 2028. Between 2021 and 2025 Spain gained around 1.2 million new households, yet fewer than half a million homes were built. The country has 3.8 million empty properties, but many are in depopulated rural areas. Weak wage growth has made matters worse: El País found that the average Spaniard's spending power is 5% lower than a decade ago.
The question now is whether a consensus on how to tackle the crisis can be reached.
