Spanish housing deficit to widen by 300,000 units by 2028

Spain has accumulated a housing deficit of approximately 755,000 units since 2021, which could expand by another 300,000 between 2026 and 2028, Deputy Governor Soledad Núñez reported.

Real residential property prices have accelerated to levels comparable to 2005.

Since 1980, real house prices in Spain have multiplied by 3.5 compared to 1.8 across the euro area, while real disposable income grew by a factor of 1.8. Núñez emphasized that mortgage underwriting standards remain prudent, preventing systemic risk buildup.

Household debt ratios remain 14 percentage points below the euro area average as credit expands in real terms and non-performing loan ratios decline across retail portfolios.

Spanish banks entered the second half of 2026 with a 16.2 percent return on equity and a CET1 capital ratio of 14.1 percent as of June.

Internal stress tests demonstrate that lenders would absorb an extreme energy shock with contained solvency impacts, despite potential loan impairment costs.

Geopolitical friction continues to elevate energy volatility, with euro area inflation reaching 3.3 percent in August.

In corporate financing, non-bank private credit is expanding in technology and manufacturing, though predominantly sourced from concentrated non-euro funds.