What if the Real Estate Speculator Was the Spanish State?

Spain’s housing crisis has more culprits than we think. While investment funds, developers, and large property owners are often blamed, there is a silent actor involved in every real estate operation—one that, in many cases, fuels the problem: the State.

How Does the State Drive Up Housing Costs?

1. Withholding Developable Land

A large amount of potentially developable land is blocked due to administrative decisions. This artificial scarcity drives up land prices, which in turn increases the cost of new homes.

2. Inflated Cadastral and Reference Values

The cadastral value and the new reference market value directly affect taxes such as property tax (IBI), transfer tax, and municipal capital gains. When these values are inflated, taxes increase… and so do sale and rental prices.

3. A Tax Model That Punishes Instead of Incentivizing

Housing is treated more as a revenue source than a basic right. This discourages both buyers and owners who might otherwise offer affordable rentals.

Real Solutions Exist

The situation is not irreversible. Here are some key measures that could change the current dynamic:

• Responsibly release developable land, especially for affordable housing projects and cooperatives.
• Review cadastral and reference values based on independent, up-to-date technical criteria.
• Promote urban planning transparency, avoiding institutional speculation.
• Provide tax incentives to those who renovate and rent out homes at accessible prices.
• Increase the public housing stock for rent, following successful models in Nordic and Dutch countries.

Why Does This Matter?

As citizens, buyers, or sellers, we must demand a fairer system. And as real estate professionals, we also have the responsibility to speak clearly about what’s really happening in the market.

Looking for a Home in La Axarquía? Want to Sell Without Middlemen?

I’m Israel Huertas, a real estate agent working in Torrox, Nerja, and Frigiliana. I help you buy or sell with honesty, deep market knowledge, and full transparency. I work directly with property owners and individuals—no games, no abusive commissions.

📩 Contact me at israel@israelhuertas.com or visit my website to explore the latest properties available.

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