According to the latest economic study by one of Spain’s leading banks, the Caixa Catalunya, buying a new flat in Madrid would cost over 40% of household income. This comes at a time when 60% of families can’t even afford mortgages totalling 40% of their income.
Madrid is the most expensive place to buy a property in Spain followed by the Basque Country in second place and the Balearic Islands in third place.
In Catalonia it is estimated that families need to dedicate around 30% of their net household income to paying their mortgage, a similar figure in Asturias and Valencia.
Other places in Spain where buying a property requires less than 30% of total net income are Extremadura Galicia, Castilla-La Mancha, Castilla-León, Murcia, Navarra, La Rioja, Aragón, Cantabria and the Canary Islands.
A relatively strong economy, low interest rates and demand outstripping supply are just some of the explanations for the recent property price boom. However this has led to a situation where property prices have risen disproportionately in relation to average salary levels over the past few years.
The reality of this situation means that a high percentage of households throughout the country have no chance of getting onto the property ladder.