The Bank of Spain has revised its economic forecasts, projecting growth of 2.6% this year and 2.2% in 2027. Despite this upward revision, inflation expectations have risen to 3.9% for the current year and 3.7% for 2027, according to Director David López Salido.
The central bank warns that the housing supply deficit, currently at 750,000 units, will reach one million by 2028. Although annual housing starts rose to 120,000 recently, the three-year completion lag means no significant supply improvement is expected soon.
Addressing the crisis, the government processed two rental regulation decrees via emergency routes after a prior rejection by Congress. These measures now await Permanent Deputation approval as the market struggles to meet demand with limited annual stock.