Spain and Germany have traditionally been at opposite ends of the spectrum in Europe when it comes to owning or renting a home. 76 per cent of the Spanish population are owner-occupiers while Germany has the second lowest share of homeowners of all OECD countries at approximately 45 per cent.

However, recently the Spanish market is moving, ever so slowly, towards the German model while in the latter’s capital, Berlin, an increasingly affluent population is looking to buy rather than rent.

So how has this change come about? The gradual shift towards renting in Spain is a general trend caused by rising house prices and high youth unemployment, which have limited those who can buy, especially among the younger generation.

Related to this are rising population figures with housing demand unable to keep up with supply. As a result, the proportion of people renting their homes has increased by 17.3 per cent nationally. In Madrid renting increased by 8.1 per cent and in Barcelona by 44 per cent in the last six years.

In Berlin, transaction volumes for apartments and houses climbed to a new record high in 2019 to reach almost €7.8 billion. Demand is driven by an increase in the affluence of the population and the rising trend towards home ownership for households with higher income levels and fewer, if any, children. Over the past decade the average household disposable income in Berlin has increased by 25 per cent and is forecast to rise by a further 9 per cent by 2025.

So as a common theme, we are seeing that as long as people have the money to spend on housing they are more likely to buy than rent but factors outside their control such as limited stock are turning many Spaniards into renters and, given the availability of suitable rental apartments in the German capital, affluent Berliners into home owners.

Further information

Contact Eri Mitsostergiou or Hugo Thistlethwayte

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