The real estate market is about to undergo a transformation: young people are going to switch from renting to buying en masse.
The latest report from the real estate agency Forcadell makes this clear. In Catalonia, the number of homes purchased by people under 40 is set to skyrocket. Where are they getting the money? From their parents. The report states it bluntly: next year we will see the largest transfer of capital from parents to children in the country's history.
Economist Gonzalo Bernardos, who participated in the report's presentation as a professor at the University of Barcelona, confirms this. Demand is no longer coming from the upper or middle classes. Now it's young people from the lower middle class who want to buy.
Despite the difficulties, young people are increasingly opting for buying. The reason is simple: renting is so expensive that mortgage payments are usually lower. Paloma Taltavull, Professor of Applied Economics at the University of Alicante, sums it up well: although there are still no official statistics, more and more young people are buying because it's more advantageous for them.
Antonio Pérez de la Torre, CEO of Alfa Inmobiliaria, also acknowledges that young people, both Spanish and foreigners settling in Spain, are already a significant part of the current demand. However, for many from the lower middle class, buying remains complicated. Although banks have improved their terms, the main obstacle is the down payment: banks only provide 70% of the property's value; the rest has to come from their own pockets, their parents' money, or wherever they can find it.
So how do young people in Catalonia manage to buy? It's easier now if they only take out a mortgage for less than 80% of the property's value. Paloma Taltavull explains it clearly: what matters is the ability to pay and securing that extra financing, whether from family or other sources. This way, the monthly payment is lower, and it's easier for the bank to approve the loan.
At Alfa Inmobiliaria, they explain that young people are primarily buying with mortgages, which now have interest rates around 2%. Much better than years ago. But the key remains parental support, both for the down payment and as guarantors for the loan.
In short, parents are the driving force behind this change. Without their support, most young people wouldn't be able to take the plunge and buy an apartment. They provide the down payment or act as guarantors, and that opens doors that were previously closed.
Furthermore, banks are more willing to lend in 2025. Low interest rates and competition among banks mean they are granting more mortgages, even to those they previously rejected. This combination of family support and improved banking conditions has boosted the housing market for young people.
But be aware, starting in 2025, the Spanish Tax Agency (Hacienda) will be much more vigilant regarding transfers and loans between parents and children. Antonio Pérez de la Torre warns that everything now needs to be formalized: loan agreements must be signed, declared using Form 600, and transfers must be documented with clear bank statements. Otherwise, the Tax Agency may consider it a donation, subject to taxes and potential penalties. This complicates things a bit more for families who want to help, but it's not stopping the movement.
Paloma Taltavull puts it plainly: buying a house isn't easy, especially for young people. It requires significant savings or prior investments, and almost always necessitates family support or some form of public assistance for the down payment. "Renting would be a good option for those starting a family, if there were enough homes," she points out. The real problem is that there's very little supply in both the rental and sales markets, and even less if we're looking for large properties. Thus, finding a home becomes quite a challenge. That's why, for people with lower incomes, renting is often the most realistic option. According to Taltavull, public rental housing is essential in housing policy if we truly want to help these households.
