Immigration: Spain as a unique case in Europe
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The topic of migrant regularization has once again become a major point of discussion — not only within Spain, but also across international media. This is no coincidence: Spain’s current migration policy has a direct impact on demographics, the economy, and the real estate market.
Between 2005 and 2025, Spain’s population increased by approximately 5 million people, from around 44 million to 49.1 million.
This represents one of the highest demographic growth rates in the European Union and is highly atypical for a country with one of the lowest birth rates in Europe.
“The key point is that virtually all of this growth has been driven by migration. Without it, Spain’s population would have declined due to aging and low birth rates.”
— Pavel Maslov, CEO of Estate Barcelona
Over these 20 years, 7–8 million migrants have passed through Spain. Some left the country, some changed their legal status, and others compensated for the natural population decline. It is precisely this constant migration flow that has shaped Spain’s current demographic profile.
Who is driving population growth today
According to estimates by the Funcas think tank, as of early 2025:
• more than 1.3 million people live in Spain with a valid residence permit;
• around 400,000 people are awaiting a decision on citizenship;
• approximately 840,000 people are in an irregular situation, with about 90% originating from Latin America.
A significant share of new residents already speaks the language, integrates quickly into society, and enters the rental market almost immediately. Following legalization, many also move into the property purchase market.
At the same time, the government is implementing one of the largest regularization programs in recent years: around 500,000 migrants are being granted legal status. For the real estate market, this translates into straightforward but uncompromising arithmetic.
An increase of over two million residents within just a few years, combined with slow supply growth, has created a structural housing shortage, particularly in major cities, metropolitan areas, and coastal regions.
This shortage is rooted largely in the 2008 financial crisis, after which construction volumes fell sharply and have never recovered at a pace comparable to population growth.
Additional pressure comes from changes in migrants’ legal status. Legalization provides access to the banking system and mortgage financing, allowing part of the population to move from renting into homeownership.
As a result, the market is experiencing:
• sustained pressure on the rental sector;
• increased competition for available properties;
• continued price resilience, even during periods of economic uncertainty.
Mass migrant regularization is not only an economic measure, but also a political one.
According to analysts, it forms part of the broader strategy of the left-wing parties currently in power and is aimed at expanding the electoral base through the legalization of new residents.
