The China Mail - 'Quite sad': Renters turn to lottery in Spain's housing crisis

USD -
AED 3.672503
AFN 64.999737
ALL 80.761235
AMD 360.982284
ANG 1.789785
AOA 916.99979
ARS 1547.5057
AUD 1.425557
AWG 1.8
AZN 1.702002
BAM 1.737655
BBD 2.013789
BDT 124.482471
BGN 1.747831
BHD 0.377511
BIF 2987.543757
BMD 1
BND 1.278142
BOB 12.12307
BRL 5.462705
BSD 0.999876
BTN 94.576825
BWP 13.727633
BYN 2.983457
BYR 19600
BZD 2.010946
CAD 1.39491
CDF 2314.999913
CHF 0.81551
CLF 0.024533
CLP 965.559898
CNY 6.669794
CNH 6.66697
COP 3229.22
CRC 454.196116
CUC 1
CUP 23.996482
CVE 97.96631
CZK 21.60035
DJF 178.04787
DKK 6.64712
DOP 60.044158
DZD 136.019746
EGP 53.880905
ERN 15
ETB 164.108289
EUR 0.88927
FJD 2.241251
FKP 0.743037
GBP 0.741955
GEL 2.605004
GGP 0.743037
GHS 11.633527
GIP 0.743037
GMD 74.50319
GNF 8859.999526
GTQ 7.640777
GYD 209.490556
HKD 7.845285
HNL 26.874159
HRK 6.76901
HTG 130.993736
HUF 322.863993
IDR 18044.5
ILS 3.163304
IMP 0.743037
INR 94.36695
IQD 1515.805747
IRR 1883408.498647
ISK 121.490226
JEP 0.743037
JMD 158.490264
JOD 0.709019
JPY 158.220503
KES 129.979698
KGS 87.44983
KHR 4065.567945
KMF 441.000163
KPW 899.999961
KRW 1341.95501
KWD 0.31076
KYD 0.8332
KZT 451.907529
LAK 22510.972511
LBP 89536.844537
LKR 332.702525
LRD 169.971747
LSL 16.458322
LTL 2.95274
LVL 0.60489
LYD 6.411145
MAD 9.767223
MDL 17.932726
MGA 4516.054516
MKD 54.73088
MMK 2099.845134
MNT 3601.453525
MOP 8.0795
MRU 40.672394
MUR 46.749438
MVR 15.455025
MWK 1733.74558
MXN 18.55437
MYR 4.046803
MZN 63.910274
NAD 16.458322
NGN 1346.320199
NIO 36.791229
NOK 9.285805
NPR 151.327626
NZD 1.772905
OMR 0.384485
PAB 0.999964
PEN 3.451055
PGK 4.486835
PHP 62.85499
PKR 276.584484
PLN 3.90587
PYG 6062.867601
QAR 3.645272
RON 4.748506
RSD 104.583973
RUB 81.87644
RWF 1471.300315
SAR 3.756339
SBD 8.051718
SCR 13.793073
SDG 601.511276
SEK 9.749784
SGD 1.27613
SHP 0.745545
SLE 22.91035
SLL 20969.504398
SOS 571.481881
SRD 37.563979
STD 20697.981008
STN 21.767813
SVC 8.74869
SYP 13001.999685
SZL 16.449882
THB 33.396506
TJS 9.223662
TMT 3.51
TND 2.979992
TOP 2.40776
TRY 50.047495
TTD 6.77808
TWD 32.921971
TZS 2647.034989
UAH 45.533522
UGX 4104.696412
UYU 40.202925
UZS 11888.515735
VES 893.768982
VND 25682.5
VUV 119.655093
WST 2.783161
XAF 583.322981
XAG 0.018922
XAU 0.000241946801
XCD 2.70255
XCG 1.801979
XDR 0.707052
XOF 583.322981
XPF 105.958029
YER 236.175026
ZAR 16.364655
ZMK 9001.194858
ZMW 20.278266
ZWL 321.999592
SSP 5745.516508
MXV 2.087974
  • RYCEF

    0.4000

    19.71

    +2.03%

  • CMSC

    0.0000

    20.4

    0%

  • BTI

    0.4200

    56.05

    +0.75%

  • BP

    0.2800

    44.43

    +0.63%

  • RBGPF

    1.6000

    67

    +2.39%

  • RIO

    -0.1500

    94.41

    -0.16%

  • AZN

    -0.4300

    166.15

    -0.26%

  • GSK

    0.4600

    49.7

    +0.93%

  • BCE

    -0.4100

    20.56

    -1.99%

  • NGG

    -0.2500

    75.24

    -0.33%

  • VOD

    -0.0400

    16.58

    -0.24%

  • RELX

    -0.4500

    33.07

    -1.36%

  • BCC

    -0.5500

    76.59

    -0.72%

  • CMSD

    -0.0300

    20.27

    -0.15%

  • JRI

    -0.2500

    10.77

    -2.32%

'Quite sad': Renters turn to lottery in Spain's housing crisis
'Quite sad': Renters turn to lottery in Spain's housing crisis / Photo: © AFP

'Quite sad': Renters turn to lottery in Spain's housing crisis

Lorena Pacheco has hit the jackpot -- she won the right in a municipal lottery to rent a two-bedroom apartment and parking spot in one of Madrid's few social housing estates.

Text size:

Like a growing number of Spaniards, the 30-year-old auxiliary nurse and her partner, Sergio Encinas, have found themselves priced out of the real estate market as rents have soared due to insufficient supply.

For the past two years, the couple searched in vain for a place where they could afford to move in together. In the meantime they have been forced to live separately, each in their parents' homes.

"I felt a great euphoria, followed by a feeling of unreality," Pacheco said, recalling the moment she saw on social media that she had won an apartment in southern Madrid for 550 euros ($575) a month.

Around 44,000 people took part in the draw, which produced 63 other winners.

"Relying on luck to move out of your parents' house is a reality in this country," said Encinas, a 31-year-old salesman who makes about 1,200 euros "in a good month".

"It's quite sad, because you have a job, you work 40 hours a week and you realise that you can't afford to take care of yourself with your salary."

- Scarce social housing -

Rents in Madrid have risen by 82 percent in the past decade, according to the property listings website Idealista, mirroring increases in other major Spanish cities.

And social housing is very scarce. Madrid, a city of around 3.4 million people, has just 9,200 low-rent social housing units, one of the lowest figures in the European Union.

Madrid's right-wing city hall has a target of 15,000 social housing units by 2027.

This compares with 260,570 social housing units in Paris, which has a population of 2.1 million, and around 100,000 in Berlin, which has a population of 3.4 million.

Every quarter, Madrid puts 50 to 200 social housing flats up for grabs in a lottery that is open to people who meet income and residency criteria.

More than 80 percent of these flats go to people under 35 and families, Madrid's housing councillor Alvaro Gonzalez told AFP.

"These new tenants will never have to spend more than 30 percent of their monthly income on housing," he added.

But this lottery meets just one per cent of demand.

- Protests -

Only 90,000 new units are built in Spain every year while 120,000 new households are created, according to Idealista figures, leading to a housing shortage that has caused rents to soar.

A boom in holiday lets on platforms such as Airbnb has worsened the housing shortage, sparking large protests across the country and pushing housing to the top of the political agenda.

Rodrigo Sainz, a circus arts teacher in his 30s, saw the monthly rent for the Madrid apartment he shares with two others rise by 150 euros in October.

The three launched a "partial rent strike" in response, refusing to pay the increase.

"We are doing this so that everyone can have access to housing in a dignified way," he said. "Housing should be a right, it should not be a market commodity which is subject to speculation."

Socialist Prime Minister Pedro Sanchez has unveiled several measures to try to ease the housing crisis, including higher taxes on holiday lets and the acceleration of social housing construction.

But Idealista spokesman Francisco Inareta warned that some of the government's "coercive measures" had driven landlords out of the long-term rental market, hurting "the young and disadvantaged".

"Landlords are not the problem, they are part of the solution. It is therefore crucial to approach the market pragmatically," he said.

Q.Yam--ThChM