Madrid has the most empty homes in spain

Photo: David Hurt

Madrid has the most empty new homes in Spain, highlights a new study, which compares the market conditions in the country's provinces.

The report from Tinsa shows that the capital city has 35,316 unsold new homes, far higher than the 23,493 recorded in Valencia. Murcia comes close behind with 22,862 empty new homes, followed by Barcelona (22,226) and Alicante (18,362).

One of the major factors in the housing market's health going forwards, though, particularly in terms of supply, is the unemployment rate among potential local buyers: Spain is plagued by high levels of unemployment overall, which means that many cannot afford to buy property.

Alicante's coastal towns have an average unemployment rate of 26 per cent, while Barcelona's stands at 27 per cent. Murcia has a much higher level of unemployment at 32.7 per cent, just ahead of Valencia's 30 per cent. In tourist hotspots, such as Alicante and Murcia, foreign buyers are crucial to snapping up stock as affordable holiday homes or potential rental investments.

While Madrid has the largest unsold inventory, though, the capital is also the healthiest in terms of the economy: the city has a low level of unemployment of around 15 per cent, which has prompted construction of urban developments to begin once more.