It would work, but it also requires curbing the extra demand that is generated by foreigners moving into the city and scooping up the housing from the locals.
> I might be naive, but I’d assume that the solution is to build more housing to increase the supply instead of curbing the demand?
Spain is not the US. Neither Spain nor any other Mediterranean country has large surface area that could accommodate housing demand at such high levels - there is already scarce land that you can build on across the Mediterranean as there are limited shorelines and deltas that were created by rivers etc, and the rest is immediately mountainous or hilly landscape that is very difficult to build on.
These countries could easily cope with their local demand, but allowing foreigners to buy housing caused a large influx of foreigners exacerbating the demand for housing and crowding out these places way beyond their capacity. The investment funds that scoop up housing to profit worsen the situation.
Maybe the US could handle such a demand with its gigantic surface area - solely Texas is larger than ENTIRE Western Europe, mind that. Or Russia. Or China. But other countries in the world, especially the Mediterranean ones, don't have the space to even start comparing with those.
The only solution is to limit the demand to the carrying capacity of each locale, province and country.
> I might be naive, but I’d assume that the solution is to build more housing to increase the supply instead of curbing the demand?
Spain is not the US. Neither Spain nor any other Mediterranean country has large surface area that could accommodate housing demand at such high levels - there is already scarce land that you can build on across the Mediterranean as there are limited shorelines and deltas that were created by rivers etc, and the rest is immediately mountainous or hilly landscape that is very difficult to build on.
These countries could easily cope with their local demand, but allowing foreigners to buy housing caused a large influx of foreigners exacerbating the demand for housing and crowding out these places way beyond their capacity. The investment funds that scoop up housing to profit worsen the situation.
Maybe the US could handle such a demand with its gigantic surface area - solely Texas is larger than ENTIRE Western Europe, mind that. Or Russia. Or China. But other countries in the world, especially the Mediterranean ones, don't have the space to even start comparing with those.
The only solution is to limit the demand to the carrying capacity of each locale, province and country.