Squatters and Market Pressures as a Fil Rouge between Spain and Italy

Spain’s housing market is under growing pressure as tensions escalate between homeowners and squatters. Bloomberg recently highlighted the surge in illegal property occupations, underscoring a contentious issue that has become increasingly visible across the country.

The economic downturn and high unemployment have worsened the housing crisis, contributing to a rise in squatting incidents. Hence, homeowners report frustration with legal complexities and prolonged eviction processes, often leaving them unable to reclaim their properties for months or even years.

Critics point out that the current legal framework disproportionately favors squatters, making it difficult for property owners to take swift action. The government faces mounting pressure to reform housing policies and strike a balance between protecting homeowners’ rights and addressing housing insecurity for vulnerable residents.

Proposals are underway to improve the situation, but experts warn that finding a solution that satisfies all parties will be a complex challenge for policymakers. Nevertheless, as the debate over property rights continues, Spain’s housing crisis remains a critical socio-economic issue with far-reaching consequences for both tenants and landlords.

Illegal property occupations are also a serious challenge in Italy. The phenomenon represents a significant problem, with recent estimates indicating around 50,000 cases. Of these, about 30,000 involve public residential housing (ERP), while the remaining 20,000 are properties owned by private individuals or organizations.

The issue is most pronounced in big cities such as Palermo, Rome, Genoa, and Catania, where pressures on the housing market and a shortage of affordable solutions contribute to these occupations.

In the ERP context, as early as 2016, Federcasa estimated that around 48,000 public housing units were illegally occupied out of over 750,000, representing 6.4% of the available stock. The urban situation is particularly critical in Rome, with 82 illegally occupied buildings in 2019, and in Palermo, where more than 3,000 apartments are affected.

Alongside squatting, illegal construction further exacerbates the problem: it is estimated that in Italy approximately 15 unauthorized homes are built for every 100 legally approved.

This combination of demographic pressure, regulatory gaps, and weaknesses in the real estate market makes it difficult to ensure the legality and security of the country’s housing stock.

Benedetta Zimone