The Iberian Peninsula and the housing crisis the paradox between urban saturation and abandonment of rural areas in Portugal and Spain.
People searching for jobs in Spain.

The Iberian Peninsula and the housing crisis the paradox between urban saturation and abandonment of rural areas in Portugal and Spain.

Original Article in portuguese: https://www.incomunidade.pt/peninsula-iberica-e-a-crise-da-moradia-saturacao-urbana-e-abandono-das-areas-rurais-em-portugal-e-espanha-wesley-sa-teles-guerra/

The Iberian Peninsula has been witnessing an ongoing process of deindustrialization in various regions of Portugal and Spain, whether due to Asian competition, the relocation of production centers to third countries with lower operating costs, or the centralization of production in large metropolitan areas such as Porto, Lisbon, Braga, Madrid, Barcelona, and Bilbao.

This has resulted in the concentration of the population in these major cities and the escalation of problems stemming from urban occupation, amid a continuous loss of inhabitants in inland regions.

Population density map of the Iberian Peninsula.

This movement has triggered a series of social and economic issues, including rural exodus, increased youth migration to other parts of Europe, and a lack of job opportunities in small towns, generating an endless cycle of scarcity and increased inequality.

The housing crisis has also intensified, with an exorbitant increase in the value per square meter in major cities due to demographic mobilization and rural exodus, making them inaccessible to a large part of the middle-income population. The phenomenon of "Labor Poverty" (where employed individuals are unable to meet basic living costs) has become a constant in the major Iberian cities, affecting both the local population and immigrants.

The lack of efficient projects for the revitalization and retention of rural areas has contributed to the demographic depletion of Spain and Portugal, creating true demographic deserts in both countries. On the other hand, the growing mismatch between the cost of living and average wages has led to a worrying trend of impoverishment and economic difficulties for a significant portion of the population. While the countryside may offer affordable housing, there are no job offers or services, and in cities, even if there are employment opportunities, they are not sufficient to sustain the cost of living, creating a paradox where saturated cities coexist with others that literally pay you to live in them.

Brazilian immigrants living in huts in Carcavelos, Cascais.

The consequences of this widespread crisis are profound and long-lasting. In many rural areas, the lack of infrastructure and basic services, such as hospitals and schools, has left local communities in a state of neglect and isolation. The deterioration of living conditions in these regions has triggered a vicious cycle of depopulation and lack of investment, further exacerbating the situation.

Furthermore, not only does the demand for housing per square meter increase in major cities, but also the demand for public services, saturating and reducing the levels of service delivery.

Urban saturation and abandonment of rural areas in Portugal and Spain": Demonstrations in Lisbon over the housing crisis. By Joana Azevedo Viana /RR

Immigration, which for many was seen as a solution, has become part of the problem, as a significant portion of communities from other countries concentrate in major cities due to the lack of opportunities in the interior.

Spain, in particular, has been affected by this demographic depletion, resulting in a significant imbalance between urban and rural regions. Many rural areas are facing an existential crisis, with youth migrating to more developed urban centers and other countries in search of better opportunities. Similarly, some regions of Portugal are experiencing a similar problem, with the depopulation of rural areas and the consequent loss of local traditions and culture.

If effective measures are not taken to address this crisis, the Iberian Peninsula risks losing a significant part of its identity and economic potential, as well as its population, giving way to large depopulated areas lacking economic activity and potential for development, a structure more akin to that of emerging nations than developed countries. It is crucial to develop comprehensive and sustainable strategies that encourage balanced development throughout the territory, promoting economic opportunities and dignified living standards for both urban and rural areas. Investments in infrastructure, education, health services, and incentives for creating local jobs are essential to reverse the current trend of depopulation and abandonment of rural areas.

Several villages in Spain and Portugal are abandoned
"The Iberian rural area calls for a specific tax and subsidy system to generate population retention and new opportunities for the younger population." Wesley S. T. Guerra

It is crucial for the governments of Portugal and Spain to recognize the urgency of this situation and implement comprehensive policies that encourage equitable and sustainable growth throughout the Iberian Peninsula's territory. The future of the region depends on an integrated and collaborative approach that values and revitalizes both urban and rural areas, promoting a healthy balance between economic development and the preservation of local traditions and quality of life. The time to act is now, before the crisis reaches irreversible proportions, as immigration plays a crucial role in this process; otherwise, it will lead to increased social dissatisfaction, urban tensions, service imbalances, and the lack of homogeneous development in both countries.


Wesley Sá Teles Guerra, holds a degree in International Negotiations from the Centre de Promoció Econ?mica del Prat de Llobregat (Barcelona), a BA in Business Administration from the Catholic University of Brasilia, a postgraduate degree in Political Science and International Relations from the S?o Paulo School of Sociology and Politics Foundation, an MBA in International Marketing from the Massachusetts Institute of Business, MBA in Global Partnerships from ILADEC, Master's Degree in Social Policies with a specialization in Migration from the University of A Coru?a (Spain), Master's Degree in Management and Planning of Smart Cities from the Universitat Carlemany (Andorra) and PhD candidate in Sociology and Changes in Contemporary International Society.

He has worked as a paradiplomat and specialist in international cooperation and smartcities for the Catalan Competitiveness Agency (ACCI? - Generalitat de Catalunya), and is currently a partner at the Galician Institute for International Analysis and Documentation (IGADI) and the Galician Observatory of Lusophony (OGALUS). He also works as coordinator of the Economics, Science and Technology area at CEDEPEM - UFF.

He is the founder and director of CERES - Center for International Relations Studies, a member of the Smart City Council, the IAPSS - International Association for Political Sciences Students, the European Consortium for Political Research, REDESS - Center for Strategy and Intelligence in International Relations and a collaborator with ANAPRI.

Author of the books "Cadernos de Paradiplomacia" (2021) and "Paradiplomacy Reviews" (2021), as well as participating in the book "Experiências de Vanguarda, no ensino nos países lusófonos" published in 2021 by CLAEC and organized by Dr. Cristiane Pimentel.

Professor, writer and expert: [email protected]

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