Authored by the expert who managed and guided the team behind the Spain Property Pack
Everything you need to know before buying real estate is included in our Spain Property Pack
What is happening in the Basque Country’s real estate market? Are prices on the rise or decline? Is Bilbao still a magnet for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the region, from San Sebastián to Vitoria-Gasteiz and beyond. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Basque Country real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
1) The Basque Country will see more foreign investment as its quality of life gains recognition
The Basque Country is seeing a steady rise in foreign direct investment, with €16.7 billion coming in from 2014 to 2022 and another €1.6 billion in 2023.
People are drawn to the Basque Country for its high quality of life, reflected in its impressive UN Human Development Index score of 0.936. This makes it a stable and pleasant place for investors. The region is also boosting its appeal by expanding its Technology Park network and developing an urban innovation district in Bilbao.
Tourism is booming here, with a noticeable uptick in visitors and overnight stays, especially from abroad. This growing international interest is likely to attract more foreign investors who see potential in the region's expanding tourism sector.
The Basque Country is also becoming a hotspot for digital nomads and expatriates. With plenty of coworking spaces and special accommodation discounts for remote workers, it's a great place to live and work. The Basque Government's initiatives, like the HanHemen e-diaspora platform, are helping to connect Basque diasporic citizens and promote the region's quality of life and business environment.
Foreign investment is expected to keep rising as more people recognize the Basque Country's unique blend of lifestyle and opportunity. The region's efforts in infrastructure and innovation are making it an increasingly attractive destination for investors.
As the Basque Country gains recognition for its quality of life, it's becoming a magnet for those looking to invest in a region that offers both stability and growth potential.
Sources: Business Focus, Cardiff University, Eustat, Bizkaia Talent
2) Property prices on Bilbao's outskirts will rise moderately with better transport links easing commutes
The outskirts of Bilbao are seeing a moderate rise in property prices thanks to better transportation links.
One major boost came from the European Investment Bank's €200 million loan, which funded a new road tunnel under the Nervión River estuary. This tunnel offers a much-needed alternative to the busy Rontegi Bridge, easing traffic and making daily commutes smoother.
Connecting the Artaza roundabout in Getxo with the Ballonti roundabout between Portugalete and Sestao, the tunnel has cut down commute times significantly. This convenience is drawing more people to consider living in the suburbs, where they can enjoy a quieter lifestyle without sacrificing easy access to the city.
On top of that, the Basque Government has approved the Basque Town Planning and Housing Forum, which is all about improving urban development. This initiative aims to make land management more efficient and encourage collaboration in housing policies, making suburban areas even more appealing.
With these changes, suburban areas are becoming more attractive, and property prices are likely to keep climbing as connectivity improves. Locals are noticing the shift, and it's creating a buzz among potential buyers looking for a good investment.
So, if you're thinking about buying property near Bilbao, now might be a good time to act. The combination of better transport and urban planning is making these areas hotspots for future growth.
Sources: EIB Press Release, Irekia Euskadi News
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Rental yields in Basque Country's tourist areas will slightly rise due to steady demand
The Basque Country is seeing a steady rise in tourism, which is boosting rental yields in popular tourist spots.
In November 2024, the region experienced a surge in visitors, with a 33.3% rise in rural accommodation guests and a 37.1% increase in overnight stays compared to the previous year. Tourist hostels also saw a jump, with visitor numbers up by 29.4% and overnight stays rising by 25.6%.
Occupancy rates are climbing, showing strong demand. For example, rural accommodations had a bed occupancy rate increase of 4.9 percentage points, reaching 18.6%, while room occupancy went up by 5.6 percentage points to 23.0% in November 2024. Tourist apartments did even better, with bed occupancy hitting 32.8% and apartment occupancy soaring to 63.2%.
Tourism spending in the Basque Country hit 6,139 million euros in 2023, a 29.6% jump from 2022. This boost in tourism revenue shows how vital tourism is to the local economy, making up 6.6% of the region's GDP in 2023.
These numbers highlight the economic impact of tourism and its role in driving demand for rental properties. The consistent influx of tourists is a promising sign for those considering investing in property here.
With the ongoing trend of increasing visitor numbers and spending, the Basque Country is poised for a slight increase in rental yields, especially in areas popular with tourists.
4) Property prices in the Basque Country will gradually rise as economic recovery enhances buyer confidence
The Basque Country is seeing a steady rise in property prices, especially for new homes.
In 2023, the House Price Index (HPI) hit record highs, with new homes reaching 159.41 index points and existing homes at 131.58. This shows a significant increase in property values, making it an exciting time for potential buyers.
While the region's economic growth was slightly below the national average in 2024, it's expected to match the national average by 2025. This is thanks to strong performances in residential construction and services, which are boosting economic stability and, in turn, buyer confidence.
The Basque Country is also catching the eye of foreign investors, offering an average return on investment of 5.5%. This makes it a promising real estate market, with high rental yields and supportive government policies like reduced VAT on home purchases.
These factors ensure a steady demand in both buying and rental markets, making the region an attractive option for property investment. The combination of economic recovery and favorable conditions is likely to keep pushing property prices up.
With its unique charm and growing economic prospects, the Basque Country is becoming a hotspot for those looking to invest in real estate. The region's appeal is further enhanced by its government initiatives promoting housing development, ensuring a vibrant market for years to come.
Sources: Statista, CaixaBank Research, Veiranda
5) Property prices in the Basque Country will rise moderately due to limited supply and high demand
Property prices in the Basque Country are steadily climbing, and this trend is set to continue.
In 2023, the house price index for both new and existing homes hit a 10-year high, with new builds seeing faster price hikes than older homes. This shows a strong upward push in the market. The limited availability of land for new developments is a key factor driving these prices up. Geographical and regulatory hurdles make it tough to expand housing supply, leading to a shortage. In places like Zarautz, the high price per square meter for apartments is a clear sign of this limited supply and high demand.
The Basque Country is also seeing a lot of urbanization, with many people flocking to major cities. This urban shift is boosting the demand for housing, especially in sought-after areas. Economic growth and job opportunities are further fueling this demand, even as inflation and rising interest rates loom. In cities like San Sebastian and Bilbao, housing prices have jumped more than 10% from last year, showing how strong the demand is.
Overall, property prices in the Basque Country will see a moderate increase due to limited supply and high demand. The region's unique blend of geographical constraints and economic opportunities makes it a hot spot for real estate. If you're considering buying property here, it's a good idea to act sooner rather than later, as prices are likely to keep rising.
Sources: Statista, Iberian Property, SGM Legal Spain, Properstar
Don't buy the wrong property, in the wrong area of Basque Country
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Rent prices in smaller Basque Country towns will stay stable with consistent demand
Rent prices in smaller Basque Country towns are stable thanks to consistent demand.
In places like Álava and Gipuzkoa, population growth has been steady, with Álava seeing a 14% increase and Gipuzkoa a 6.1% rise from 2004 to 2024. This growth is fueled by more people moving in than out, creating a stable community vibe.
Economically, these towns are rock solid. While Spain's real estate market has its ups and downs, smaller Basque towns have stayed calm. People love the lifestyle here—it's affordable and laid-back, with a great quality of life and plenty of services.
Looking back, rent prices have held steady over the years, thanks to this consistent demand and economic stability. Experts say this trend will stick around, with job creation and wage growth keeping the housing market balanced.
Folks are drawn to these towns for their charm and cost-effectiveness. Lower housing costs and a relaxed environment make them attractive, especially when compared to busier cities.
So, if you're thinking about buying property here, know that the demand isn't going anywhere. These towns offer a unique blend of stability and quality of life that's hard to beat.
Sources: Eustat, CaixaBank Research, Properstar, ESPON
7) Property prices in Bilbao's Abando district will surge as it evolves into a cultural and commercial hub
Bilbao's Abando district is on the brink of a property price surge.
In 2024, property prices in Abando averaged €4,497 per square meter, showing a steady rise. This was part of a larger trend in Bilbao, where prices increased by 5.61% from December 2023 to October 2024. The buzz around Abando is largely due to its transformation into a cultural and commercial hotspot.
One major factor is the investment in infrastructure, like the revamped Plaza Circular. This area has become pedestrian-friendly with new businesses and attractions, making it a magnet for both locals and tourists. Such developments naturally drive up property values as more people want to live and work in vibrant areas.
Tourism is another big player here. The Guggenheim Museum, a major draw, had record-breaking visitor numbers in 2023. This influx of tourists boosts demand for short-term rentals and homes, especially in central spots like Abando, pushing property prices higher.
Commercial activity is booming too. New businesses, including big names like Primark, are setting up shop, increasing foot traffic. This commercial growth not only enhances the district's appeal but also contributes to rising property prices as more people and businesses are attracted to the lively atmosphere.
Sources: Indomio, Guggenheim Museum Bilbao, GPSmyCity
8) Urban renewal projects will make Vitoria-Gasteiz's historic center more appealing to investors
The historic center of Vitoria-Gasteiz is becoming a hotspot for investors, thanks to some exciting developments.
Since 2012, the local government has been rolling out the Green Urban Infrastructure Strategy, which is all about breathing new life into rundown areas and boosting urban biodiversity. This makes the city a magnet for investors who are keen on sustainable development.
On top of that, the city snagged a hefty chunk of EU funding for urban renewal. A cool €6.4 million is earmarked for a project to retrofit up to 1,000 homes, aiming to slash energy consumption by 75%. This not only ups property values but also lures in investors who are all about energy efficiency.
Gasteiz Avenue is getting a makeover, turning into a river corridor, and public spaces are being revamped. The buzz in the media about these changes is hard to miss, and it's making the area even more attractive to investors. The city’s smart partnerships with private developers are a big plus, aligning projects with what the market and investors are looking for.
These urban renewal efforts are not just about aesthetics; they’re about creating a vibrant, sustainable community that investors find irresistible. The historic center is set to become a prime spot for those looking to invest in a city that’s on the rise.
Sources: Adaptecca, Pembina Institute, SDG Localization
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Stricter short-term rental rules in the Basque Country will affect Airbnb-style investment profits
Stricter short-term rental regulations in the Basque Country are shaking up the Airbnb scene, especially in bustling cities like Bilbao.
In 2023 and 2024, Bilbao ramped up its oversight on platforms like Airbnb, leading to surprise inspections and fines reaching up to €30,000 for those not playing by the rules. This has made it tough for property owners to keep their listings active, as the city has stopped issuing new permits in some central areas.
Property owners are finding it increasingly difficult to get the necessary permits to operate legally. Many hosts have faced fines and permit revocations for not meeting requirements like guest registration and safety standards, which has led to a drop in the number of Airbnb listings.
With the crackdown on unlicensed rentals, there's been a noticeable dip in interest for short-term rentals. Hosts are worried, and this has made it harder for new players to enter the market. The buzz in the media and on real estate forums is all about these hurdles, which is discouraging potential investors from diving in.
For those considering investing in short-term rentals in the Basque Country, it's crucial to be aware of these challenges. The city's strict stance is not just a temporary phase; it's a significant shift that could impact the profitability of Airbnb-style investments in the long run.
As the landscape changes, potential investors need to weigh these factors carefully. The current environment is not as welcoming as it once was, and the opportunities for new hosts are limited due to these stringent regulations.
10) Smart home technology will become more common in Basque Country properties as buyers look for modern conveniences
Smart home technology is on the rise in the Basque Country, and it's not slowing down.
In Spain, including the Basque region, the smart home market is set to grow from USD 0.83 billion in 2024 to USD 1.36 billion by 2029. This boom is fueled by a craving for modern comforts and energy-saving solutions.
With 80% of Spain's population living in urban areas, there's a big push for smart home gadgets that save space and energy. Cities like Vitoria-Gasteiz and Bilbao are seeing more smart devices on shelves, especially in stores like IKEA, showing a clear interest in these technologies.
People in the Basque Country are increasingly looking for homes with smart features that offer convenience, security, and energy efficiency. Real estate listings are now highlighting these features, and social media is buzzing with smart home discussions. The Spanish government's 'Digital Spain Agenda 2026' is also backing this trend, pushing for digital innovation and smart home adoption.
Local tech companies and real estate developers are teaming up to bring smart home tech into new housing projects. In cities like Vitoria-Gasteiz and Bilbao, these partnerships are proving the perks of smart homes. Tech expos and property seminars are also spotlighting smart home innovations, emphasizing their value in real estate.
Sources: Mordor Intelligence, IKEA, PwC Spain, Basque Country Technology Park
11) High-speed rail improvements in the Basque Country will boost property demand by making commuting more appealing in connected areas
Improved high-speed rail connections in the Basque Country are making commuting more attractive, boosting property demand in connected areas.
In recent years, towns like Saint Jean de Luz and Donostia-San Sebastian have seen a surge in property prices. For example, the average price per square meter in Saint Jean de Luz jumped to 5,100 euros, marking a 14% increase over two years. This makes it a hot spot for those looking to invest in real estate.
Guéthary is another town experiencing a property boom, with prices rising by 20% over the same period. The average price per square meter here is now 5,800 euros. This surge is largely due to the high demand for properties in areas connected by high-speed rail, making it a prime location for potential buyers.
The Basque Y high-speed rail line is a game-changer, aiming to cut travel times between major cities like Bilbao, Vitoria-Gasteiz, and San Sebastián. This development is crucial in making these areas more appealing to commuters, which in turn drives up property demand.
The European Investment Bank has backed this project with a €430 million loan, highlighting the significant investment in enhancing rail connectivity. This financial boost is expected to increase ridership and make these areas even more attractive to those looking to buy property.
The Basque Country's unique geographical location, vibrant economy, and high quality of life are drawing more investors. In Saint Jean de Luz, for instance, 45% of accommodations are second homes, indicating a strong interest from buyers looking for vacation properties or investment opportunities.
Sources: Barnes Cote Basque, European Investment Bank, Properstar
Make a profitable investment in Basque Country
Better information leads to better decisions. Save time and money. Download our guide.
12) Interest in co-living spaces will grow in the Basque Country as younger generations look for affordable housing options
Property prices in the Basque Country have been climbing steadily, making it tough for young people to buy homes.
With rental options scarce, there's a growing need for flexible housing. The Basque Government is stepping in by turning unused plots into temporary housing, giving young folks a way into the market. This shift shows a move towards more adaptable living setups.
Urban areas in the Basque Country are bustling with young professionals and students. This crowd often leans towards community living and shared spaces, echoing a global trend. Co-living spaces elsewhere have shown that these setups are both affordable and community-focused.
Government initiatives are backing innovative housing solutions, pouring money into subsidized and rent-controlled housing. It's likely that co-living spaces will be part of this affordable housing strategy.
Sources: Statista, Shape Affordable Housing, State of Housing in Europe 2023, Basque 2030 Agenda Monitoring Report
13) Rural Basque Country will draw more buyers seeking sustainable living and eco-friendly homes
The rural areas of the Basque Country are becoming a hotspot for buyers seeking sustainable living and eco-friendly homes.
In places like Las Casas de Ea Astei, there's a noticeable rise in demand for eco-friendly homes. These homes are built with energy-efficient designs, featuring solar panels and recycled materials, which are perfect for those who care about the environment. The construction industry here is also embracing sustainable methods, thanks to European policies, making it easier to find homes that fit eco-friendly standards.
Government incentives are a big part of this shift. The Basque Country's 2030 Environmental Framework Program and the Circular Economy and Bioeconomy Plan 2024 are pushing for sustainable building practices. This encouragement has led to more developers adopting green techniques, increasing the number of sustainable homes in rural areas.
People are becoming more aware of environmental issues, as shown in consumer surveys, and there's a growing preference for sustainable living. Successful eco-friendly communities in the Basque Country showcase the benefits of this lifestyle. Plus, with more people working remotely, living in rural areas while maintaining a sustainable lifestyle is now a viable option.
Sources: Sustainability Leaders, Iceberg Project, Ihobe
14) Single-person households will rise in the Basque Country, boosting demand for smaller, affordable properties
The Basque Country is seeing a rise in single-person households, boosting demand for smaller, more affordable homes.
Demographic shifts are driving this trend, with an aging population and delayed family formation playing key roles. Birth rates have plummeted, especially in the Western Basque Country, where they've dropped by 30% by 2022. This has led to one of the lowest birth rates in Europe, with just 1.4 children per woman.
Urbanization is also a big factor. About 71.56% of people live in cities like Bilbao, San Sebastián, and Vitoria. City life means a preference for smaller, more efficient homes that fit the urban lifestyle. Plus, with property prices climbing, smaller homes are often the more affordable choice for buyers.
The government is stepping in too. The Basque Government's Bultzatu 2050 Urban Agenda is all about improving housing and tackling demographic changes. They're pushing for more affordable housing to meet the needs of the population. This includes supporting the development of smaller, budget-friendly homes.
Real estate market analyses back this up, showing a rise in sales of smaller properties. This indicates a growing demand for compact housing options. People are clearly looking for homes that fit their lifestyle and budget.
Sources: CaixaBank Research, Naziogintza, Bultzatu 2050 Urban Agenda
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) Multi-generational living trends in the Basque Country will influence property demand types
The Basque Country is seeing a demographic shift with 24% of its population aged 65 and over, surpassing Spain's national average.
With men living up to 80.8 years and women reaching 86.6 years, the Basque Country boasts one of the highest life expectancies in Europe. This means more elderly folks will need suitable living arrangements, often relying on family support.
In the Basque culture, family and community are highly valued, which naturally encourages multi-generational living. This cultural preference aligns with the practical need to share resources and costs.
Rising property prices are making it tough for younger generations to buy homes on their own. As a result, families are increasingly considering living together, which is reshaping the property market demand.
Expect to see more properties designed for multi-generational living, with features like separate living spaces and shared common areas. This trend is not just about economics; it's about maintaining strong family ties in a changing world.
As the octogenarian population is expected to double by 2060, the demand for homes that accommodate extended families will likely grow, impacting the types of properties in demand.
Sources: Eustat, Matia Fundazioa, PwC Spain
16) More families will move to Basque Country suburbs for better schools and amenities, causing a demographic shift
The Basque Country is seeing a demographic shift as more families move to suburban areas for better schools and amenities.
In 2024, the region's population grew by 11,262 people, with Bizkaia leading the way, followed by Gipuzkoa and Álava. This growth is mainly due to a positive migratory balance, adding nearly 21,000 new residents to the area. Families are drawn to the suburbs, seeking improved educational resources and living conditions.
Education is a big pull factor. Enrollment rates have risen across all education stages, with a focus on social initiatives and efficient resource management. Families are looking for better educational opportunities, often found in suburban schools, which are becoming increasingly attractive.
The Basque Country tops the list in investment per student in non-university education. This significant investment in public services and amenities makes suburban areas more appealing to families wanting better living conditions and educational prospects for their children.
According to Eustat, 166 municipalities regained population in 2023, with Barakaldo, Irun, Sestao, and Mondragon seeing the most growth. This trend highlights the shift towards suburban living, as families move to these areas for the benefits they offer.
Suburban areas are becoming the go-to choice for families, thanks to their enhanced educational resources and improved living conditions. The demographic shift in the Basque Country is a clear sign of families prioritizing these factors when choosing where to live.
Sources: Eustat, Bizkaia Talent
17) The Basque Country will see rising demand for accessible, senior-friendly housing due to an aging population
The Basque Country is experiencing a demographic shift, with the average age of its population rising to 45.9 years by 2024.
As people live longer, there's a growing need for homes that cater to older adults. In 2022, life expectancy in the Basque Country was 80.5 years for men and 86.1 years for women, which means more people will need accessible housing as they age.
By 2031, it's expected that over half of the population will be 50 or older, and 28.2% will be 65 or above. This aging trend is pushing the demand for senior-friendly housing.
Local initiatives like the Basque Strategy for Active Aging and Euskadi Lagunkoia are stepping up. They're focused on creating environments that support aging in place, emphasizing the need for housing integrated with healthcare and support services.
These programs are crucial as they aim to develop homes that are not just accessible but also equipped to meet the needs of an aging population. The government recognizes the importance of supporting seniors to live independently in their communities.
With these efforts, the Basque Country is preparing for a future where senior-friendly housing becomes a priority, ensuring that older adults can enjoy a high quality of life.
Sources: Eustat, Eustat, WHO Age-Friendly World, WHO Age-Friendly World
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.