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What will happen in Galicia’s real estate market? Will prices go up or down? Is Santiago de Compostela still a hotspot for foreign investors? How is Galicia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Galicia, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) Demand for luxury homes on the Galician coast will rise as international buyers look for exclusive vacation properties
The demand for luxury properties on the Galician coast is on the rise as international buyers look for exclusive vacation homes.
In recent years, Spain has seen a surge in international property purchases, with tens of thousands of overseas buyers investing in the first half of 2024 alone. This trend underscores a growing interest in Spanish real estate, especially among international investors.
International buyers are particularly drawn to Spanish coastal properties, with Galicia standing out as a favorite. Here, they make up a significant portion of the luxury market sales. Buyers from America and Europe, notably from Germany, France, and Holland, are leading this demand.
The charm of traditional Galician-style properties and pazos, or country houses, remains strong. Luxury property prices in Galicia have remained stable, making it an attractive option for those seeking a unique blend of tradition and exclusivity.
Galicia's tourism sector is booming, with historic figures reached in 2024. Nearly 7 million travelers visited, spending over 13 million nights in accommodations. This surge highlights the region's growing allure as a luxury destination.
International tourism has played a significant role, accounting for 31% of the demand and surpassing 4 million overnight stays for the first time. This increase in international visitors reflects Galicia's rising status as a sought-after luxury spot.
Sources: Idealista, The Property Finders, Cluster Turismo Galicia
2) Property values in Santiago de Compostela will rise as tourism grows and it remains a cultural hub
Santiago de Compostela is seeing a surge in tourism, which is boosting property values.
In 2023, the city welcomed over 438,300 pilgrims, breaking previous records. This trend continued into 2024, with 101,524 visitors in July alone, many of whom were international tourists. This influx is energizing the local economy, making Santiago a hot spot for property investment.
Hotel occupancy rates are climbing, reflecting the city's growing allure. In July 2024, occupancy hit around 76%, with some hotels aiming for 90% in August. The peak was 79.67% in August 2024, showing strong demand for accommodation, which often leads to higher property values as investors jump on the tourism boom.
Santiago de Compostela's cultural status is a big draw for the property market. As a UNESCO World Heritage Site, it garners international attention, attracting buyers from all over. This global interest is pushing up property demand and prices.
The city's rich cultural scene, including its museums and the renowned University of Santiago de Compostela, adds to its charm as a cultural destination, further driving up property values.
Sources: Vialusitana, I Love Compostela, Pure Travel, Euronews, CEIC Data

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.
3) Rural property yields in Galicia will drop as depopulation persists in remote areas
Rural property yields in Galicia are facing challenges due to ongoing depopulation in less accessible areas.
In Galicia, the population is shrinking, with rural areas seeing an annual decline of 1.1%. This means fewer people are around to buy or rent properties, which directly impacts demand. By 2035, the region could lose about 139,000 inhabitants, making it harder to find buyers or tenants for rural homes.
The situation is worsened by the aging population. Galicia has a higher percentage of elderly residents compared to the national average, which means fewer young families and working-age individuals are contributing to the local economy. This demographic shift leads to less economic activity, affecting property values and yields.
Migration patterns show a clear trend: people are moving from rural to urban areas. Immigrants are mostly settling in cities, indicating a preference for urban living where opportunities and services are more available. This leaves rural areas with dwindling populations and reduced demand for properties.
As public services become less available in these sparsely populated areas, potential residents are further deterred from moving in. This creates a vicious cycle of depopulation and declining property yields, making rural investments less attractive.
For those considering buying property in Galicia, it's crucial to understand these dynamics. The ongoing depopulation and aging demographics are key factors that could influence property values and potential returns in rural areas.
Sources: Galicia Strategic Governance Plan for Rural Depopulation, News Coverage on Rural Depopulation
4) Rental yields in coastal areas will increase as tourism and short-term rentals grow
Tourism in Galicia has skyrocketed in recent years.
In 2023, the region saw over 2 million international visitors, and by 2024, this number had nearly tripled to 7 million, setting new records for both travelers and overnight stays. This influx of tourists is not just a number; it's a sign of Galicia's growing appeal as a destination.
With more tourists, there's been a noticeable rise in short-term rental occupancy. In 2024, international visitors opting for rural houses increased by 21.4%, pushing overall short-term rental occupancy to historic highs. This trend is particularly beneficial for those considering investing in rental properties.
The economic impact of this tourism boom is clear. The hotel sector's profitability jumped by 8.6% in September 2024, reflecting a thriving market. This growth in tourism-related revenue is a strong indicator that the property market is ripe for investment.
For potential property buyers, this means that rental yields in coastal areas are likely to rise as tourism and short-term rental markets expand. The demand for accommodations is growing, making it an opportune time to invest in Galicia's property market.
Sources: Cluster Turismo Galicia, Cluster Turismo Galicia, Cluster Turismo Galicia
5) Urban rental prices in Galicia will rise as more people relocate to cities for jobs
Urban rental prices in Galicia are on the rise as more people flock to cities for job opportunities.
In Spain, including Galicia, the urban population is growing, with a 1.5298% increase reported in 2023. This shift means more people are looking for homes in cities, pushing rental prices up. As cities expand, they become magnets for job seekers, which is a common pattern in areas experiencing economic growth.
Economic growth in Spain is creating more jobs, drawing people to urban areas. This rural-to-urban migration is a familiar story in growing economies, where the demand for city housing rises, leading to higher rental prices. As more people aim to settle in urban centers, the competition for housing intensifies.
Cities like A Coruña, Santiago de Compostela, and Vigo are seeing infrastructure development, which attracts both residents and businesses. This development boosts the demand for housing. In Galicia, historical data shows that rental prices have climbed due to urban migration, with a 9.93% increase in average rental prices per square meter from December 2023 to October 2024.
These cities are not just growing in population but also in appeal, thanks to improved infrastructure and job prospects. As more people move in, the housing market tightens, and rental prices naturally go up. This trend is particularly noticeable in areas with significant economic activity and development.
For those considering buying property in Galicia, understanding these dynamics is crucial. The ongoing urbanization and economic growth are key factors driving the rental market. As cities continue to develop, the demand for housing will likely keep rising, making it a competitive market for renters and buyers alike.
Sources: Indomio, Trading Economics, Marbella For Sale, Spainguru
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6) British demand for properties will increase post-Brexit as they look for EU residency options
British buyers are still a major force in the Spanish property market, even after Brexit.
In 2023, they were the largest group of foreign buyers in Spain, with 2,216 home sales involving British buyers. Despite a 15% drop from the previous year, this shows their continued significance. British buyers are particularly drawn to regions like Galicia, known for its stunning coastline and relaxed lifestyle.
From 2023 to 2024, there wasn't a significant decline in British demand for Spanish properties. Stricter residency rules post-Brexit didn't deter them. Many British expats are keen on maintaining their EU residency rights, which is evident in their sustained interest in Spanish real estate.
Real estate agencies in Galicia have noticed a rise in inquiries from British clients. They attribute this to Spain's appealing lifestyle and the benefits of EU residency. The picturesque landscapes and vibrant culture of Galicia make it a desirable location for those seeking a new home.
Government statistics reveal that many British citizens are actively applying for residency in Spain. This trend highlights their desire to keep EU mobility and residency rights intact. The Spanish lifestyle, with its warm climate and rich history, continues to attract British buyers.
Surveys indicate that British citizens are eager to maintain their EU mobility, which fuels their interest in Spanish properties. The combination of lifestyle benefits and residency options makes Spain, and particularly Galicia, a top choice for those looking to relocate.
Sources: Spanish Property Insight, Gentle Van Removals, Global Residence Index
7) Property demand in Galicia will rise as transportation links to major Spanish cities improve
Improved transportation links between Galicia and major Spanish cities are set to make property in these areas more appealing.
With a hefty €4.56 billion investment in the Atlantic Railways and Roads Corridor, Galicia is getting a major connectivity boost. This includes upgrades to key motorways, making the region more accessible. Historically, such infrastructure improvements lead to a rise in property prices as areas become more attractive to buyers.
The high-speed railway now links Madrid and Galicia, slashing travel times and making train travel a real competitor to flying. This has already given a lift to the local economy, hinting that better transport links can drive up property demand in these connected areas.
By 2025, Galicia is expected to see the creation of 27,000 new jobs, thanks to economic growth. This means more people and a bigger workforce, which naturally leads to a higher demand for housing, especially near major transport hubs.
For those considering buying property, these developments mean Galicia is becoming a more attractive option. The improved transport links not only make commuting easier but also enhance the overall appeal of the region, potentially leading to a surge in property interest.
As Galicia becomes more connected, the ripple effect on property demand is likely to be significant. The combination of job growth and better accessibility makes it a promising area for investment.
Sources: World Highways, CaixaBank Research, European Commission, BBVA Research
8) More foreign buyers will seek properties in Galicia due to its affordability compared to other European areas
Foreign buyers are increasingly eyeing Galicia for its affordable properties compared to other European regions.
In recent years, there's been a noticeable uptick in property sales to international buyers in Galicia, with 72% of luxury market sales going to them. This surge in interest underscores the growing foreign investment in the region's real estate market.
One big draw is the lower property prices in Galicia. Inland areas boast some of the lowest prices for land and houses in western Europe, while coastal spots offer a charming mix of rural beauty and seaside proximity. Even in urban hubs like A Coruña, prices remain below those in many other European cities, making Galicia a smart choice for value seekers.
Living costs in Galicia are also quite low compared to other parts of Europe, which adds to its allure. This affordability, paired with the region's stunning landscapes and pleasant climate, has been a magnet for international buyers, especially from America and Europe. The rise in real estate agencies focusing on international clients further fuels this trend.
Galicia's appeal isn't just about cost; it's also about lifestyle. The region offers a unique blend of cultural richness and natural beauty, from its lush green landscapes to its vibrant local traditions. This makes it an attractive destination for those looking to escape the hustle and bustle of more crowded European locales.
With its combination of affordability, beauty, and a welcoming atmosphere, Galicia is becoming a hotspot for foreign property buyers seeking a slice of European charm without the hefty price tag.
Sources: Idealista, GaliciaProperty, Euronews

We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Property prices in Lugo will grow more slowly because of its traditional economy
Lugo's property prices are growing more slowly than in other regions.
One reason for this is Lugo's lower population growth, which is linked to its higher unemployment rates. With fewer job opportunities, people aren't flocking to the area, which means less demand for housing.
In Lugo, the average income is lower compared to other parts of Galicia. When people earn less, they're less likely to buy property, which can slow down price growth. Plus, many folks in Lugo work in traditional industries like agriculture. These sectors usually grow more slowly than modern service industries, affecting the region's overall economic growth.
Another reason is the limited number of infrastructure and development projects in Lugo. Without new investments in housing and amenities, the supply of new properties remains low, which can keep property prices from rising quickly. Furthermore, Lugo attracts less foreign investment compared to other regions, as investors often look for areas with higher potential returns, such as those with strong tourism industries.
Another factor is the limited number of infrastructure and development projects in Lugo. Without new investments in housing and amenities, the supply of new properties remains low, which can keep property prices from rising quickly. Furthermore, Lugo attracts less foreign investment compared to other regions, as investors often look for areas with higher potential returns, such as those with strong tourism industries.
Sources: CaixaBank Research, Indomio
10) Property prices in Vigo’s urban areas will rise as it becomes a tech professional hotspot
Vigo is quickly becoming a hotspot for tech professionals, and this is driving up property prices in its urban neighborhoods.
One big reason for this boom is the growing number of tech companies setting up shop in the city. The Vigo Technology Park, established in 2004, is a major player in this transformation. It houses 400 companies and provides jobs to almost 18,000 people, with much of its space dedicated to industrial and office use.
Job postings for tech positions in Vigo are on the rise, making the city even more appealing to tech professionals. The park's infrastructure supports a variety of sectors, including automotive, sea, food, metal-mechanic, TICs, energy, aerospace, and granite. This shows a diverse demand for tech expertise, which is a strong sign of the growing need for tech professionals in the area.
Government incentives are also a big draw for tech startups in Vigo. The Free Trade Zone Consortium of Vigo (CZFV) has been boosting the city's economic development since 1947. They offer public grants and incentives, especially for new tech businesses, making Vigo an attractive spot for tech entrepreneurs and professionals.
With all these factors in play, it's no wonder that property prices in Vigo's urban neighborhoods are climbing. The influx of tech professionals is reshaping the city's real estate market, turning it into a vibrant hub for innovation and growth.
As more tech companies and professionals flock to Vigo, the city is poised to become a key player in the tech industry, further driving up demand for housing and office space. This trend is likely to continue, making Vigo an exciting place for both tech enthusiasts and property investors.
Sources: APTE, Coworkbooking
11) Galicia’s property prices will rise moderately as the region becomes known for its quality of life
Galicia is becoming a hotspot for those seeking a high quality of life, and it's making waves in the real estate market.
People are flocking to both urban and rural areas, pushing property prices up. In cities like Santiago de Compostela and A Coruña, prices have climbed, with some spots hitting €3,700 per square meter. But it's not just the cities; the Rías Baixas area is also seeing a surge in interest, especially from international buyers who love its unique environmental charm.
International buyers are snapping up luxury homes, making up a big chunk of the market. They're often looking for second homes or investment opportunities, which is boosting demand even more. The Galician government is also playing a part by investing in infrastructure and connectivity, making the region even more appealing.
Media coverage is shining a light on Galicia as an emerging destination, adding to its allure. This attention is helping to drive the real estate market, as more people discover what the region has to offer. The combination of natural beauty, cultural attractions, and a welcoming community is hard to resist.
With all these factors in play, it's no wonder that Galicia's real estate market is on the rise. The region's growing recognition for its quality of life is attracting a diverse range of buyers, from locals to international investors. This trend is expected to continue as more people seek out the unique lifestyle that Galicia offers.
Sources: Iberian Property, Ageinco
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12) Property prices in inland Galicia will drop as young people move to cities
Galicia's inland areas are experiencing a demographic shift, with the largest age group now between 45 and 49 years old.
Young people are leaving these rural areas, drawn to cities by better job opportunities and improved living conditions. This urban migration is a trend seen across Spain, where cities offer more than just jobs; they provide a vibrant lifestyle that appeals to younger generations.
In cities, economic growth and job opportunities are booming, making them magnets for those seeking employment and a higher quality of life. The allure of urban living is strong, with cultural and social amenities that are hard to find in rural settings.
As a result, the demand for properties in Galicia's inland areas is dropping, leading to a decline in property prices. This shift is not just about economics; it's about lifestyle choices that favor the hustle and bustle of city life over the tranquility of the countryside.
For potential buyers, this means that property prices in these rural areas are likely to continue falling as the younger population migrates to urban centers. This trend offers opportunities for those looking to invest in rural properties at lower prices.
Understanding these dynamics is crucial for anyone considering buying property in Galicia, as the ongoing demographic changes will shape the real estate market in the coming years.
Sources: Think Spain, Statista, Idealista
13) Property prices in A Coruña will rise steadily as it becomes a hub for renewable energy projects
A Coruña is quickly becoming a hotspot for renewable energy projects, which is set to boost property prices.
One major player, RWE, is teaming up with the Port Authority of A Coruña to turn the port into a key hub for floating offshore wind components. This move is part of Spain's big plan to roll out three gigawatts of floating offshore wind capacity by 2030. Such ambitious projects are not just about energy; they’re about transforming the local economy and real estate market.
The Spanish Government is also sweetening the deal with incentives for renewable energy development. Thanks to the Royal Decree-law 18/2022, investments in self-consumption electricity facilities from renewable sources can enjoy unrestricted depreciation/amortization. This policy, which kicked in for projects operational in 2023, makes A Coruña a magnet for renewable energy ventures.
These projects are expected to bring a wave of skilled jobs to the area, drawing in new residents. This influx of professionals will naturally lead to increased demand for housing, pushing property prices upward. The Port of A Coruña is also getting a facelift to handle the marshalling, assembly, and deployment of major components for commercial-scale floating offshore wind projects.
These infrastructure upgrades are not just about supporting energy projects; they’re about making the region more attractive overall. As A Coruña becomes a center for these cutting-edge developments, property values are likely to rise, reflecting the area's growing appeal.
With all these changes, A Coruña is not just a place to watch for renewable energy but also a promising spot for real estate investment. The combination of government incentives, job creation, and infrastructure improvements is setting the stage for a steady increase in property prices.
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.