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 do the latest numbers reveal about Spain’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Spain, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Nearly 30% of homes sold in Spain in 2024 were priced below €200,000, indicating strong interest in affordable housing
In 2024, nearly 30% of residential property sales in Spain involved homes priced below €200,000, highlighting a strong interest in affordable housing.
The Spanish property market has been quite dynamic, with sales jumping by 24.26% in April 2024 compared to April 2023. However, by May 2024, there was a 21.54% drop in sales from the previous year. Fast forward to October 2024, and sales surged again, showing a 51.31% increase from October 2023. This rollercoaster of activity suggests that buyers are on the lookout for good deals, especially in the affordable segment.
Spain's home ownership rate has been steady at around 75.30%, which indicates a consistent demand for homes. This stability means that many people are still keen on buying, and affordable housing is a big draw for a large chunk of the population.
Even though the median price per square meter rose from €1,669 in April 2024 to €1,757 in September 2024, the appetite for affordable homes remains strong. Buyers are likely trying to find a sweet spot between rising prices and the dream of owning a home.
Sources: Hausum, El País, Trading Economics, EPData, Idealista
2) In 2024, residential properties in Spain secured tenants in under 45 days, showing strong rental demand
In 2024, residential properties in Spain were rented out in less than 45 days, showing a strong demand for rentals.
One reason for this quick turnover was the increased demand for rental properties, which pushed rental prices higher. For example, in June 2024, the average rent for an 80-square-meter apartment was 1,012 euros, a 9% jump from the previous month. This price hike reflects a competitive market where tenants were eager to lock in a place quickly.
Another factor was the imbalance between supply and demand in the rental market. About 77% of people were looking to rent, while only 19% of property owners were offering their places. This limited supply made tenants act fast when a property became available.
These dynamics created a situation where properties were snapped up quickly, often in under 45 days. Tenants were in a race to secure rentals in a market with high demand and limited options.
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.
3) In 2024, about 25% of homebuyers in Spain were millennials, showing a rising trend in homeownership among younger generations
In 2024, around 25% of residential property buyers in Spain were millennials, showing a clear trend toward homeownership among younger people.
This shift is largely due to rising wages and better job stability, which have given millennials the financial confidence to invest in real estate. In bustling cities like Madrid and Barcelona, young professionals are particularly eager to own their own homes.
Many millennials are prioritizing homeownership over other life milestones, driven by a desire for financial independence. This trend is reshaping the housing market, especially in urban areas where the demand for property is high.
Millennials are also influencing the types of homes being built. They prefer modern, eco-friendly, and tech-savvy properties, which has led developers to include features like smart home technology and energy-efficient designs in new projects.
These preferences are not just about aesthetics; they reflect a broader commitment to sustainability and innovation. As a result, new developments are increasingly incorporating green technologies to meet the expectations of this younger generation.
Sources: Real Blor, Housenix, Living Rio
4) In 2024, nearly 40% of residential property transactions in Spain were by foreign buyers, favoring Mediterranean regions
In 2024, nearly 40% of residential property transactions in Spain were made by foreign buyers, with a strong preference for Mediterranean regions.
Back in 2022, there was a noticeable uptick in foreign interest in Spanish homes. Foreigners bought 90,000 homes, which was a 46% jump from the previous year. This surge laid the groundwork for ongoing foreign investment in Spain's real estate market.
Fast forward to the first half of 2024, and foreign buyers were responsible for 29,023 home purchases. This accounted for 41.8% of all foreign transactions, underscoring their significant influence in the market.
These buyers are particularly drawn to tourist hotspots and cities, especially in the Mediterranean regions. The Balearic Islands stand out for their attractive lifestyle and climate, making them a favorite among foreign investors.
Foreign buyers are not just dabbling; they are a major force in the market. In certain areas, their presence is even more pronounced, driving demand and shaping the local real estate landscape.
With such a strong preference for Mediterranean locales, foreign buyers are reshaping the property market in these regions, making them vibrant hubs of international interest.
Sources: CaixaBank Research, Idealista
5) Properties sold in Spain through fractional ownership are expected to rise by 10% by 2025
The number of properties sold in Spain through fractional ownership is expected to increase by 10% by 2025.
Spain's economy has been showing impressive resilience, with a GDP growth of 2.5% in 2024, laying a strong foundation for the real estate market. This economic stability is boosting confidence among investors, making fractional ownership an increasingly attractive option.
Fractional ownership is gaining traction because it allows multiple people to share a property, which is perfect for vacation homes or investment properties. In regions like Costa Blanca, the demand is particularly high due to its tourist appeal and limited housing supply, which is driving up property values.
With the Spanish real estate market on an upward trajectory, thanks to favorable economic conditions and strong demographic trends, more investors are looking into fractional ownership as a viable investment strategy.
In 2025, the projected economic growth of 2.1% is expected to further solidify the real estate sector's expansion, encouraging more people to explore fractional ownership opportunities.
As the market continues to grow, fractional ownership offers a way to invest in high-demand areas without the full financial burden, making it an appealing choice for many.
Sources: Bravos Estate
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6) Demand for eco-friendly homes in Spain is projected to grow by 25% by 2025 due to rising environmental awareness
The demand for eco-friendly homes in Spain is expected to grow by 25% by 2025, driven by increased environmental awareness.
In recent years, the real estate market in Spain has seen a noticeable shift towards sustainability. Many buyers are now more conscious of climate change and its impacts, leading to a significant change in preferences. For example, 60% of Spaniards now prioritize energy efficiency and sustainability when purchasing a home, according to donpiso.
Companies like Taylor Wimpey Espana have observed that sustainability is becoming a major focus for second home buyers. These buyers are increasingly demanding energy-efficient systems and renewable energy sources in their properties. This isn't just a passing trend; it's a growing necessity as more people recognize the importance of reducing their carbon footprint.
In the first half of 2024, donpiso reported a 30% increase in demand for sustainable homes. This surge highlights a strong and growing preference for eco-friendly living spaces among Spaniards. The shift is not only about personal preferences but also reflects a broader societal change towards more sustainable living.
As environmental awareness continues to rise, the real estate market is adapting to meet these new demands. Buyers are looking for homes that not only provide comfort but also contribute to a healthier planet. This trend is expected to continue, with more people seeking properties that align with their values.
Sources: Taylor Wimpey Espana, donpiso, AssetFolio
7) By 2025, properties in Valencia are expected to sell in under 60 days, showing strong demand
In 2025, Valencia's real estate market is thriving, attracting both local and international buyers.
Valencia has become a prime destination due to its vibrant lifestyle and investment potential. The demand for housing has surged following recent economic recovery, making it a desirable place to live and invest.
However, the supply of new homes hasn't matched this growing interest. This shortage means properties sell quickly, often disappearing from the market in no time.
Foreign investors, especially from northern Europe, are increasingly interested in Valencia. They're looking for second homes or retirement spots, which adds to the competitive market.
All these factors contribute to the fast-paced market, where properties often sell in less than 60 days. This quick turnover highlights the strong demand and limited supply.
Sources: M2 Servicios Inmobiliarios, Valencia Plaza, Hernan Mogollon
8) Single-person households in Spain are expected to reach 35% by 2025, boosting demand for smaller residential units
The number of single-person households in Spain is on the rise.
By 2023, this trend was already noticeable, and it's been growing steadily. Experts predict that by 2039, these households will make up 33.5% of all households in Spain. This consistent increase suggests that by 2025, the proportion could very well reach 35%.
As more people choose to live alone, the demand for smaller residential units naturally goes up. Single-person households typically need less space, making smaller homes more appealing and practical for them.
Sources: EjePrime, Foro Consultores, El País
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.
9) The number of homes in Spain with smart technology is expected to double by 2025
By 2025, 3.8 million homes in Spain will feature smart home technology, making up about 20% of all homes.
This surge is driven by the perks of smart home tech, like saving up to 30% on energy and boosting security with features such as early fire or gas leak detection. Homeowners are increasingly drawn to these benefits, seeing them as essential upgrades.
Spain's property market has been on a steady rise since 2016, with property prices climbing consistently. Even the COVID-19 pandemic didn't shake this trend, which has given homeowners the confidence to invest in smart technology.
Many Spaniards are planning to make their homes smarter, with 82% expressing intentions to upgrade in the next couple of years. This growing interest is a clear indicator of the shift towards more tech-savvy living spaces.
As the market for smart home technology is set to grow by 300% in Spain by 2024, it's evident that the demand is not just a passing trend but a significant shift in how people want to live.
With these advancements, smart homes are expected to represent 21% of all homes in Spain by 2025, reflecting a broader move towards integrating technology into everyday life.
Sources: IT Reseller, Observatorio Inmobiliario, CIC Construcción
10) Demand for luxury homes in Spain is expected to grow by 18% by 2025, especially in Madrid and Barcelona
The demand for luxury residential properties in Spain is projected to grow by 18% by 2025, especially in major cities like Madrid and Barcelona.
International buyers are flocking to these vibrant cities, drawn by their rich culture and economic opportunities. Madrid and Barcelona have become hotspots for high-end real estate, with new areas being revalued and attracting affluent buyers. This trend is reshaping the urban landscape, making these cities even more appealing.
Back in 2023 and 2024, both cities were already experiencing a surge in luxury property prices. Madrid and Barcelona ranked among the top 10 cities globally for expected increases in luxury housing prices, with growth rates between 2% and 3.9%. This upward trend reflects the cities' growing allure and the limited availability of prime properties.
Madrid's luxury real estate market is on a steady climb, with a projected 2.92% increase in 2024. The ongoing demand and limited supply of high-end properties are key factors driving this growth. Buyers are eager to invest in Madrid's exclusive neighborhoods, where luxury living meets vibrant city life.
Barcelona is not far behind, with its luxury housing market also on the rise. Prime properties in Barcelona are seeing moderate value increases, attracting those who seek a blend of modernity and tradition. The city's unique charm and strategic location make it a desirable destination for luxury property investors.
Sources: Premium Villas Costa Blanca, Idealista, The Golden Partners
11) Residential properties in Spain sold as co-living arrangements are expected to rise by 20% by 2025
The number of residential properties in Spain sold as part of co-living arrangements is expected to increase by 20% by 2025.
According to Savills Spain, flexible and co-living formats are projected to make up 16% of new residential developments for rental by 2025. This includes a significant number of new units that are professionally managed, covering Build-to-Rent, co-living, and flex living formats.
A study by CBRE highlights that the "flex living" sector, which includes co-living, is set to double its stock to about 20,000 beds by 2025. This growth is mainly happening in major cities like Madrid and Barcelona, with an expanding presence in other areas such as Valencia, Málaga, and Vizcaya.
The rental market in Spain is shifting, with increased demand in urban and coastal areas. This trend is driven by both short-term vacation rentals and long-term leases, alongside a growing interest in energy-efficient and sustainable properties.
In major cities, the demand for co-living spaces is rising as more people seek affordable and flexible living options. This is especially true for young professionals and digital nomads who value community and shared amenities.
As the co-living trend grows, developers are focusing on creating spaces that offer modern amenities and community-driven experiences. This approach is attracting a diverse range of residents looking for more than just a place to live.
Sources: Savills Spain, CBRE Study, Market Trends
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12) Valencia’s average rental yield is projected to be around 6% in 2025, attracting investors
In 2025, Valencia is a hotspot for property investment due to its stable demand and promising revaluation prospects.
During 2023 and 2024, Valencia's real estate market saw a steady recovery, fueled by interest from both national and international buyers. This consistent demand has kept property prices solid, making the city an attractive option for investors.
Valencia stands out with its significant potential for revaluation. Property prices per square meter are lower compared to other European cities of similar size, suggesting room for value growth, which adds to its investment appeal.
Investors are particularly drawn to Valencia because of its projected rental yield of around 6% in 2025, making it a lucrative choice. This yield is higher than many other European cities, offering a compelling reason to consider Valencia for property investment.
Moreover, the city's vibrant culture, excellent climate, and strategic location on the Mediterranean coast further enhance its attractiveness. These factors contribute to a strong and growing demand for both residential and rental properties.
Valencia's real estate market is not just about numbers; it's about lifestyle and opportunity. The combination of affordable property prices and a high quality of life makes it a unique investment destination.
Sources: GuestReady, Cabanyal Estate
13) By 2025, the average price per square meter for homes in the Balearic Islands is expected to increase by 8%
In 2025, the average price per square meter for residential properties in the Balearic Islands is projected to rise by 8%.
Luxury homes are in high demand, especially in prime coastal areas, with sales of premium villas surging by 25%. This strong interest in high-end properties means more buyers are competing for limited options, naturally driving up prices.
There's also a noticeable shift towards sustainable living. Eco-friendly properties are commanding a 15-20% premium as buyers increasingly prioritize sustainability. This trend adds value to these properties and contributes to the overall rise in average prices.
The influx of digital nomads is another factor, leading to a 35% increase in long-term rental demand, particularly in well-connected areas like Palma. This heightened demand for rentals influences property prices, as investors look to capitalize on the rental market.
These factors combined are pushing the average price per square meter up, making the Balearic Islands a hot spot for property investment. The blend of luxury demand, sustainable living, and rental market dynamics is reshaping the real estate landscape.
For those considering buying property in the Balearic Islands, understanding these trends is crucial. The market is evolving, and these changes are setting the stage for future growth and investment opportunities.
Sources: Balearic Properties, Properstar
14) By 2025, coastal city home prices in Spain are expected to rise by at least 5% per square meter
The average price per square meter for residential properties in coastal cities in Spain is expected to increase by at least 5% by 2025.
Since 2016, the Spanish property market has been on a steady rise, even with some hiccups during the COVID-19 pandemic. By late 2024, the average price per square meter for new-build properties in Spain hit €3,219, showing a strong recovery and growth.
Coastal cities like Málaga and Santander are seeing significant price hikes. Málaga, for example, experienced a 22.3% increase in the average price per square meter, reaching €2,917. This surge is fueled by the appealing climate, rich cultural attractions, and the interest of international buyers.
While there's no specific source confirming a 5% rise for all coastal cities, the ongoing trend of rising prices makes it likely. Cities like Málaga and Santander are expected to continue their upward trend in property prices.
International buyers are particularly drawn to these areas, contributing to the demand and price increases. The allure of Spain's coastal lifestyle, combined with a recovering market, suggests that property values will keep climbing.
With the current market dynamics, investing in coastal properties in Spain could be a wise decision. The combination of international interest and local demand is likely to drive prices even higher in the coming years.
Sources: Infobae, RealAdvisor, IAD España
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.
15) Madrid’s residential rents are expected to rise by 7% by 2025 due to limited supply and high demand
The average rent for residential properties in Madrid is projected to increase by 7% by 2025 due to limited supply and high demand.
Madrid's housing market is feeling the squeeze because new home construction has been sluggish. Bureaucratic delays and a shortage of available land have slowed down the building process, leaving the city with fewer new homes than needed. This scarcity is a key factor driving up prices.
On the flip side, demand is booming. Madrid's strong economy and robust job market are magnets for people seeking opportunities, which keeps the demand for housing high. The city's appeal isn't just local; foreign buyers are also showing interest, adding to the pressure on the market.
Population growth is another piece of the puzzle. As more people move to Madrid, the demand for housing naturally increases. This growing population, combined with limited housing options, is a recipe for rising rental prices.
With these dynamics at play, it's no surprise that rental prices are on the rise. The combination of high demand and limited supply creates a competitive market where prices are pushed upward.
Sources: CaixaBank Research, Prinex, Properstar, Inmobiliaria Tu Zona
16) By 2025, properties within 500 meters of public transport hubs are expected to have a 15% premium
By 2025, properties within 500 meters of public transport hubs are expected to see a 15% price increase.
In recent years, especially in 2023 and 2024, Spain has been focusing on urban planning that emphasizes sustainability and mobility. This shift has made properties near public transport more desirable. The convenience of being close to metro stations, buses, and trains has significantly boosted their value.
Urban centers are creating low-emission zones, which naturally increase the appeal of properties near public transportation. This focus on sustainable mobility has made these areas attractive for investment. The enhanced livability and connectivity of these locations have been recognized by the market.
As a result, properties within this range are commanding a 15% premium. This premium reflects the growing demand and perceived value of living close to public transport hubs. The trend is driven by the convenience and connectivity these locations offer.
Investors are increasingly drawn to these areas, recognizing the benefits of sustainable urban living. The market's response to this trend is evident in the rising property values. The emphasis on sustainability and mobility is reshaping the real estate landscape.
By 2025, the focus on public transport accessibility will continue to drive property values up. The premium on these properties highlights the importance of connectivity in urban living. This trend is expected to persist as cities prioritize sustainable development.
Sources: Ambito Financiero
17) By 2025, Spain's average mortgage interest rate is expected to stay below 3.5%, promoting homeownership
By 2025, mortgage interest rates in Spain are expected to stay below 3.5%, making it an attractive time to buy a home.
In 2024, the average mortgage interest rate was around 3.14%, which was already quite low. Just a few years earlier, in 2020, rates had dipped to a record low of 2.44%. Variable mortgages were even more affordable, averaging 2.92%, while fixed-rate mortgages were slightly higher at 3.3%.
There's a buzz among experts that the European Central Bank might lower interest rates even further. This is because inflation is under control, and there's a push to boost economic growth. If the ECB does lower rates, borrowing would become cheaper, which is a big plus for homebuyers.
For those considering buying property in Spain, these low rates mean more affordable monthly payments and potentially more house for your money. It's a good time to explore options and see what fits your budget.
Keep an eye on the market trends and ECB announcements, as they can influence the rates. With the right timing, you could secure a great deal on your dream home.
Sources: How to Buy in Spain, Idealista
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18) By 2025, buyer interest in urban properties near schools is expected to rise by 9%
In 2023 and 2024, urban housing demand in Spain surged due to economic recovery and job creation.
People flocked to cities, drawn by new job opportunities, which kept the demand for urban properties high. Families and professionals, in particular, favored homes near schools for the convenience they offer. This preference has been a consistent trend, as having educational institutions nearby is a major selling point for many buyers.
The Spanish real estate market saw significant growth, with property prices rising due to high demand and limited supply. This upward trend is expected to continue, making properties with desirable features, like proximity to schools, even more appealing to potential buyers.
By 2025, urban properties within walking distance of schools are projected to see a 9% increase in buyer interest. This is largely because families prioritize convenience and accessibility when choosing a home. The ongoing demand for such properties highlights their value in the market.
As the market evolves, properties that offer easy access to schools will likely remain in high demand. This is a key consideration for anyone looking to invest in real estate in Spain. The combination of economic growth and the desire for convenience continues to drive the market.
Sources: Prime Invest, Culmia, IAD España
19) Over 15% of properties sold in Spain in 2024 were newly built, showing rising interest in modern designs
In 2024, over 15% of properties sold in Spain were newly built, showing a clear preference for modern designs.
Many buyers were drawn to sustainable and energy-efficient homes, which not only looked modern but also embraced eco-friendly features. This shift was part of a larger trend where sustainability became a major factor for property buyers.
Another appealing aspect was the rise of proptech and flexible living spaces. These innovations made new builds more attractive to those who valued modern conveniences and adaptable spaces.
The digitalization of the real estate market also played a significant role. It allowed buyers to easily explore and purchase new constructions, making the process more accessible and efficient.
Overall, the Spanish real estate market in 2024 was shaped by these factors, with a noticeable shift towards modern, sustainable, and tech-savvy homes.
Sources: Nardia, Renta Corporación, Hausum
20) In 2024, property prices in Spain's tourist hotspots grew by 7%, attracting investors
In 2024, properties in Spain's tourist hotspots saw an average price growth of 7%, drawing in investors.
The surge in property prices was fueled by the revival of tourism and the rise of remote work, which boosted demand in popular spots like Málaga, Alicante, and Valencia. These areas, known for their warm climates and excellent infrastructure, became even more attractive to buyers.
Take Málaga, for example, where property prices jumped by 7.3% over the year. This increase highlights the city's appeal for those looking to earn rental income or enjoy long-term capital gains.
In tourist areas, properties were significantly pricier than in non-tourist regions, with a 74.2% higher median price. This stark difference underscores the strong investment potential in these sought-after locations.
Investors are particularly drawn to these areas because of their potential for both immediate rental returns and future value appreciation. The combination of a thriving tourism sector and a growing remote work culture has made these regions prime targets for property investment.
As more people seek homes in these vibrant locales, the demand continues to push prices upward, making it a compelling time for investors to consider entering the market.
Sources: The Golden Partners, Idealista
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.
21) Waterfront property demand in Spain is expected to grow by 8% by 2025, keeping them attractive investments
The demand for waterfront properties in Spain, particularly in the Costa del Sol, is on the rise due to several key factors.
Known for its stunning beaches and pleasant Mediterranean climate, the Costa del Sol is a top choice for retirees and vacationers. This region's lifestyle and weather consistently attract buyers from both Spain and abroad. The limited supply of new properties, due to planning regulations and land availability, has created a scarcity that drives up demand and property prices.
Spain's economic stability is another factor fueling this demand. As the country recovers from the pandemic, the real estate market remains robust. Prime locations like Marbella and Estepona have seen notable price increases, especially in high-demand areas such as beachfront villas and luxury apartments.
Retirees are particularly drawn to the Costa del Sol, not just for its climate but also for the lifestyle it offers. The region's appeal as a retirement destination is strong, with many choosing to invest in properties here. This trend is supported by the limited availability of new developments, which keeps the market competitive.
Looking ahead, the demand for waterfront properties in Spain is projected to grow by 8% by 2025. This growth is expected to maintain their appeal as prime investments, especially in areas with limited land availability and high demand.
For those considering investing in Spanish real estate, the Costa del Sol offers a unique combination of lifestyle, climate, and investment potential. With the market showing signs of continued growth, now might be the perfect time to explore opportunities in this vibrant region.
Sources: Costa del Sol Property Market Report: Trends and Predictions for 2025, What to expect about prices of the Real Estate market on the Costa del Sol, Spain Property Market Forecast 2025
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.