Spanish Real Estate Market Forecast for 2025

Economic and Demographic Growth Drivers

The Spanish real estate market is experiencing significant growth driven by key economic and demographic factors. Lower interest rates and strengthened economic activity in the Eurozone have increased housing demand. According to BBVA Research, Spain's GDP grew by 2.5% in 2024, with a projected growth of 2.1% in 2025. This recovery, following the pandemic, has boosted consumer confidence and positively impacted the real estate market.

Price and Construction Trends

One of the most noticeable trends is the rise in housing prices, particularly in major cities and popular coastal areas like Costa Blanca. CaixaBank Research reports that property prices rose by 4.3% in Q1 2024, a trend expected to continue into 2025.

Limited new construction and high demand are key reasons for this price increase. Investment in new builds is forecasted to rise by 15% in 2025. These market conditions create favorable opportunities for property buyers and investors.

Costa Blanca Real Estate Market

Costa Blanca remains a top destination for real estate investment, thanks to its popularity with tourists and the strong demand for rental properties. The growing demand, coupled with limited housing supply, is expected to drive further price increases, making it an attractive region for long-term investments.

Investor Recommendations

Potential investors should consider purchasing new developments in major cities and coastal areas. High demand and anticipated price growth make these investments highly profitable. Costa Blanca, in particular, offers excellent opportunities for buying property for both personal use and rental income.

Conclusion

The Spanish real estate market will continue to grow in 2025, driven by a favorable economic outlook and strong demographic trends. Investors should focus on regions with high demand and limited supply, such as Costa Blanca, to maximize returns. Given current trends, investing in Spanish real estate promises solid medium- and long-term gains.

If you're interested in purchasing property in Spain, contact our agency for personalized advice and to find the best options for your goals.