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The Spanish real estate market continues to be one of the most dynamic and desirable in Europe. For anyone planning an investment in Spain or looking for a new home, understanding current property prices in Spain and forecasts for 2025 is key. After a period of recovery and steady growth, Spain’s markets are showing new trends that are shaping the landscape for the future.
General forecast for the real estate market in Spain in 2025
Experts predict that Spain’s real estate market will continue to be active in 2025, albeit at a more moderate growth rate than in previous years.
- Price growth: average house price growth in Spain for 2025 is expected to be in the range of 3% to 6%. This growth will be supported by sustained demand, particularly from foreign buyers.
- Deal Volume: The number of deals is likely to stabilize or experience a slight decline compared to peak periods, but remain at healthy levels, driven by the normalization of interest rates and inflation.
- Mortgage loans: interest rates are expected to normalize, which could make mortgages more affordable and stimulate local demand.
Factors affecting prices in 2025
Several key factors will continue to shape property prices in Spain in 2025:
- Demand from foreign buyers: Spain remains a magnet for international buyers, especially from the UK, Germany, France, Belgium, the Scandinavian countries (including Bulgarians) and the US, as well as for non-EU investors attracted by the Golden Visa.
- Tourism: the strong tourist flow supports the demand for holiday and short-term rental properties.
- Economic growth: Spain’s robust economic growth, improving labour market and controlled inflation are contributing to consumer and investor confidence.
- Interest rates and inflation: the expected stabilisation of inflation and a possible reduction in interest rates will have a positive impact on the affordability of mortgage loans.
- Limited supply: in some high demand areas (e.g. central urban areas, sea front) the supply of new properties is limited, keeping prices high.
- Construction: active new construction in some areas will meet some of the demand, but will be primarily focused on modern, energy efficient housing.
Prices per square meter by region and city in 2025 (Indicative)
Prices per square meter vary greatly depending on the region, city, property type and whether it is new construction or resale.
- Madrid:
- Prices: one of the most expensive and dynamic markets. Central districts and upscale neighborhoods average €4,500 – €7,000+ per sqm. In more affordable neighbourhoods prices can be between €2,500 – €3,500 per sqm.
- Forecast: sustained growth supported by economic growth and international investment.
- Barcelona:
- Prices: Like Madrid, Barcelona is an expensive market. Average prices in the Eixample and other central areas range between €4,000 – €6,500+ per sqm. In less central but developing neighbourhoods, prices can be between €2,800 – €3,800 per sqm.
- Forecast: stable prices, influenced by strict short-term rent regulations and rent control, but strong demand from international buyers.
- Valencia:
- Prices: offers more affordable prices than Madrid and Barcelona, but with rapid growth. Average between €2,200 – €3,500 per sqm in central and sought-after areas. In surrounding areas it can be under €2,000/sqm.
- Forecast: One of the fastest growing markets attracting expats and digital nomads. Strong growth expected.
- Costa del Sol (Malaga, Marbella, Estepona):
- Prices. Malaga (city) is between €2,500 – €4,500+ per sqm. Marbella and its surroundings (Marbella, Benahavis, Estepona) are a premium market with prices from €3,500 – €8,000+ per sqm, especially for luxury villas and beachfront properties.
- Forecast: continued strong growth, especially in the luxury segment and in developing areas.
- Costa Blanca (Alicante, Torrevieja):
- Prices. City of Alicante is between €1,800 – €2,800 per sqm (lower prices in more remote neighborhoods). Torrevieja and surrounding areas offer properties from €1,200 – €2,000 per sqm, and you can find cheap properties in Spain even under €1,000/sqm in older complexes.
- Forecast: steady growth supported by strong demand from foreign buyers looking for value for money.
- Balearic Islands (Mallorca, Ibiza, Menorca):
- Prices. Mallorca and Ibiza average €4,500 – €8,000+ per sqm, with luxury villas can exceed €15,000/sqm.
- Forecast: continued strong growth driven by limited supply and high demand for luxury properties.
- Canary Islands (Tenerife, Gran Canaria):
- Rates: year-round destination. Average prices range between €2,500 – €4,000+ per sqm, depending on the island and the specific area.
- Forecast: Steady growth supported by steady demand from retirees and short-term rental investors.
Trends in market segments in 2025
- New construction: will continue to be in demand as it offers modern amenities, energy efficiency and compliance with current standards. New construction prices will maintain a price advantage over secondary market properties.
- Energy Efficiency: High energy performance properties will be increasingly preferred and will retain higher prices due to growing awareness and lower operating costs.
- Telecommuting Properties: Homes with good home office options, fast internet and community amenities will remain attractive.
- Sustainability: increased interest in properties that integrate sustainable practices.
Conclusion
The Spanish real estate market in 2025 will continue to be attractive for investors and buyers, despite higher prices compared to the past. Average property price growth in Spain will be moderate but stable, with regional variations. Madrid, Barcelona, the Costa del Sol and the Balearic Islands will remain the most expensive but also the most lucrative. For those looking for more affordable options, the Costa Blanca and Valencia offer excellent value for money. The key to a successful investment in 2025 is meticulous research of the specific area, understanding of local trends and professional assistance.
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