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Writer's pictureCristina Schuttmann

Real Estate Market Guide in Spain: 5 Predictions and Trends for 2025

The real estate market in Spain has changed a lot in recent years, and what’s coming for 2025 continues the trends we’ve seen in 2024. Let’s take a look at the main trends, comparing what happened in 2024 with what’s expected for 2025.


1. Interest Rates Sky High and Harder to Get Mortgages


In 2024, interest rates in the eurozone went up due to measures from the European Central Bank to control inflation. This made it trickier to get a mortgage, especially for young people and families with lower incomes. As a result, the demand for homes cooled off a bit, helping to stabilize or lower prices in some areas.


For 2025, it looks like rates will stay high, which will keep making it tough for buyers. This might lead to stable prices, especially in places where there’s more supply and less demand.


2. Home Prices on Pause


Throughout 2024, we saw a slight correction in home prices, particularly in less popular areas. Cities like Madrid and Barcelona, which always attract people, had more moderate price increases. Meanwhile, rural and less urban areas experienced stagnant or even declining prices. People are starting to look more towards suburbs and smaller cities, seeking better quality of life and more affordable prices.


For 2025, this trend is expected to continue. There could be a slight drop in prices in some areas, while the most sought-after cities will likely remain strong, although the pressure from high interest rates may impact the overall market.


3. Rising Rental Demand


With the difficulty in accessing mortgages in 2024, the demand for rental properties skyrocketed. Although some cities implemented price controls that limited supply, the need for rental options kept demand high, especially in big cities.


For 2025, this trend is projected to continue. People who can’t buy will keep looking for rentals, but the limited supply could push rental prices up, especially in cities where housing is scarce.


4. Increased Interest in Green Properties


Concern for the environment and sustainability gained momentum in 2024, leading to a rise in demand for eco-friendly and energy-efficient properties. Both developers and buyers are prioritizing these features, driven by greater environmental awareness and new regulations.


For 2025, it’s expected that the demand for green properties will intensify. Homes that are energy-efficient will attract more buyers, and their value could increase due to this growing demand.


5. Renovation of Old Buildings


Another trend that will continue into 2025 is the purchase of old properties for renovation, focusing on sustainability and energy efficiency. This responds to the need to modernize the existing real estate stock and preserve architectural heritage.


In summary, the real estate market in Spain is constantly changing. Sustainability and technology are becoming increasingly important, while the economic context continues to influence prices and demand. For investors, 2025 promises opportunities, but there are also challenges related to access to financing and economic stability.


Conclusion 


The real estate landscape in Spain for 2025 looks challenging, with trends from 2024 carrying on. With high interest rates and limited access to mortgages, we’re likely to see price stabilization, increased rental demand, and a push towards sustainability. Both investors and buyers will need to adapt to these changes to make informed decisions in a constantly evolving environment..



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