Buying property in Spain 2025
In 2024, 700,000 homes are expected to be sold in Spain. Based on registered sales up to and including the 3rd quarter. This message was shared during 2 important congresses in November. Early November was the Idealista real estate congress in Málaga, where Big Data showed a number of conclusions. In short:
- The number of households in Spain will increase by 20% in the next 15 years
- The number of inhabitants of Spain will grow by 10% in the same period
- The average home in Spain has an energy certificate with the letter E
- The Spanish economy will grow by 0.8% in 2024
Mortgage interest rates are falling
Although the Spanish national bank advises that households spend 30-35% of their net income on mortgage or rent, in the province of Málaga this is 42% (mortgage) up to 50% for tenants. Rents have risen considerably in recent years.
Foreigners buying a Spanish home is still a large group, and demand here will remain strong in the coming years. Many foreign buyers are cash buyers, often buying without a mortgage.
The domestic market also remains strong due to continued demand: more people and a strong increase in the number of households means more demand for homes.
In the years 2004-2008, up to 950,000 homes were sold per year, a real real estate bubble. These numbers are not being achieved (for the time being). Financing of real estate is also currently around 70%.
The well-known Spanish economist Gonzalo Bernardos (professor at the University of Barcelona) spoke during the API congress in Ávila end of october. He expects that in 2025:
- The demand for homes is increasing in Spain
- The number of homes for sale is decreasing in Spain
- The number of homes sold in Spain is around 800,000
- 12% of those homes sold are new construction and 88% are existing construction
Idealista expects that the number of estate agents will decrease; the small ones will disappear. Not that the number of estate agents is decreasing, selling 800,000 homes still requires human effort. The larger estate agents are getting bigger to serve the volume in the market. A large office is often less personal for the customer, you feel more like a number or a file.
Spanish home prices have risen by over 9% in 2024. Spanish property prices are expected to rise by around 10% in 2025 as well.
My conclusion is that 2025 is a good year to buy Spanish real estate.
Are you looking for a villa or apartment for your own use? With the help of Megens Real Estate you increase your chances of success.
Are you considering selling a home on the Costa del Sol: At MEGENS Real Estate you are assured of personal and professional advice. What result do you want to achieve; the best possible price, a short sales period or both? This is where the knowledge of an estate agent comes in handy.
The real estate investor has opportunities in 2025 for existing construction and new construction. For new construction, the selection of the right project, a good unit in that project and the timing are important. Often, getting in early is a simple and successful way, but it is also possible that you get in later on a project and that it is just as successful.
We offer resale properties through the network of estate agents, private sellers and investors. Here too, the knowledge and network of the estate agent in 2025 mean a lot of added value for the real estate investor in Spain.
