Q1 2025 Spanish Property Market Report | 14.9% Price Growth in Spain — But That’s Not the Whole Story
24 Jun 2025
The official market data of the first quarter of 2025 have been published by the Spanish property registry. The high demand for quality homes is still very present in Spain and more national buyers are in the game.
Compared to the year before house prices in Spain were 14,9% higher in the first quarter of 2025. Since the lowest price level in 2014 prices have risen a massive 92,2%.
In the first quarter of 2025 the total number of homes sold was 19,9% higher than a year before (Q4-2024 was 32,86% higher). The high demand for top-quality homes in Spain clearly remained strong given the fact that the number of brand new homes sold rose with 34,36% compared to 2024.
Essential Insights from this Q1-2025 Market Report:
Quarterly Home Sales in Spain: Increased by 5,3% compared to previous quarter
Annual Home Sales in Spain: compared to a year before increased by 19,9%
Property Prices Nationwide: Increased 14,9% year-on-year.
Costa Blanca Property Market: Prices rose on average 10,8% in the last 12 months, with new build home prices increasing by 5,6%.
Costa Cálida: Prices rose on average with 7,5% in the last 12 months, with new build home prices increasing by 9,6%.
Foreign Buyers: Accounted for 14,1% of total property sales in Spain, with Costa Blanca seeing the highest foreign demand at 43,67%.
Mortgages: 65,5% of homes purchased in Spain were financed, this is 3,9% less than in the previous quarter and the first quarter in 9 months with lower lending activity.
Top 5 international buyers in Spain: British, Germans, Dutch, Moroccans, French (see all 18 nationalities below)
We are half way 2025 and in our team we notice a high demand for quality homes. Our clients seem to be willing to pay more for the right home on the right location and expect superior quality in exchange combined with excellent client services from our dedicated team.
We expect demand to remain high in the coming quarters with additional pressure on the team to find those quality homes in the market.
Discussions with industry experts—including bankers, mortgage brokers, and real estate investors—confirm that the market for luxury properties and new developments remains strong, making Spain a very attractive destination for property investment.
How can we help you?
Finding a home can be difficult and hard work. Especially when looking abroad in a country that you may not know yet very well.
The majority of our clients are experienced professionals, or business owners, themselves too, with a certain living standard and equally high expectations. Our team is eager to match and surpass your expectations. This is often a time consuming process that we handle with a smile to find the right home together with you.
As our client you can be sure that we value your time and that we will be as effective and transparent as possible. As a professional team of real estate agents, we know the market and understand what you as our client require.
In return we also expect our clients and investors to respect the efforts put at work and the time invested to provide a high level real estate service.
We enjoy working with you as our client in a professional manner with open communication and the level of mutual trust required to be successful.
Let us know how we can help you!
Why Costa Blanca? A Hotspot for International Buyers
Costa Blanca continues to be a top choice for foreign investors, remote workers, retirees and other second-home buyers. Here’s why:
· Exceptional Climate: Over 320 sunny days per year, making it a year-round destination.
· High Rental Demand: Short-term and long-term rental markets are booming due to tourism, expat and national demand.
· Strong Investment Returns: Average New build prices in Spain increased 4,8% in the last 12 months, ensuring solid capital appreciation.
· Quality Healthcare & Infrastructure: World-class private hospitals and multilingual services available.
· Quality International Schools at a fraction of the cost of private education in the USA, China or in other European countries.
· Affordable Cost of Living: Significantly lower than in Northern Europe, with great value on luxury properties.
· Most popular villagesto buy a villa for sale onCosta Blanca North are Javea, Altea, Benissa, Moraira, Villajoyosa and Benidorm.
· In Costa Blanca South highly sought after locations for properties for sale on Costa Blanca South are thegolf resortsaround Villamartin and San Miguel de las Salinas and the sea side areas of Torrevieja, Orihuela Costa and Punta Prima.
Thinking about investing in Spain? **Schedule a free consultation with our experts**.
Market Data Breakdown: Q1 2025
Madrid: 21.411 homes sold (-0,7%)
Barcelona: 19.618 homes sold (+12,2%)
Alicante (Costa Blanca): 13.689 homes sold (+0,8%)
Valencia: 10.099 homes sold (-2.5%)
Málaga (Costa del Sol): 9.740 homes sold (+2,6%)
Murcia (Costa Cálida): 7.312 homes sold (+20,6%)
Read more about the Five Steps of The Investment Process in a Spanish Property! **Read Guide**
Read the full market report here below on our website!
Background:
On the 26th of May 2025, the Spanish Property Registry (Colegio de Registradores de la Propiedad, Bienes Muebles y Mercantiles de España) released the Q1 2025 property market insights. At nardia real estate agency in Altea, our commitment is to empower you with fact-based insights, enabling informed decisions.
Discover our comprehensive market analysis below.
In This Market Report:
Homes Sold in the First Quarter of 2025
Top 10 Provinces with Most Homes Sold in Q1-2025
Price Fluctuations and Trends
Trend: prices continue to rise gradually
Market Overview First Quarter 2025:
Comunidad Valenciana & Costa Cálida
Market Sentiments
Trend: Buy-to-Rent
Your Investment Partner in Costa Blanca
Foreign Demand
Q1-2025 Foreign Demand by Region
Why Costa blanca?
Nationalities that bought the most homes in Q1-2025:
Mortgages
Average Mortgage amount Mortgage and monthly income Mortgages on Costa Blanca & Costa Cálida
Trend: Mortgages more attractive?
The Spanish Economy
Inflation Employment Company Formations Insolvency proceedings
Market Outlook
A 10-year Outlook on the Spanish Property Market: 2024-2034
1. Homes Sold in the First Quarter of 2025
In Q1 2025, the overall price for properties for sale in Spain increased with 5,3% with 181.625 homes sold. This while in the previous quarter a total of 172.551 homes were sold.
On an annual basis the first quarter shows that 19.9% more homes were sold in the total Spanish property market when compared to the first quarter of 2024.
Homes Sold in Q1 2025: 181.625
Homes Sold in Q4 2024: 172.551
Above: Spain Homes Sold in the First quarter of 2025
© Images: nardia real estate agency. Data source: Registradores.
The number of homes sold is higher than in the previous quarter while the percentage of homes bought by a foreigner is lower. The additional number of homes sold is supported by national buyers who have been waiting for the right time. This combined with low interest rates and widely available mortgages is, in our opinion, one of the main drivers behind the rise in the number of properties sold.
The Comunidad Valenciana is with 27.379 homes the third region of Spain with a market share of 15,62% of the total Spanish property market which is slightly below the market share in the previous quarters. The number of homes sold in the Comunidad Valenciana in the first quarter decreased with 0,7% compared to the previous quarter. This while compared to a year before the total number of homes sold rose with 11,6%. Year-on-Year the sale of new build homes rose with 27,9%.
New Build Homes Sold: 5.065
Resale Homes Sold: 22.314
Above: Comunidad Valenciana Homes Sold in the first quarter of 2025
© Images: nardia real estate agency. Data source: Registradores.
One of the most popular regions to buy a house for sale in Spain is the Costa Blanca. In the first quarter of 2025 there were 13.689 homes sold. Being 0,8% more than in the previous three months. This quarter new build homes on Costa Blanca showed a rise of 3,4% in homes sold and the number of transactions of existing houses for sale on Costa Blanca rose with 0.2%.
New Build Homes Sold: 2.654 a rise of 3,4%
Resale Homes Sold: 11.035 a rise of 0,2%
On an annual basis the total market of properties for sale on Costa Blanca rose with 9,7%. The number of transactions of new build homes jumped with 35,7% in homes sold to a total of 9.861 properties (in the previous quarter the annual rise was 35,6%).
Find your dream home in Spain today! **View our latest property listings** or get in touch for advice!
2. Top 10 Provinces with Most Homes Sold in Q1-2025
These are the top 10 provinces that are the most sought after when buying a property for sale in Spain.
Below you find per region the number of homes sold in the first quarter of 2025 including the percentage of variation compared to the previous quarter.
Madrid 21.411 -0,7%
Barcelona 19.618 +12,2%%
Alicante 13.689 +0,8%
Valencia 10.099 -2,5%
Málaga 9.740 +2,6%
Murcia 7.312 +20,6%
Cadiz 4.507 +2,4%
Asturias 4.155 -2,6%
Toledo 3.959 +5,1%
Granada 3.901 +14,6%
3. Price Fluctuations and Trends
Property prices in the whole of Spain increased with 2.9% compared to the fourth quarter of 2024. A property in beautiful Spain with its nice and relaxed life style and fantastic culinary offer is in high demand and we expect the demand to continue to be stable for the next years!
When compared with the same quarter of 2024, year-on-year the average price of houses sold in the whole of Spain rose by 8,1%.
On average in Spain the prices of new build homes rose in a year with 6,7% and for existing homes with 8,1%.
The province with the highest price rise in the first quarter of 2025 was Córdoba with a substantial price rise of 19%. This jump in property prices was mainly caused by the 31,1% price rise for the 2.208 new build homes sold in Cordoba. Existing homes sold were priced 4,5% higher than in the previous quarter.
These numbers should be seen in the right perspective. In the fourth quarter of 2024 prices in Cordoba decreased with 3,2% on average.
It seems that the rise in new homes being sold is again behind the large jump in average prices. We have seen this all over Spain for a few quarters in a row now. In the previous 2 quarters similar price jumps were noted in Cuenca. Whereas this quarter in Cuenca the average property prise was 23,6% lower.
Another notable jump in house prices was noted in the first quarter of 2025 in Teruel with a rise of 15,7% on average. When we look at new build homes alone in Teruel prices were just 3,7% higher than in the last quarter of 2024. The jump in property prices is supported by a rise of 14,7% for resale homes.
Houses for sale on Costa Blanca have always been attractive due to the unbeatable climate, beautiful beaches and fantastic gastronomy the area offers. Property on Costa Blanca has been in high demand for a few years now and we believe the demand will be stable and continue to rise gradually.
In the Alicante province, where Costa Blanca is, the average home price rose with 0,7% in the first quarter of 2025.
On an annual basis the rise in Alicante is on average 10,8% compared to the first quarter of 2024. Over the last 12 months’ prices of brand new properties rose with 5,6% and resale home prices were 10,4% higher than a year before.
In Valencia average house prices rose with 2,3% similar to the 2,5% price increase in the previous quarter. New homes in Valencia cost 3,9% less than in the previous quarter and resale properties sold for 2,9% higher prices.
On an annual basis prices in Valencia rose on average with 10,8% (previous quarter 9,1%). Prices for new build homes in Valencia showed for the second time since five consecutive quarters a rise year-on-year with 7,8% while existing home prices rose with 11,3%.
Before the two consecutive annual price rises for new build homes in Valencia the last price rise was noted in the second quarter of 2023 with a price rise of 2,8% compared to the second quarter of 2022.
Villas with a private pool for sale and brand new apartments for sale on Costa Cálida are also in high demand. Property prices on Costa Cálida are lower than on Costa Blanca and substantially below the most sought after location of the Alicante province as Javea, Altea and Moraira. The area is very popular with both national and international clients due to the mild climate and authentic Spanish villages while also near golf courses and resort style urbanisations. Costa Cálida is a beautiful area and situated in the region of Murcia on the southern part of the Spanish coastline.
Compared to the last quarter of 2024 Murcia noted an average decrease in house prices of 2,9%. Being a drop of 12,4% for new build homes. This seems to be a continued correction on the high price rises for new build homes in the third and second quarter of 2024 of 9,1% in the third and 20,1% in the second quarter.
Resale properties for sale in Murcia sold for 0,8% less than in the fourth quarter of 2024. By comparison, the previous quarter showed a price rise of 1,3%.
4. Trend: prices continue to rise gradually
In our market report for the third quarter of 2024 we already noted that the trend of slower rising property prices started to turn around. This has been confirmed this quarter, as for seven quarters in a row prices are higher compared to a year before. The last four quarters have shown average price rise of homes for sale on Costa Blanca above 9%. The first quarter of 2025 shows a notable 10,4% average price rise compared to the first quarter of 2024.
The trend break, with higher price rises than in the previous quarter, started by the end of 2023 in the third quarter with a relatively mild increase of 3,8% compared to a year 2022.
Slower rising property prices were last noted in the fourth quarter of 2022 and continued to slow down in the first half of 2023 until the trend break set in.
Below you find the graphics, prepared by nardia real estate, that show the % of annual price rises of property for sale in Spain in each quarter since 2021. The chart includes the total average price rise (blue line), the average price rise of New Build Homes (orange line) and the average price rise of Resale Homes (grey line).
Average Annual price rise per Quarter since Q1-2021 in Spain
Average Annual price rise per Quarter since Q1-2021 on Costa Blanca
Above: Annual Percentage of Price Rise compared to the previous quarter.
© Images: nardia real estate agency. Data source: Registradores.
Of the 50 provinces in Spain 31 noted higher average prices for both existing homes and new build for sale in the first quarter of 2025 compared to the previous quarter.
Below some of the provinces with higher and lower property prices in the last quarter of 2024:
Higher Property Prices (compared to the previous quarter):
Cordoba 19% (previous quarter -3,2%)
Teruel 15,7% (previous quarter -0,8%)
Las Palmas 12,1% (previous quarter -5,4%)
Sevilla 11,5% (previous quarter -0,7%)
Málaga 10,6% (previous quarter -5,4%)
Valencia 3,1% (previous quarter 2,3%)
Alicante 0,7% (previous quarter 2,8%)
Madrid 4,6% (previous quarter 6,4%)
Illes Baleares 1,4% (previous quarter 3,5%)
Lower Property Prices (compared to the previous quarter):
Cuenca -23,6% (previous quarter +28,3%)
Cáceres -15,3% (previous quarter +2,9%)
Castellon -9,3% (previous quarter +6,7%)
Ourense -4,6% (previous quarter +15,6%)
Albacete -3,9% (previous quarter +0,5%)
5. Market Overview First Quarter 2025
National demand for property for sale in Spain was 6% higher than in the first quarter. A total of 156.015 homes were sold to Spaniards. Not only in percentages is the increase important to take into account.
By comparison in the previous quarter 147.565 homes were sold to national buyers and in the third quarter of 2024 141.867.
The number of homes acquired by national buyers is on the rise
Long term comparison: in the third quarter of 2023 only 118.519 homes were sold to a national buyer and in the fourth quarter of 2023 even less homes, being 110.237.
In our previous market reports in 2024 we predicted that a rise in national demand was coming for both apartments for sale and villas for sale in Spain. This rise is now clearly present and shows in the result of the first quarter of 2025. It is expected that national demand will remain high in 2025.
In June the European Central Bank lowered the interest rates in Europe with 0,25%. The reduction was applied to all three of the key interest rates in Europe. The reduction of the interested to be paid on a mortgage provides more financial capacity to lenders, and consequently causes more national buyers in the market.
Low interest rates will continue to further drive national demand.
Costa Blanca is located in the Comunidad Valenciana region. The region is very popular with international home owners, experienced international travellers who often have lived or spent some time in Asia and Latin America and who are looking for a relaxed and safe life style while closer to home. We notice a rise in North Americans, including Mexicans, who are looking for a home in Spain. This while demand from Dutch, French, German and Scandinavian clients also keeps high.
Quality villas for sale on Costa Blanca tend to sell fast when the quality, price and location are right. With 27.379 homes sold Comunidad Valenciana is the third region of Spain with a large market share of 15.62% of the total Spanish property market (Q4-2024 16.25%).
In Alicante 13.689 (Q4 13.584) homes were sold in the first quarter. This is 0,8% more than in the previous quarter.
6. Comunidad Valenciana & Costa Cálida
In the Comunidad Valenciana region, where Alicante and Costa Blanca are part of, house sales rose with 11,6% compared to the same period in 2024.
A total of 105.800 homes were sold in the Comunidad Valenciana in the last 12 months (in Q1 2024 103.515). In that same 12-month period price levels in the region rose with 9,9% on average compared to a year before and rose with 0,4% compared to the previous quarter. In the first quarter of 2025, 0,7% less homes were sold with 27.379 properties sold.
In the first quarter of 2025 onCosta Blanca, province of Alicante, 13.689 homes were sold and property prices rose by 0,3% for existing homes and with 1,5% for new build homes when compared to the previous quarter.
Compared to the last 12 months the Costa Blanca shows a rise of 9,7% in homes sold. In the 12 months from the first quarter of 2024 to 2025 a total of 52.744 homes were sold. Property prices rose with 10,8% on average on Costa Blanca in that same period.
In Murcia, where Costa Cálida is, an overall price decrease of 2,9% compared to the previous quarter was noted. When split by property type we see that new build homes sold for much lower prices on average with a 12,4% decrease while existing homes sold for 0,8% less.
On Costa Cálida in the last quarter 7.312 homes were sold. This is 20,6% more than in the previous quarter (previous quarter showed a drop of 3,3%)
On an annual basis Murcia shows a rise in demand; 24.826 homes sold in the past 12 months. Being on average 16% more than in the previous 12 months period. The number of new build homes sold was 25,9% higher than a year before.
7. Market Sentiments
Our teams knows the market, we frequently receive invitations from property developers to visit upcoming build sites, new projects and opening parties of show homes. For resale homes we have an extensive network of real estate agents and are also connected to a group of real estate agents that share a database of homes for sale. Similar to an MLS service in the United States. The team stays in touch with the market at all times to make sure we can be absolutely confident to inform our clients the best possible way when it comes to a property valuation and making that important choice for your home in Spain.
We combine our market knowledge with insights into market trends and this positions us as the go-to agency for serious clients who are looking for a problem-free property investment.
8. Trend: Buy-to-Rent
With rising demand for holiday rentals and long-term rents, investing in buy-to-let properties in Spain offers strong returns. Key factors driving this trend:
High occupancy rates in prime coastal areas like Costa Blanca and Costa Cálida.
Short-term holiday rental demand increasing due to record-breaking tourism numbers in Spain.
Medium-term rentals for 2 weeks up to a few months also have a strong demand due to aging population and remote working.
Learn more about rental investment opportunities in Spain read the *[blog on our website about property rentals and the new rules](https://www.nardia.es/news/article/37/nieuwe-regels-voor-toeristische-verhuur-costa-blanca-comunidad-valenciana)that came into force in August last year.
9. Your Investment Partner in Costa Blanca
At nardia real estate agency, we’re more than just estate agents; we can be your partners to find that particular home in Spain.
The majority of our clients are experienced professionals themselves too, or business owners, with a certain living standard and equally high expectations. Our team is eager to match and surpass your expectations. This is often a time consuming process. As our client you can be sure that we will respect your time and to be as effective and transparent as possible. As a professional team of real estate agents, we absolutely know the property market and understand what you as our client require.
In return we also expect our clients and investors to respect the efforts put at work and the time invested to provide a high level real estate service.
What makes us different?
You can reach us by phone even at odd times of the day
You can always count on us. Also once you have bought a home we are available for our clients.
We work with the majority of property developers and can tell you the difference between one builder and the other.
We make sure that the homes we sell are correctly registered in the property registry
We make sure that there are no complaints filed by the town hall against any property we sell
We make sure that there are no registered debts on any property we sell
We are here to help. We know the market and understand the rules of the game!
How can we help you?
10. Foreign Demand
Of all 181.625 homes sold in Spain in the first quarter, 14,1% was bought by a foreign investor (14,48% in the previous quarter). A total of 25.609 properties were sold to a foreigner (24.985 in the previous quarter).
The quarterly percentages remain amongst the highest in history. The highest percentage of foreign buyers was noted in the third quarter of 2023 with 15,44%.
In the first quarter of 2025 9.074 more homes were sold in the whole of Spain than in the previous quarter. That is a rise of 5,26 % (previous quarter rise was 3,57%).
National buyers bought 8.449 more homes with a total of 156.015
International buyers bought 624 more homes with a total of 25.609
Above: Spain National / International Buyers in the first quarter of 2025.
© Images: nardia real estate agency. Data source: Registradores.
Above: Comunidad Valenciana National / Internation Buyers in the first quarter of 2025.
© Images: nardia real estate agency. Data source: Registradores.
Above: Costa Blanca National / Internation Buyers in the first quarter of 2025.
© Images: nardia real estate agency. Data source: Registradores.
Q1-2025 Foreign Demand by Region
Comunidad Valenciana 28,3% foreign demand (29,62% Q4)
Alicante 43,67% foreign demand (45,67% Q4)
Murcia 20,42% foreign demand (22,84% Q4)
Canary Islands 24,63% foreign demand (24,48% Q4)
Balearic Islands 30,03% foreign demand (32,81% Q4)
Andalusia 14,23% foreign demand (13,98 % Q4)
Málaga 34,75% foreign demand (32,35% Q4)
11. Why Costa Blanca? A Hotspot for International Buyers
Costa Blanca continues to be a top choice for foreign investors, retirees, digital nomads and second-home buyers. Here’s why:
Optic Fiber Internet: 87,4% of Spanish homes have access to optic fiber internet. Spain is the 3rd country in Europe in terms of optic fiber coverage.
Exceptional Climate: Over 320 sunny days per year, making it a year-round destination.
High Rental Demand: Short-term and long-term rental markets are booming due to tourism, expat and national demand.
Strong Investment Returns: Average New build prices in Spain increased 4,8% in the last 12 months, ensuring solid capital appreciation.
Quality Healthcare & Infrastructure: World-class private hospitals and multilingual services available.
Quality International Schools at a fraction of the cost of private education in the USA and other European countries.
Affordable Cost of Living: Significantly lower than in Northern Europe, with great value on luxury properties.
Most popular villages to buy a home on Costa Blanca are Javea, Altea, Benissa, Moraira, Villajoyosa and Benidorm.
12. Nationalities that bought the most homes in Q1-2025:
· British 8,2% | 2.086 homes
· Germans 6.4% | 1.606 homes
· Dutch 6.1% | 1.530 homes
· Moroccans 5,9% | 1.310 homes
· French 5,1% | 1.298 homes
· Romanians 5,17% | 1.221 homes
· Italians 4,8% | 1.178 homes
· Belgian 4,8% | 1.208 homes
· Polish 3,9% | homes sold unavailable
· Chinese 3,73% | *
· Ukrainians 3,42% | *
· Swedish 2,49% |
· Russians 2,11% | *
· United States 2,03% | *
· Irish 1,74% | *
· Bulgarian 1,0% | *
· Czech Republic 0,98% | *
· Norway 0,98% | *
13. Foreign Buyers by Global Region
In the first quarter of 2025 in total 25.609 homes were bought in Spain by a foreigner.
Below you find the percentage of these foreign buyers divided by global region.
· European Union 54,58%
· Europe 19,63%
· Africa 8,56%
· Asia 7,82%
· South America 5,07%
· North America 3,47%
· Central America & Caribbean 0,74%
· Oceania 0,13%
14. Mortgages
In Spain a total of 181.625 homes were sold in the first quarter and 119.026 were financed with a mortgage (Q4-2024: 123.897). In other words, 65,53% of all homes sold in Spain was financed (Q4-2024 71,8% and Q3-2024: 65,6%).
Above: Spain Mortgage Financing in the first quarter of 2025.
© Images: nardia real estate agency. Data source: Registradores.
In the first quarter 4.871 mortgages less than in the previous quarter were granted while the total number of homes sold increased with 9.074.
In previous quarters the rise in homes sold in absolute numbers was supported by an increase in the number of mortgages granted.
This first quarter of 2025 shows that more homes were sold while less mortages were granted. The rise in homes sold of 9.074 was supported by buyers and investors who did not require a loan.
In previous market reports we have underlined that increased access to mortgage financing has a positive effect on the number of homes sold. This quarter the rise in homes sold has not been supported by mortgage financing.
This can be seen as a strong indicator of the sentiment in the Spanish market where property buyers are confident prices will continue to rise and decide to put their savings at work to buy a property.
The total amount of mortgages granted was 6,3% lower than in the previous quarter.
Average Mortgage amount
In Spain the average mortgage granted is 156.128,- euros (previous quarter: 152.693,- euros). Of all new mortgages granted 67,13% opted for a fixed interest rate.
The average fixed interest rate this quarter was 3,17% (previous quarter 3,36%).
Interesting fact: the lowest historic average interest rates were reached in 2022 with only 2,24%.
The average repayment term is 25,25 years (Q4-2024 25,33) with an average monthly instalment of 745,30 euros (Q4 743,40,- euros).
Mortgage and monthly income
On average mortgage payments require 32,4% of the monthly income (previous quarter 32,6%), with exceptional high efforts of 59,1% of the monthly income on the Balearic Islands (previous quarter 59,5%) and 40.5% in Madrid (previous quarter 40,2%).
15. Trend: Mortgages more attractive?
The percentage of property investors in Spain that pay the purchase price in full without the need of financing is still considerable. 34,47% of all properties sold in Spain are paid in cash.
In our market reports for early 2024 we noted that we believed a trend was becoming visible of more homes being financed with a mortgage. Although this line did not continue in the second quarter of 2024, the third and fourth quarter of 2024 showed that more homes were financed with a mortgage.
Contrary to our expectations included in our Market Report for Q4-2024, in the first quarter of 2025 less homes were financed with a mortgage. Both in absolute numbers as in percentage of the total market property buyers requested less mortages.
We will need to wait for the official numbers of the following quarter to see what the market brings. Although we expected a statistical trend to be established in the first quarter, this has so far not been the case.
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16. The Spanish Economy
Inflation:
The Spanish economy continues to perform well. In 2025 various interest rate cuts have been announced by the European Central Bank. This made more financing available to both businesses and families. Although the rise in homes sold has not been supported by a similar increase in mortgages granted, the availability of mortgages does add to the market sentiment we believe.
In terms of tourism and visitors 2025 is on it´s way to break all records again. In April Spain received 8,6 million visitors. That is 10,1% more than in April 2024. The first four months of 2025 showed an increase of 7,1% compared to the previous year, with 25,6 milllion visitors in total. According to the official data from the Spanish Ministry of Industry and Tourism.
The inflation in Spain was in April 2025 with 2,2%. Just below the European average of 2,4%.
Employment Q5
In the first quarter of 2025 0,7% more jobs were created than in the previous quarter according to the Spanish National Statistics Institute (INE).
Company Formations
April 2025 in the whole of Spain 11.877 new companies were created. That is 0,2% less than in the same month in 2024.
Since the second quarter of 2021 the number of company creations has been above 100.000 per year.
The vast majority of new business are created as Limited Liability Companies.
Interesting fact: in 2024 a total amount of 926 companies left the Spanish region of Catalunya (and 575 companies moved to the region). The decision to move a corporate seat out of the region is most probably due to the political situation in the region where separatist parties are still trying to force the Spanish government to hand over authority and power.
Insolvency proceedings
In April 2025 341 companies filed for bankruptcy. 22,1% less than in the same month in 2024.
17. Market Outlook
We maintain our forecast as included in our previous market reports: the number of homes sold in Spain will continue to rise.
Our team expected that the improved mortgage lending capacity would be reflected in the number of homes sold. For the first quarter of 2025 the improved mortgage lending capacity has not had an impact on the number of homes sold. The funds are available and the buyers are in the market. In our view it is a matter of time until home buyers who require mortgage financing strike.
For the second quarter of 2025 we expect a small rise in the number of homes sold combined with a higher percentage of mortgages granted.
For the year 2025 we maintain our expectations of the market and high level property demand.
Altough the European Central Bank has not announced any further interest reductions, we believe that the current level of lendig capacity is adequate to support the demand in the market.
Our expectations of increased mortgage lending further down 2025 are unchanged.
We also maintain our point of view that the shortage of quality homes, the high national and foreign demand combined with the availability of mortgages will lead to a further gradual rise in housing prices.
Our team
As a team we have a strong connection with the real estate market, we have been in the business since 2013 and speak with buyers and sellers literally every day of the week. Our aim is to stay one step ahead of the game and inform our clients based on facts and numbers.
We love to deliver! This we do through our extensive network where we deal directly with the best property developers, top quality construction companies, international investment funds, Spanish banks and real estate portfolio managers in Spain and abroad.
18. A 10-year Outlook on the Spanish Property Market: 2024-2034
First published and included in the Q1-2024 market report on june 2, 2024.
Based on the available economic data, market trends we spot and international attention for Spain we believe that the property market in Spain´s most sought after areas will grow significantly in terms of demand and price in the next 10 years. The supply is unlikely to get up to speed with demand and this is expected to keep price trends to be upwards on average year-on-year with possibly quarterly contractions.
In the next 10 years, i.e. by 2033, we expect property prices to double in the markets with high demand. Being these high-demand markets in Spain: Costa Blanca, Valencia City, City of Madrid and Andalusia.
On the Balearic Islands we expect a strong price increase, perhaps as much as 60%, but not as high as in the other areas. How the property market in Catalunya and the city of Barcelona will develop will largely depend on the political situation in the region in the years to come.
At nardia real estate agency we are confident for the long term future and look forward to help you as our client for many years to come!
About this Report:
The information used in this report is freely available on the website of the Spanish Property Registry, National Institute for Statistics (INE), the Spanish Company Registry, Chamber of Commerce of Spain, EuroStat and possibly other publicly available sources.
This Housing Market Report for the Spanish Property Market for the First Quarter of 2025 has been written by Tom Bruijnzeel. He is the author of this informative Market Report about the Spanish Real Estate Market including the Market Outlook and the 10-year-outlook on the Spanish Property Market 2024-2034 plus other articles and property market reports on our website.
Tom has a master degree in Law from the University of Rotterdam (the Netherlands), holds a bachelor degree in Business and Economics and is fluent in Spanish, French, English and Dutch with full business proficiency in German. In 2013 he started nardia real estate agency in Spain. The website www.nardia.es is available to all who are thinking of investing in a property in Spain or already own a property and have questions about property tax in Spain, the correct registration of a property in Spain or the taxes due when selling a house in Spain.
If you want to connect via Linkedin: linkedin.com/in/tombruijnzeel
