Forecast Alert! What You Need To Know About Property Prices In Spain In 2025

As we start to make our descent to the end of the year, it’s the perfect time to start thinking about what might happen to property prices in Spain in 2025. 2024 has been an interesting year for the Spanish property market, especially for those selling their properties in the country.

We’ve seen property prices and interest rates rise much faster than expected. So will this trend continue? Will property prices continue to increase into 2025? Or will it be good news for prospective buyers with prices finally starting to fall?

Here’s a full review of the property price forecast in Spain for 2025:

What Can We Expect To Happen To Property Prices?

It doesn’t matter whether you want to buy a property in Spain or sell a Spanish property. One of the main things people want to know about when taking about the property market is property prices. Will they go up or down? This is a key talking point for both the rental and purchase market.

If you have even a passing interest in the Spanish property market then you’ll know that property prices in the country have only increased over the past 12 months. Even with rising interest rates and inflation, property prices haven’t blipped as a result.

We know that there will be continued high property demand in Spain as we go into 2025. And when demand remains high, we can also expect property prices to remain high too. So will there be any moderation? Or any period of respite for families keen to finally get on the property market? Not if the current market forecasts prove to be correct. Both banks and property experts have suggested that prices will continue to rise into 2025.

The property firm Solvia have stated that “property sales are expected to decline this year but rise next year, with prices projected to increase by approximately 3 percent in both 2024 and 2025.”

How Many Property Sales Can We Expect To See In 2025?

Demand for property in Spain is high, and has been consistently high. Despite this, the most recent data shows that there was a slight decline in total property sales until this point in 2024. This has been paired with a small increase in property prices and a huge increase in rental prices.  All of these trends are expected to continue into 2025.

This isn’t due to a lack of demand for properties, but because of a lack of availability of properties on the market. When a property does come to the market, the demand for that property is almost always significant.

This was confirmed by the same Solvia research which stated that "The persistent lack of properties continues to put pressure on the market, and combined with constant demand, will sustain this upward trend."

Forecasts from Bankinter, which is one of the main Spanish banks, confirms this summation. The Bankinter forecast predicts that 2024 will see a 6% rise in property prices, and then 2025 will see an additional 4% increase in property prices. So property prices will continue to rise, but they will also slow.

Caixabank, another large Spanish bank, agrees with Bankinter that property prices will rise but disagrees with the scale of this growth. They are forecasting a 2.8% increase in property prices over 2024.

What Else Can We Expect To Happen To The Spanish Property Market In 2025?

We know that property demand will continue to be high in 2025, and we also can see reputable predictions that property prices will rise too. But what else can we expect to happen to the Spanish property market next year? Inflation and interest rates will continue to be significant factors in property price. Economic and political factors can also impact property prices.

We know that rental prices in Spain are sky high and that they only continue to spiral. The Spanish government is under increasing pressure to bring these high rental prices under control. Property sale prices are experiencing the same increase, but with less public scrutiny. What we do know is that housebuilding (or the lack of housebuilding) has long been a problem in Spain, and this is contributing to the lack of availability of properties to purchase in Spain. This isn’t a problem that can be fixed quickly, but it does need to be fixed.

Solvia experts state that “projections for 2025 indicate that new housing construction may not reach the levels needed to meet demand, which could continue to drive prices upwards, especially in the most in demand urban areas.”

Are you thinking of moving to Spain? Dream of retiring away from the cold and rainy weather in the UK and making an escape to the sun? Then why not get in touch with our local property experts, who are perfectly placed to help you buy the Spanish home of your dreams. We’re excited to help you make your next move your best move!