The Spanish Real Estate Market in 2024
11/01/2025
2025-01-11 10:57
In recent years, Spain's real estate market has been known for its price stability with an upward trend. According to expert forecasts, this trajectory remained unchanged in 2024. The past 12 months marked a period of consolidating economic growth and strong demand for housing, coupled with a gradually shrinking supply of new properties. Combined with perfect weather, picturesque landscapes, and the welcoming nature of Spaniards, it’s clear that the Iberian Peninsula is a prime spot to invest in 2025. Finding a property here could be a wise investment—whether for rental income or potential future resale profits.
Spain has long attracted investors from around the globe. With its beautiful climate, stable economy, moderate price growth, lower cost of living compared to other European countries, and ever-improving infrastructure, Spain provides an appealing environment for those looking to invest their money in this part of Europe.
Rising Property Prices in Spain
It’s safe to say that 2024 solidified the position of Spain’s local real estate market. Driven by consistent economic growth, high demand, and limited supply, property prices rose by over 8% last year. In the first three quarters alone, the nationwide increase reached 8.1% year-on-year, with Andalusia and Malaga showing growth of 8.3% and an impressive 17.9%, respectively.
Projections for 2025 indicate a continuation of this trend, though at a more moderate pace than in previous years. According to S&P Global's report, property prices in Spain are expected to rise by around 3% in 2025. Forecasts for the following years suggest further increases—2.4% in 2026 and 2% in 2027. For investors, this signifies a gradual slowdown in growth but a continued stable market nonetheless.
More Than Just Price Growth
2024 also saw an increase in the number of registered property sales and mortgages. In the third quarter alone, nearly 110,000 transactions were financed through banks, with the highest number—over 23,000—recorded in Andalusia. Attractive interest rates, currently among the lowest in Europe (around 3.5%), encouraged buyers to leverage bank financing. Unsurprisingly, this appealed not only to local investors but also to international buyers.
Costa del Sol: A Hotspot for Property Buyers
Vacation hotspots remained highly popular among investors in 2024, especially properties along Spain’s coastline. Data from Registradores de España reveals that in the third quarter of 2024, foreign buyers purchased every third property in Malaga province, which includes the Costa del Sol—double the national average. In popular tourist regions like the Costa del Sol, properties attract significant interest from those seeking a second home as well as investors targeting short-term rental opportunities.
Polish Investors Among the Top Buyers
In recent years, Polish buyers have climbed the ranks of foreign investors. Throughout 2024, Polish investors sought safe and profitable destinations in sunny Europe. Between July and September 2024 alone, they purchased nearly 1,300 Spanish properties—30% more than the previous quarter and a staggering 62% increase compared to the same period in 2023. By the end of the third quarter, Polish buyers had secured fourth place in Registradores de España's ranking, with 3,101 transactions recorded. For context, in all of 2023, Polish investors purchased 3,118 properties, breaking the record set in 2022.
Continuation of Trends in 2025
The Iberian Peninsula’s real estate market offered a wealth of opportunities in 2024. Investors focused on rental properties, flipping second-hand homes, and long-term savings through the purchase of so-called second homes. All signs indicate that 2025 will continue the trends established last year, promising yet another exciting chapter for Spain’s thriving property market.
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