Spain real estate market outlook report 2025 - mid‑year update

Spain property market overview 2025 - July update

Spain ended 2024 with a never‑seen‑before 93,000 homes sold to foreign buyers, which was an astonishing 15 % of the entire market, according to Spanish Notaries data. January and February 2025 then piled on a further 119,000 completions in total, 12 % ahead of the previous year.  

Spain property market highlights - what you need to know in 5 handy bullet points
 

• National average listing price: €2,086 /m² (+6.3 % y/y)
• Sales were up significantly in the following three regions: 
  Balearic Islands +15.2 %
  Canary Islands +18.8 %
  Andalucía +10.4 %.
• Teruel remains Spain’s cheapest province to buy property, boasting asking prices as low as  €55,000, (Kyero, May 2025).
• Alicante province was once again the most popular region with expats, with a jaw‑dropping 43.8 % of all sales going to foreigners, followed by Málaga province with 32.4 % of properties sold to non-Spaniards. 
• New builds are on the up. New-build home transactions in Spain soared 23.4 % in 2024 to 135,052—the highest annual total since 2013 and equal to about 21 % of all property sales, according to the National Institute of Statistics (INE).

Kyero co-founder Louise Dell says: “Home prices keep edging higher because there are still more eager buyers than properties for sale, and mortgages have become a little cheaper. If you’re hesitating, remember: today’s price is likely lower than next year’s.”

Spain's 2025 economic outlook - July update

GDP was 3.2 % in 2024 and is trending toward 2.1 % in 2025 (BBVA Research). Unemployment fell to 10.6 % - the lowest figure since 2008 (although it’s worth noting that Spain’s unemployment rate is still the highest in western Europe), while wages grew 3.9 %, outpacing inflation (2.8 %). Cheaper energy and a eurozone rate‑cut cycle have left mortgage rates flatter than a tortilla de patatas.

"Spain's economic resilience continues to delight investors," observes Louise, co-founder of Kyero. "The country's ability to maintain robust GDP growth while dealing with global uncertainties, speaks volumes about its fundamental strength as a thriving property market."

If cost‑of‑living fears linger, the continuing tourism boom more than makes up for it. Spain welcomed a whopping 85 million international arrivals in 2024. More visitors normally equals more rental demand – a point we’ll return to later in this report.

Politically, Prime Minister Pedro Sánchez’s minority coalition is wobbling after a fresh wave of probes and high-profile resignations, fuelling calls for an early election. Analysts now put the odds of a 2025 snap poll at roughly 40 %, yet all major parties pledge continuity on euro-zone alignment, property rights and openness to foreign capital. The main practical risk for foreign buyers is procedural: planning permits and visa approvals often slow during campaigns, so allow extra lead time. Headline inflation is expected to drift toward 2 % by Q4 as energy prices retreat, reinforcing the rate-cut narrative. 

"The Spanish market is demonstrating remarkable adaptability," comments Alfredo Bloy-Dawson, a property marketing consultant based on the Costa del Sol. "With GDP growth holding steady, inflation at a three-year low, and property sales up 9.0%, we're seeing a market that's both mature and dynamic. Yes, the cost of living isn't what it was pre-pandemic, but Spain still offers compelling value compared to Northern Europe – and buyers know it."

Spanish property market Investment opportunities: where to put your euros in 2025

Spain’s 2025 hotspots
Alicante and Málaga provinces rule the roost when it comes to foreign property investment. Over in Alicante, the Valencia Notary Association reckons non‑Spaniards pumped €6 billion into the province in 2024 – almost rivalling the area’s industrial exports. Torrevieja’s nightlife, Nerja’s stunning beaches, and Los Alcázares’s property bargains top the list of most popular locations for foreign buyers in Spain in 2025. “Los Alcázares gives you beach-and-tapas bliss for under €200k,” notes Daniel Marín, owner of SpanishPropertyExpert.

Luxury buyers continue their love affair with Ibiza, Mallorca, and the Costa del Sol. “Ibiza is ‘becoming the Monaco of the Med,’” says Claudia Zezukiewiets, Let Us Ibiza, based in Ibiza, while the Marbella–Estepona corridor still flexes its million-euro muscles.

Top locations in Spain for foreign property buyers in 2025
(Based on the most-searched destinations in each province on Kyero)
 

Cheapest places to buy property in Spain according to the latest Kyero data

Vélez-Blanco, Almería – castle-crowned pueblo blanco with property prices from €75k
Hacienda Riquelme Golf Resort, Murcia – fairways & pools from €126k
Gea y Truyols, Murcia – rural calm near the city at €130k
Albox, Almería – almond-scented valleys around €145k
Canillas de Aceituno, Málaga – mountain-meets-Med vistas for €149k

For more inspiration, check out our handy where to buy cheap property in Spain in 2025 article for advice on the best locations for property investments in Spain. 

Hidden gems and emerging hotspots for 2025

On the Costa del Sol, La Cala de Mijas has vaulted into the spotlight; Sebastian Bromley-Bockweg of Bromley Estates Marbella calls it “the next hot postcode,” a forecast set to crystallise when the town’s new 320,000 m² coastal park opens this summer.

Up on the Costa Blanca, Nadine Starck from Starck Estates tips Pedreguer, Beniarbeig and the Orba Valley as the east coast’s coming trio, prized for sea-cooled evenings, panoramic valley vistas and villas still trading below €300k.

Further south in Almería, Daniel Marín describes Mojácar as “exclusive yet unspoiled,” while nearby Vera Playa mixes surf, sunsets and mojitos without the premium. Inland value is led by medieval Teruel province in Aragón, where entire townhouses still change hands for about €55k, and on the Cádiz coast Lorraine De Marco of Space Real Estate urges buyers to ride the “Sotogrande ripple” into pretty Alcaidesa before prices catch up. While Shirin Sharifi, Sales Director at the Spanish Estate Agent on the Costa del Sol, recommends Manilva and Duquesa Port for value. Inland, David Laver, co-owner of Ideal Country Property suggests Alhaurin de la Torre, Coin, and Cartama as excellent lifestyle choices on a budget.

Offshore, John Goldacre of GoldAcre Estates reports a run on new-build and off-plan homes in Caleta de Fuste and Corralejo, while Jacomo Waldherr at Forum Inmobiliaria says neighbouring Lajares is fast becoming the Canary Islands’ next hub for remote workers. Tomorrow’s hotspots are still affordable today - if you move quickly.

For more inspiration, check out our handy where to buy property in Spain in 2025 article for advice on the best locations for property investments in Spain.  

The 100 % tax soap opera (episode 2)

Back in January the Spanish Prime Minister lobbed a political grenade by proposing a 100 % tax on non‑EU, non‑resident buyers. Cue panic headlines, frantic calls to your lawyer, and a news frenzy on 22nd May, when the government confirmed it would indeed attempt to push the legislation through Parliament.

What does this mean for non-EU, non-resident buyers, in a nutshell? 
Spain’s draft bill would slap a 100 % transfer tax on any resale home bought by non-EU, non-resident buyers, effectively doubling the purchase cost. The levy wouldn’t touch new-builds, the Basque Country or Navarre, and it vanishes if you secure Spanish residency first. 
 

Here is everything we know so far about the 100% tax of foreign buyers announcement. It’s only a proposal for now - parliament could amend, delay or kill it - so you still have at least several months to rethink your buying strategy, but fast‑tracking your purchase could buy you peace of mind.

Visas & residency – life after the Golden Visa

Spain’s Golden Visa closed on 3 April 2025. A niche program that only applied to approximately 2 % of foreign buyer property purchases. Your alternative routes are:

• Digital Nomad Visa – remote workers earning €2,140 +/month. Speaking of digital nomads - Spain now ranks #1 in VisaGuide’s 2025 Digital Nomad Index.
• Non‑Lucrative Visa – sufficient passive income; great for retirees.
• Five‑year family permit – from 20 May 2025, non‑EU relatives of Spanish citizens can live and work immediately, with the dependent‑child age cap rising to 26.

Looking for a deep-dive on Spanish visas? Watch immigration lawyer Melanie Radford walk you through Spain’s main visa options, application timelines, costs, and the 2025 rule changes—all in under ten minutes. It’s the perfect companion to this guide if you like learning by listening. Or if you'd like to read about the best visa options for you, check out our handy comprehensive guide to Spanish visas. 

Short‑term rental rules 2025 – the new playbook

Thinking of funding the tapas and sherry consumption via letting out your home for part of the year? Spain’s short-term rental rules are changing. Here’s what you need to know:

1. National Register – operational since Jan 2025; it’s now compulsory since 1 July 2025 for any property advertised on online platforms that facilitate booking/payment to be registered.
2. Community votes – blocks of flats now need a 60 % owners’ majority for applications to allow holiday rentals if your licence was issued after 3 April 2025. Earlier licences are guaranteed – for now.
3. EU Regulation 2024/1028 - Rental platforms must delist unregistered properties; fines will apply for rogue hosts.
4. Regional overlay - Andalucia and Murcia are already demanding extra hoops for owners to jump through (fire safety, square‑metre minima, etc.). 

Lorrainne De Marco, estate agent at Space Real Estate, who have offices on the Costa del Sol, Costa Blanca and Costa Calida says: “Licence clarity is buyers’ #1 question. Communities will vote at the next AGM – minutes will be gold dust for applications.”

Who is buying property in Spain: a changing of the guard

British buyers, who commanded a whopping 38% of foreign buyers in 2008, now represent a more modest 8.5% of the market. 

"The market is experiencing a fascinating diversification," observes Louise Dell, Kyero's co-founder. "While traditional Northern European buyers remain significant, we're seeing emerging interest from unexpected quarters." Indeed, Polish buyers have muscled their way to fourth place, now acquiring Spanish properties at nearly the same rate as the British.

Age demographics paint an equally intriguing but not entirely unsurprising picture. The 55-64 bracket dominates with 37.8% of buyers, suggesting that dreams of Spanish retirement remain alive and well, even if they now come with a side order of remote working hustle. Meanwhile, younger buyers (35-44) have declined by a sobering 38%.

"We're seeing new buyer nationalities, including Eastern Europeans such as Hungarians, alongside continued interest from Canadian buyers," notes Sofia Sanchez Watson from the Costa Blanca, while Mia Pearlman reports a surge in interest from the Netherlands on the Costa del Sol, proving that the Dutch know a good thing when they see it.

Spanish property market trends to look out for - second‑half 2025

1.Price polarisation widens. Moraira’s average listing (€1.5 m) is quadruple the typical enquiry budget of a foreign buyer (€350k). Meanwhile inland bargains (<€150k) are getting more and more popular, with international buyers sacrificing a seaview for a reasonably priced countryside retreat.

2. Bigger homes dominate. Sub‑60 m² city pads are losing market share; hybrid working families crave space for flexible living and paddle boards.

3. Infrastructure upgrades fuel micro‑booms. Alicante‑Elche’s €19.8 m terminal overhaul finishes in November, while Madrid‑Barajas’ monster expansion (90million pax by 2031) is already nudging surrounding resale prices. Keep an eye on the long‑planned Huelva Cristóbal Colón Airport – still just sand and seagulls, but speculation is bubbling along the Costa de la Luz.

4. Supply bottlenecks persist. New‑build share may hit 25 % by December, but build‑licence delays and labour gaps mean it can’t fill the hole. Marc Pritchard, Sales & Marketing Director of leading developer Taylor Wimpey Spain says “hardly any stock properties are available – we simply have fewer homes to sell.”

5. “Sustainability and smart‑home features are no longer ‘nice‑to‑have’ – they’re deal‑makers,” notes Sebastian Bromley‑Bockweg of Bromley Estates Marbella.

Predictions for the Spanish property market the second half of 2025: optimism ahead

• National prices: Home prices are expected to rise about 6-7% in 2025. Roughly one-third of medium-to-large towns could see gains near 10%. That’s mostly because there still aren’t enough homes for sale and mortgages are expected to get a bit cheaper later in the year.
• Sales volume: We forecast around 650,000 sales in 2025, just above 2024’s total. Activity should stay brisk early on, then cool toward year-end once the excitement over lower interest rates fades.
• Hotspots: The coast (Balearic Islands, Málaga province, Alicante province) and the big cities (Madrid, Barcelona) will stay the busiest markets. While Almería and Murcia provinces continue their rise in popularity and budget-friendly inland spots such as Jaén, parts of Extremadura and Aragón will draw in more adventurous buyers.
• Policy risks: Two things to watch: the proposed 100 % tax on quick flips (vote due in October) and a new national rental register that started in July 2025. Either move could shake confidence for a short spell, but any dip in prices may give prepared buyers a brief buying opportunity.

Martin Dell, Kyero Co-founder says “In 2025, every month you wait adds cost: a €300k home today could edge past €320k by next summer. Early movers will get more sunshine for their money.”

Conclusion

Spain’s mid‑2025 property landscape resembles a well‑cooked paella: a few sizzling hotspots, juicy prawns of opportunity inland, and the occasional political mussel you’d rather set aside. Record foreign demand, a resilient economy and chronic undersupply keep the upward pressure on prices, while new transparency and rental rules nudge the market toward greater professionalism.

Five things every 2025 buyer should remember

1. Budget for the full ticket. Factor in 10-14 % on top of the purchase price for taxes, legal fees and stamp duty. It’s still the biggest surprise cost for many newcomers.
2. Licences, licences, licences. Whether it’s the new national rental register or regional tourist permits, verify every permission before you sign; retrospective fixes are slow and expensive.
3. Future-proof the property. Ask about insulation, solar potential and flood risk - utility bills and climate-resilience are already major drivers of resale value.
4. Lock in your financing early. Rate cuts are welcome, but slow bank pipelines mean mortgage pre-approval (or proof of funds) is the difference between winning and losing a bid.
5. Think exit as well as entry. Check local resale times and who the next buyer might be; liquidity varies wildly between a Madrid flat and a rural finca, and that affects your long-term returns.

Raise that glass of cava - the second half of 2025 shows every sign of being as rewarding and maybe even more exciting than the first. ¡Salud y buena compra!