Spain real estate market outlook report 2025 - July 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.  

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

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 property investors," observes Martin Dell, co-founder of Kyero. "The country's ability to maintain robust GDP growth at a time of global uncertainty, 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, which will be music to the ears of anyone looking to rent out their property for income. 

Politically, Prime Minister Sánchez’s minority coalition is wobbling after a fresh wave of scandal 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 electoral campaigns, so if it comes to it, make sure you allow extra lead time. 

"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've got a healthy market on our hands. 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."

Where to buy property in Spain 2025 

We have crunched the numbers and asked the experts, here are the best places to buy property in Spain this year: 

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 budget inspiration, check out our handy where to buy cheap property in Spain in 2025 article for advice on the best locations if you have a small budget. 

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.  

Who is buying property in Spain 2025

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, behind the Dutch and Germans, 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.

Latest Spanish property market news buyers should be aware of

The 100 % tax soap opera - latest information you need to know

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 proposes a 100 % surcharge on the transfer tax (ITP) for resale property purchases by non-EU, non-resident individuals, effectively doubling the tax bill, not the full purchase cost. The levy wouldn’t apply to new-builds (which are taxed under VAT), and regional exemptions would apply in the Basque Country and Navarre. Crucially, and we can't stress this enough, the surcharge would not apply if you become a Spanish resident before purchasing.
 

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 in Spain – 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 your tapas and sherry consumption via letting out your Spanish 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.). 

Outlook for the rest of 2025

Spain’s property market in mid-2025 is like a good paella: sizzling hotspots on the coast, meaty inland value, and the occasional policy mussel you’d rather not chew on.

We expect around 650,000 property sales this year, edging past 2024’s total. Prices should rise 6–7% nationally, with about a third of towns seeing gains near 10%, driven by chronic undersupply and the prospect of cheaper mortgages later in the year. Hotspots remain the usual suspects: the Balearics, Málaga, Alicante, Madrid and Barcelona. But Almería and Murcia continue climbing, and inland provinces like Jaén, parts of Aragón and Extremadura are pulling in more adventurous, budget-conscious buyers. 

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

Five smart moves for buyers right now

1. Budget for the extras. Taxes, fees and stamp duty add 10–14% - plan accordingly.

2. Check the paperwork. Tourist licences and new rental rules matter - and vary regionally.

3. Think long-term. Climate-proofing and energy efficiency affect future resale value.

4. Get your finances lined up. Mortgage pre-approval or proof of funds speeds everything up.

5. Know your exit plan. Resale timelines vary - a Madrid flat sells faster than a rural finca.

Raise a glass — the second half of 2025 looks just as rewarding as the first. ¡Salud y buena compra!