The market is growing – But at different rates
January 2025 marked a strong start to the year with 60,033 homes sold across Spain – an 8.8% increase compared to January 2024. This builds on the impressive performance of 2024, which saw home sales increase by 11.5% to 716,183 transactions nationwide.
However, growth isn't uniform across all regions. The data shows some areas experiencing significantly stronger momentum:
- Canary Islands: Leading with 18.8% year-on-year growth
- Andalucía: Strong performance at 10.4%
- Balearic Islands: Solid growth at 8.3%
- Valencia Region: Steady increase at 7.9%
- Murcia: Consistent growth at 5.6%
For buyers, this means your timing and location choices matter significantly. The Canary Islands market is currently the hottest, while areas like Murcia might offer more negotiating room with a somewhat slower growth rate.
Price trends: Where values are rising fastest
Property prices across Spain rose by 6.9% in 2024, but again, some regions are experiencing much stronger appreciation:
- Balearic Islands: Leading with a remarkable 15.2% increase in price per square metre
- Cantabria: Strong appreciation at 11.0%
Meanwhile, Navarra was the only region recording a slight decrease (-0.9%) in property values.
For international buyers, this highlights the importance of considering both current prices and potential appreciation. The Balearics, while expensive, continues to deliver strong returns, while emerging markets like Cantabria might offer better value with strong growth potential.
Mortgage market: Financing is readily available
If you're planning to finance your Spanish property purchase, the news is encouraging. January 2025 saw mortgage issuance up 9.4% compared to last year, continuing the strong trend from 2024 when mortgage lending jumped by 21.4%.
The average loan amount now stands at €155,592, representing a 4.6% increase year-on-year.
For international buyers, this signals that Spanish banks are confident in the market and actively lending. However, with interest rates potentially fluctuating, securing financing approval early in your property search could be advantageous.
What's driving the market?
Several factors are supporting Spain's property market growth:
1. Tourism recovery: Post-pandemic tourism has rebounded strongly, driving demand in popular coastal areas
2. Remote work flexibility: More professionals can now work from anywhere, making Spanish lifestyle properties increasingly attractive
3. Supply constraints: In many popular areas, especially the Balearics and Canaries, limited new development keeps demand high
4. Economic stability: Spain's broader economic indicators remain positive, with business formation up 7.7% in 2024
Looking ahead: updated 2025 forecast
According to CaixaBank Research, 2025 will likely see continued price growth:
- Over one-third of cities with populations exceeding 25,000 will see property prices jump by more than 10%
- Nationwide price growth projections range between 5.9% and 7.2%
The strongest growth is expected in tourist destinations and major employment hubs, where demand significantly outstrips supply.
Buyer insights: The international perspective
The international buyer landscape continues to evolve, with Dutch nationals now ranking as the third largest group of foreign purchasers in Spain, behind only British and German buyers. Property searches from the Netherlands rose by 19% in early 2025, indicating growing interest from this market.
This diversification of the international buyer pool is a positive sign for the market's resilience and suggests strong continued demand.
Smart strategies for property buyers in 2025
Based on this market analysis, here are practical tips for international buyers looking to purchase in Spain this year:
1. Consider timing carefully: With prices projected to rise significantly in many areas, delaying your purchase could mean paying more. If you're serious about buying, moving forward sooner rather than later might be financially advantageous.
2. Look beyond the usual hotspots: While the Balearics and Canaries show strong growth, their prices are already at premium levels. Regions like Andalucía and Valencia offer strong growth potential with more affordable entry points.
3. Secure financing early: With mortgage activity rising, getting your financing pre-approved will strengthen your negotiating position and potentially save you money if interest rates rise.
4. Balance lifestyle and investment potential: The strongest price growth is occurring in areas with both lifestyle appeal and limited supply. Properties in these areas tend to maintain their value better during any future market fluctuations.
5. Work with local experts: In a fast-moving market with regional variations, having experts who understand both the local market dynamics and the needs of international buyers can be invaluable.
The Spanish property market in 2025 offers exciting opportunities for international buyers, but success requires understanding the nuances of regional trends, timing your purchase strategically, and securing the right support. With the right approach, you can find a property that delivers both lifestyle enjoyment and solid investment potential in this dynamic market.
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