The real estate market in Spain offers attractive prospects in 2025 for those seeking new opportunities. While the housing market in other European countries remains stagnant, Spain continues to experience steady growth in many regions. Coastal areas and larger cities, in particular, are seeing increasing demand and significant value appreciation.
For entrepreneurs looking to invest in Spain or relocate, this presents promising opportunities. With the right strategies, real estate can be optimally utilised as an investment or as a foundation for business activities. In this article, you will learn which regions are particularly interesting, why buying a house in Spain can be worthwhile, and what developments to expect in the coming years.
Content
- Regional factors play a major role in the real estate market in Spain
- Why buying property in Spain can be worthwhile!
- What is the future of the Spanish real estate market?
- Buying a house in Spain: an investment with potential
Regional factors play a major role in the real estate market in Spain
Price developments in the Spanish real estate market are highly dependent on the region. While some areas show moderate growth, prices are rising significantly in sought-after coastal locations and major cities. Those looking to buy a house in Spain should be aware of regional differences and strategically invest in growth markets.
Coastal regions remain the focus of investors
Demand in coastal areas continues to grow steadily. According to the real estate valuation company Tinsa, prices in these regions increased by 5.7% in the first quarter of 2024 compared to the previous year. This is significantly higher than the nationwide average of 3.3%.
The areas with the highest price increases are:
- Málaga: +9.3% – The Costa del Sol is particularly attractive to international buyers.
- Balearic Islands: +8.8% – Exclusive luxury properties dominate the market here.
- Alicante: +7.2% – A key hub for international tourists.
Ibiza remains a special case. With prices reaching up to €4,191 per square metre, the island is one of the most expensive areas in Spain to buy a house. Demand is focused on luxury properties, while supply remains limited.
Limited supply continues to drive prices
A key factor influencing the real estate market in Spain is the shortage of new builds. While around 260,000 new households are formed annually, the number of newly constructed properties averages only 110,000 units. This imbalance is driving price increases, particularly in high-demand cities such as Madrid and Barcelona.
A great opportunity for entrepreneurs: Those who buy property in Spain’s most sought-after regions can expect continuous value appreciation.
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Why buying property in Spain can be worthwhile!
Whether as a residence or an investment, purchasing real estate in Spain can be a financially rewarding long-term decision.
1. Increasing property values and attractive returns
The price forecasts for 2025 are promising. Banks and real estate platforms predict further increases:
- CaixaBank and Solvia: +4% to +5%
- BBVA: +6%
- Idealista: +10 %
Above-average growth is expected to continue, particularly in coastal regions and economically strong metropolitan areas. Holiday rentals also remain a lucrative option.
2. Making strategic use of tax advantages
Spain offers attractive tax conditions for foreign entrepreneurs. One particularly interesting option is the Lex Beckham. This scheme potentially allows newcomers to pay only 24% income tax on earnings generated in Spain for the first six years—significantly lower than the regular rates of up to 47%.
GlobalTaxSaving handles the entire process for you, from applying for the Lex Beckham to ongoing tax optimisation. With our support, you can maximise all available tax benefits.
What is the future of the Spanish real estate market?
The demand for housing in Spain is expected to remain high in the coming years. This presents clear opportunities for entrepreneurs and investors, as the limited supply continues to drive prices up.
The number of properties available for sale has declined significantly in recent years. While there were 850,000 available properties in March 2020, this number had dropped to 675,000 by 2024. This shortage is met with consistently high demand, further pushing prices upward.
In highly sought-after locations such as Madrid, Barcelona, and coastal areas, little relief is expected. The Banco de España estimates a shortfall of 600,000 affordable housing units in 2025.
Buying a house in Spain: an investment with potential
The real estate market in Spain will remain a growth market in 2025, offering excellent prospects for entrepreneurs and investors. The combination of rising demand, limited supply, and attractive tax conditions creates ideal opportunities for promising investments.
Those who act now can benefit from long-term value appreciation and tax advantages.
Regions such as Málaga, the Balearic Islands, and the Costa Blanca offer particularly attractive returns—both for residential properties and holiday rentals.
GlobalTaxSaving is your ideal partner:
- Comprehensive service: From consultation to tax processing, we take care of everything.
- Tax expertise: Take advantage of opportunities like Lex Beckham or the Golden Visa for maximum benefits.
- Hassle-free relocation: We handle all administrative formalities and support you every step of the way.
Seize the opportunities Spain offers and let us pave the way for you.
Get in touch today for personalised advice!
