Market analysis – March 2025

Thinking about buying a property in Spain this year? You’re not alone — and you’re entering a market that’s showing strong and sustained growth. Fresh data from Spain’s Notaries, Land Registry, and CaixaBank offers valuable insights into the current landscape, helping you make smarter, better-timed investment decisions.

Let’s explore what’s happening across Spain’s property scene and what it means for you as an international buyer in 2025.

A Growing Market – With Regional Variations

2025 is off to a strong start. January saw 60,033 residential properties sold across Spain — up 8.8% compared to January 2024. This follows an already strong 2024, where overall sales rose by 11.5%, reaching over 716,000 transactions.

But growth isn’t evenly spread. Some regions are outperforming others:

• Canary Islands: Leading with a stunning +18.8% in sales
• Andalucía: Solid performance at +10.4%
• Balearic Islands: Up by +8.3%
• Valencia Region: Gaining +7.9%
• Murcia: Modest but steady at +5.6%

📌 What this means for buyers: Location matters. The Canary Islands are booming, suggesting a competitive market. In contrast, slower-growing regions like Murcia may offer better negotiating leverage or untapped opportunities.

Price Trends – Where Values Are Climbing Fastest

Across Spain, property prices rose 6.9% in 2024 — but again, some regions are pulling ahead:

• Balearic Islands: Tops the chart with a +15.2% jump in price per square metre
• Cantabria: Close behind with +11.0% growth
• Navarra: The only region to see a slight decline (-0.9%)

💡 Buyer insight: High-growth regions like the Balearics and Cantabria offer strong investment potential, although prices in the Balearics are already at premium levels. For long-term value, areas with strong fundamentals but lower current prices may be smart bets.

Financing Snapshot – Mortgage Market on the Rise

Looking to finance your Spanish property purchase? Conditions are favourable.

• Mortgage approvals rose 9.4% in January 2025
• In 2024, mortgage activity increased by 21.4%
• The average loan amount now sits at €155,592, up 4.6% year-on-year

🏦 Takeaway for international buyers: Spanish lenders are active and confident in the market. With potential interest rate shifts ahead, it’s wise to get mortgage pre-approval early to lock in terms and strengthen your offer.

What’s Driving the Market?

Several key factors are fuelling Spain’s real estate momentum:

1. Tourism rebound: High visitor numbers are lifting demand in coastal and island regions
2. Remote work flexibility: More people can now live and work from scenic spots across Spain
3. Supply constraints: Limited new construction in hotspots like the Canaries and Balearics is keeping competition high
4. Economic health: Business activity rose 7.7% in 2024, adding to overall confidence

What’s Ahead – 2025 Forecast

CaixaBank Research projects a strong year ahead:

• 33% of Spanish cities (population 25,000+) may see prices rise by 10% or more
• Nationwide price growth is forecast between 5.9% and 7.2%
• Tourist destinations and job hubs are expected to lead the way

📈 Bottom line: Price appreciation is likely to continue, particularly in areas with limited inventory and high demand.

The International Buyer Landscape

Foreign interest in Spanish property remains strong — and increasingly diverse:

• Dutch buyers are now the third-largest group of international purchasers, after the British and Germans
• Property searches from the Netherlands surged 19% in early 2025

🌍 Why it matters: This diversification strengthens market resilience and suggests robust long-term international demand.

Smart Strategies for Buying in 2025

Here are some key tips for international buyers navigating Spain’s dynamic property market this year:

1. Act sooner rather than later: With prices on the rise, delaying your purchase could cost you.
2. Explore emerging regions: Andalucía and Valencia offer strong growth and better entry prices than ultra-competitive hotspots.
3. Get your financing lined up: Pre-approval puts you in a stronger position, especially if rates change.
4. Balance lifestyle and investment goals: Choose areas with both emotional appeal and strong fundamentals.
5. Work with local experts: Navigating a foreign property market is much easier with trusted guidance on the ground.

Final Thoughts

Spain’s real estate market in 2025 presents an exciting window of opportunity. With strong demand, regional hotspots, and a supportive financing environment, international buyers have much to gain. The key is understanding the trends, acting strategically, and partnering with professionals who know the local terrain.

At homes-abroad.com, we’re here to help you find the right property — and negotiate the best deal. Only the sun covers Spain better than we do.