The housing market is expected to remain buoyant throughout 2025. According to Solvia’s latest forecasts, property sales will continue to grow this year, although at a slower pace than house prices. The most significant increases are anticipated in the rental market.
In its report, the real estate services company states: “The Spanish property sector showed strong momentum in 2024, particularly in the second half of the year, driven mainly by lower interest rates, stable employment and growing interest from foreign buyers.” At the same time, while the supply of new-build homes is beginning to recover gradually, it remains insufficient to meet robust demand, pushing prices higher and making it increasingly difficult for part of the population to access housing. Solvia expects this trend to persist in the coming months.
Specifically, Solvia forecasts a rebound in home sales of between 3% and 4%, reinforcing what it describes as “the expectation of a still robust and expanding market.” According to the company, several factors will support continued growth, including “pent-up demand from previous years driven by falling interest rates, increased purchases by foreign buyers and a shift towards smaller homes, which is resulting in more transactions.”
By the end of the year, access to credit is expected to ease, attracting more buyers and boosting mortgage activity.
“By 2024, the number of sales will be comparable to the levels seen in 2007–2008,” the report notes, “but with an additional three million people in the population – and all of them need somewhere to live.”
More price increases
Solvia expects housing prices to continue rising in 2025, potentially outpacing the growth in sales. According to its forecasts, average property prices across Spain could increase by between 4% and 5%, driven by “growing demand for housing and a clear shortage of supply.”
This supply-demand imbalance is putting particular pressure on prices in the most desirable areas, such as major cities and popular tourist destinations.
By the end of 2024, Madrid had become the most expensive province, reaching €3,780 per square metre, overtaking the Balearic Islands, which slipped to second place at €3,771/m². At the other end of the spectrum, Badajoz, Jaén and Ciudad Real remain the most affordable provinces in Spain, with average prices below €800 per square metre.
Solvia places particular focus on Madrid and Barcelona. In the capital, average property prices reached €4,030 per square metre in 2024, reflecting a year-on-year increase of 7.1%. In Barcelona, the average stood at €3,937 per square metre, with a 5.7% rise over the year.
The rental market is also expected to continue its upward trajectory, with Solvia forecasting the strongest price growth in this segment. Rent is predicted to rise by more than 10%.
By the end of 2024, Barcelona had the highest average rental prices in Spain, at €19.5 per square metre per month, followed by Madrid (€18.2/m²) and the Balearic Islands (€17.3/m²). Other provinces such as Guipúzcoa, Málaga and Las Palmas also exceeded €14/m². In contrast, the most affordable rental markets were found in Zamora, Lugo, Teruel, Badajoz, Ciudad Real and Jaén, where rent ranged between €5.5/m² and €6.8/m².
By city, Solvia focuses on Madrid and Barcelona. In the capital, it estimates the cost of housing at €4,030/m², with a year-on-year increase of 7.1% in 2024, while in the Catalan capital, the average stood at €3,937/m², with a year-on-year increase of 5.7%.
More new-build permits
Solvia also forecasts an increase in construction permits for new homes. In 2024, a total of 127,721 permits were issued – an 18.3% year-on-year rise and the highest figure since 2008, according to the Ministry of Housing and Urban Agenda (MIVAU).
Looking ahead to 2025, the real estate firm projects further growth in new housing permits of between 5% and 10%, which it says “would reinforce the positive trend currently seen in the construction sector.” However, the company also highlights several ongoing challenges, including a lack of legal certainty, limited availability of land for development, a shortage of qualified professionals across various trades and persistently high construction material costs – all of which continue to affect production expenses and, ultimately, the profitability and viability of new housing projects.
Urgent property sales in Spain
Buying property in Spain is a dream for many, but the process can sometimes be lengthy and costly. With the year drawing to a close, there’s no better time to secure your ideal home and potentially benefit from great deals before 2025 ends. Urgent property sales offer a fast, cost-effective way to find exceptional opportunities within days or weeks.
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