The Spanish residential market enters 2025 with a renewed surge in prices. According to donpiso, the average home value is set to rise 7% over the year, surpassing €1,900 per square metre. Driving this trend are moderate interest rates, strong demand and a limited supply of new homes.
In major cities, prices are expected to be even higher, with averages exceeding €3,900 per square metre, the forecasts add.
More operations than in 2024
The company forecasts that sales could reach 800,000 transactions in 2025, marking a near 25% rise compared with the 641,919 deals recorded in 2024.
Madrid, Catalonia, the Valencian Community and Andalusia are expected to account for more than half of these sales, while northern regions could also see strong performance thanks to a boost in residential tourism, investor interest and the return of domestic buyers.
Emiliano Bermúdez, deputy general manager of donpiso, highlights that a solid labour market and improved financing conditions will continue to support both prices and activity. “We don’t foresee a bubble, but rather a year of stable growth, with particular emphasis on the best-connected urban areas,” he notes.
The executive adds that rising housing costs are driving interest in mid-sized cities and metropolitan areas, especially in towns within the first and second rings of large cities.
Who will buy homes in 2025?
Regarding buyer profiles, the prevailing trend remains the acquisition of homes to improve primary residences, particularly among families and young people with access to mortgages. At the same time, investment in housing as a hedge against inflation is gradually picking up.
The mortgage market is also showing signs of stability, with the Euribor rate hovering around 2% and banks offering increasingly competitive terms.
Shortage of affordable housing
Despite the positive outlook, donpiso cautions that the shortage of affordable housing and the lack of structural reforms in urban planning and construction remain significant hurdles to balanced market growth.
“The challenge lies in meeting demand with affordable prices, available land and legal security for homeowners,” Bermúdez concludes.