Spain’s real estate market continues to defy expectations.
Forecasts are pointing to a record year for property transactions and steady price growth across much of the country.
According to Donpiso, residential sales could reach 800,000 by the end of 2025. This is around 25% more than the 641,919 homes sold in 2024. The company attributes this surge to a mix of limited supply, strong demand, and stable borrowing conditions.
Prices are also on the up. Donpiso expects an average national increase of around 8%, bringing the cost of housing close to €2,000 per square metre. In major urban centres such as Madrid and Barcelona, that figure could climb as high as €4,000 per square metre.
The strongest demand is anticipated in Madrid, Catalonia, the Valencian Community, and Andalusia, which together are expected to account for more than half of all sales.
Even so, the company warns that Spain’s “shortage of affordable housing.” They say the lack of long-term housing policies remain major obstacles to creating a sustainable market. Deputy managing director Emiliano Bermúdez stressed the need for “a viable supply, affordable prices, and legal certainty for homeowners.” This is to ease what he describes as a housing crisis on a scale not seen since 2007.
Spain’s real estate market: New-build shortage
Real estate and mortgage management firm Tecnotramit offers a slightly more conservative outlook. They predict around 750,000 property sales in 2025 and price increases of between 4% and 6%.
CEO Vicenç Hernández warns that the ongoing shortage of new-build homes is the “main brake” on the market. He describes the situation as a “bubble” that, if it were to burst, would have “more serious social than macroeconomic consequences,” particularly for middle- and lower-income households.
With population growth and the rise of single-person households intensifying demand, Hernández believes both sale and rental prices will continue to climb. His proposed solution: a national housing supply and renovation plan to tackle the growing imbalance between what people need and what’s being built.
