Is Now a Good Time to Invest in Spanish Real Estate?

Spain’s real estate market is booming in 2025 and international investors are taking notice. Backed by economic growth, competitive prices, and strong sector performance, Spain is increasingly being seen as Europe’s most attractive property market this year.

A Market on Solid Ground

Spain’s economy grew by 3.2% in 2024 and continues strong into 2025. Real estate investment volumes reached €14 billion last year (up 20%) with 2025 expected to bring a further 10%–15% increase.

Lower interest rates and more accessible financing are attracting both institutional and private capital, especially from countries with less economic stability.

Where the Smart Money Is Going?

Residential:
Still the backbone of the market. Demand outpaces supply, and prices are projected to rise up to 9% by 2026. Cities like Málaga, Valencia, and the Balearics are hot zones.

Hospitality:
Tourism is booming again. Investors are eyeing luxury hotels and branded residences, with strong performance indicators in popular coastal and urban areas.

Logistics & Retail:
Retail is recovering. Investors are re-engaging with physical stores, while logistics remains strong due to limited new supply and growing demand.

Who Should Be Watching?

1- Investors from high-inflation or high-risk regions.

2- U.S. buyers leveraging dollar strength.

3- European investors capitalizing on low interest rates and easy cross-border deals.

4- Investors looking for secure, professionally managed real estate projects.

If you’ve been considering Spain as part of your real estate strategy, 2025 is looking like your moment. Just be sure to understand the local dynamics and work with the right partners on the ground.