Spanish market

Spain Tourism Growth

Comparison of Spain’s tourism statistics for the years 2014, 2015, 2018, 2023, and 2024. The data highlights trends in tourist arrivals, global rank, cumulative percentage increases, and tourism-related revenues.

Tourism Growth:

• Tourism in Spain experienced significant growth, with international arrivals reaching 83.7 million in 2023, marking a 10% increase over 2022 and surpassing pre-pandemic levels by 2%.
• Revenue from the tourism sector grew to €159 billion, driven by luxury travelers and longer stays.
• Key regions like Catalonia, Andalusia, and the Balearic Islands accounted for over 60% of total tourism activity.

Real Estate Market Potential:

• Spain’s total real estate market value reached €712 billion in 2023, growing by 8.4% year-over-year.
• Transaction volumes for residential properties increased by 13% in key urban centers, driven by foreign investors and domestic buyers seeking prime locations.
• Demand for short-term rental units rose by 22%, reflecting the ongoing recovery and expansion of the hospitality sector.

Spain: Residential Transaction Volume

This chart illustrates the residential real estate transaction volume in Spain from 2017 to 2028E. The data highlights both realized and anticipated market growth, providing insights into trends shaping investment opportunities.
Key Insights:
Cumulative Market Growth (2017–2028E): +93.7% – Strong long-term expansion in Spain’s residential real estate market.
Projected Growth (2025E–2028E): +12.9% – Sustained market momentum in the coming years.

Resilience of Spain’s Real Estate Market

Spain has shown not only dramatic growth, but remarkable resilience during and after the pandemic. Tourism and housing prices rebounded faster than the EU overall by significant margins, underscoring Spain’s fundamental appeal to travelers and residents alike

These trends are evident in GDP growth: Spain outpaced average EU economic growth in 2024 and is projected to continue growing at a faster pace in the coming years.

Key Signals in Spain’s Real Estate Market

A primary driver of Spanish residential price stability and growth is the chronic housing shortage. While Spain’s population grew by nearly 800,000 between 2021 and 2023, housing starts have lagged far behind, averaging just 75,000 annually over the past decade compared to 400,000 during the 2000s boom. In 2023, only 31,000 units were started, meeting less than 50% of annual demand, which has driven property prices up 25% since 2017. High construction costs, land scarcity, and rising interest rates further exacerbate this imbalance.

The hospitality sector adds pressure, with Spain attracting over 93 million international tourists in 2024, a 10.1% increase from the previous year. Foreign buyers accounted for 14% of home purchases, intensifying competition in urban and coastal areas.

Opportunity: This supply-demand gap presents a unique opportunity. Repositioning underutilized properties and developing projects that integrate residential, and hospitality solutions can unlock significant value in one of Europe’s most attractive real estate markets.