Real estate market predictions for Spain: What to expect in the coming months

As one of the most dynamic property markets in Europe, Spain's real estate sector continues to attract international investors, lifestyle buyers, and retirees seeking sun-soaked living. With changing economic indicators, evolving buyer behaviour, growing interest in second residences, and key factors affecting property prices such as: supply constraints, financing costs, and regulatory changes, understanding real estate market predictions is essential for making informed decisions. At Lucas Fox, we have our finger on the pulse of the market. Here’s our expert insight into what lies ahead for real estate market spain in 2025 and beyond.

1. Stability and growth in prime locations

Despite global uncertainty, property in Spain’s key regions remains resilient. Locations like Barcelona, Madrid, the Balearic Islands, and the Costa del Sol have seen steady demand, particularly in the luxury segment.

We predict continued growth in these areas, driven by:

International buyers seeking lifestyle destinations. Discover why Spain remains a top destination for international real estate investors in 2025;
Limited supply in premium areas;
High demand for turnkey properties and new builds.

Real estate market predictions for Barcelona and Madrid indicate steady appreciation, especially in centrally located neighbourhoods and well-connected suburbs. Buyers seeking long-term investments will continue to favour these stable, high-performing cities.

2. The rise of sustainable and energy-efficient homes

Sustainability is no longer just a trend; it’s becoming a market standard and one of the key factors affecting property prices. As climate awareness grows and EU regulations tighten, real estate trends increasingly favour energy-efficient and eco-friendly properties. Energy-efficient homes in Spain are in higher demand than ever before.

Our prediction is that:

Properties with energy certificates A or B will be more attractive;
New developments will focus on eco-friendly design;
Refurbishments will increasingly prioritise insulation, solar power, and smart tech.

Buyers, especially younger and international clients, are factoring sustainability into their buying decisions. Homes that offer long-term energy savings and environmental benefits will hold a competitive edge in the evolving real estate market spain.

3. International buyers will continue to drive demand

Real estate market predictions show that while local demand remains strong, foreign investors continue to play a critical role in shaping the Spanish property market, especially in the luxury segment. In 2024, foreign buyers accounted for over 15% of all home purchases in Spain, and this figure is expected to rise.

Top countries of origin include:

Germany;
France;
United Kingdom;
The Netherlands;
United States: Explore moving to Spain with our lifestyle guide for Americans here.

Mallorca, Ibiza, Costa Brava, and Marbella remain top choices for overseas clients. With lifestyle changes post-pandemic, many are seeking second homes or planning full relocations to Spain.

4. Remote work continues to influence buying patterns

The remote work revolution has had a lasting impact. Buyers no longer feel restricted to capital cities, and instead seek quality of life in coastal or rural locations with solid infrastructure.

We expect continued demand in:

Small towns near major cities (like Begues near Barcelona);
Coastal areas with international schools and fibre-optic connections;
Properties with home office space and private gardens.

This shift in real estate trends has boosted the popularity of places like Sitges, Jávea, and Girona, offering lifestyle-focused alternatives to city living without sacrificing connectivity.

5. Luxury market set to outperform

The luxury real estate sector in Spain has proven particularly robust. In 2025, we foresee further growth in high-end sales, particularly for properties above €1 million.

Key trends include:

Turnkey villas and penthouses with sea views;
Investment in branded residences and serviced apartments;
Continued interest in heritage buildings and restored country homes.

Clients are increasingly prioritising design, privacy, and lifestyle features, such as private pools, wellness spaces, and panoramic terraces. Lucas Fox properties in these segments often attract significant interest, with short time on the market. Explore our curated portfolio of New Developments designed for modern living.

7. Mortgage rates and inflation: What to Expect

The European Central Bank has started to ease interest rates, which is good news for prospective buyers and supports positive real estate market predictions. In Spain:

Mortgage interest rates have slightly decreased from 2023 highs;
Fixed-rate mortgages remain popular for risk-averse buyers;
Domestic inflation has stabilised.

Real estate trends indicate that lower financing costs will make property more accessible, especially for Spanish nationals and first-time buyers. However, prime properties are expected to continue appreciating due to ongoing supply-demand imbalances and other factors affecting property prices, such as location desirability and market regulations. Discover detailed insights on mortgage rates in Spain and what to expect in 2025.

8. Best areas to watch in 2025

For buyers looking for strong investment opportunities, these regions are ones to watch:

Valencia: growing tech scene and lifestyle appeal. Discover why Valencia has become a top destination for luxury real estate investment;
Seville: cultural capital with increasing foreign interest;
Costa Blanca: consistent demand and competitive pricing;
Málaga: a digital hub with lifestyle amenities.

Each offers different advantages, from yield potential to lifestyle quality, making them attractive to both investors and end users.

Final thoughts: A market that rewards informed buyers

The Spanish property market in 2025 is one of selective growth and strategic opportunity. Buyers who understand where the demand lies, and what types of properties are future-proof, stand to benefit the most.

At Lucas Fox, we guide clients through every step of their property journey, offering access to exclusive listings, expert advice, and multilingual support across Spain’s most desirable regions.

Whether you’re buying a second home, relocating, or investing in Spanish real estate, now is a prime time to explore the market with clarity and confidence.