Spanish Property Market Update

Spanish Property Market Update – March 2025: Continued Strong Growth

Well, it’s great news for investors as the property market has blasted into 2025 with remarkable strength, continuing the upward trend seen throughout 2024. Recent data from Spanish notaries, the Land Registry, and top international property portals underline this positive momentum.

Understanding these market trends is essential to effectively leverage new opportunities. At SGM Abogados, we keep an eye these insights closely to assist our clients and partners in making informed decisions in the dynamic Spanish property market.

Impressive Market Performance in January 2025

January 2025 began with exceptional market activity, recording 60,033 property transactions across Spain. This represents an impressive 8.8% increase compared to the same month in 2024, demonstrating sustained buyer confidence despite global economic uncertainties.

Key regional markets popular among international buyers performed notably well:

Canary Islands: Leading growth at 18.8% year-on-year.
Andalucía: Strong performance with 10.4% growth.
Balearic Islands: Continued robust demand, growing by 8.3%.
Valencia Region: Consistent strength, showing a 7.9% increase.
Murcia: Solid, steady growth at 5.6%.

The mortgage sector further supports this positive outlook, with new mortgage approvals increasing by 9.4% compared to January 2024, indicating continued ease of access to financing.

2024: Setting the Stage for Continued Growth

Last year’s strong property market laid the groundwork for the robust start of 2025. Data from Spanish notaries highlight the significant achievements of 2024:

Property transactions rose by 11.5%, totaling 716,183 sales.
Property prices increased by 6.9% compared to 2023.
Mortgage lending surged significantly by 21.4%.
New business formations grew by 7.7%, signaling broader economic health.

Notably, coastal and island regions, which remain highly attractive to international investors, demonstrated particularly strong performance:

Canary Islands and Andalucía: Impressive growth of 18.8% and 10.4%, respectively.
Balearic Islands: Maintained their premium market position with an 8.3% growth rate and Spain’s highest price appreciation at 15.2% per square meter.
Valencia Region: Continued robust performance with 7.9% growth.

These regions, traditionally favoured by international buyers, show clear indicators of sustained demand and future potential.

Forecast for 2025: Continued Positive Outlook

Looking forward, CaixaBank Research anticipates sustained property market strength throughout 2025, highlighting:

Over one-third of Spanish cities with populations exceeding 25,000 are projected to experience price increases exceeding 10%.
Nationally, property price growth forecasts range from 5.9% to 7.2%.

This positive outlook is particularly strong in major tourist and employment hubs, where demand significantly exceeds supply, offering continued attractive opportunities for international investors.

At SGM Abogados, we remain committed to providing expert legal advice and market insights to help our clients capitalise on these thriving market conditions.