Real estate market trends in Spain for 2025

What trends have shaped the real estate sector in 2024?

The 2024 real estate market in Spain has been characterized by its dynamism. Over the past months, the sector has experienced significant changes in property sale and rental prices, influencing demand behavior and financing conditions.

Housing prices: high and stable in major cities

One of the main trends to watch is housing prices in cities like Madrid and Barcelona, which remained high throughout 2023.

In the first nine months of 2023, there was a slight 18.3% decrease in property sales transactions in Madrid. However, prices stayed elevated, especially in the most sought-after areas.

In Madrid, the districts of Salamanca, Chamberí, and Chamartín recorded average prices exceeding €5,000/m², with Salamanca being the most expensive at an average of €7,623/m².

Similarly, in Barcelona, the average price in 2023 stood at €4,791/m², with Sarrià-Sant Gervasi leading as the most expensive district, averaging €5,827/m².

The strong demand in these cities, combined with limited supply, continues to drive prices upward, solidifying this as one of the real estate market trends in 2024.

Real estate market trends 2024: which areas have been in high demand?

Madrid and Barcelona have taken center stage due to their robust luxury real estate sectors in central areas.

In Madrid, Salamanca, Chamartín, and Chamberí accounted for 55% of the sales managed by Engel & Völkers in 2023. These districts are particularly attractive to investors seeking high-value properties and have also drawn the interest of international clients from Europe looking for real estate opportunities.

It’s worth noting that these areas not only offer exclusive homes but also a superior quality of life, such as better services, which is reflected in the prices. For instance, in Salamanca, some transactions reached prices of up to €19,000/m² for unique properties.

When discussing major real estate trends for 2024, it’s also important to highlight that suburban areas offer more affordable prices.

In municipalities like Pozuelo de Alarcón, Majadahonda, and Alcobendas, you can find larger, more modern homes with competitive prices. These are particularly appealing to families seeking better value for space and price rather than pure investment.

In Barcelona, municipalities such as Gavà and Sant Cugat del Vallès have experienced a similar trend. These areas have become popular among families seeking more space and tranquility without sacrificing proximity to the city.

What has happened with mortgages? Financing and interest rates

Discussing real estate market trends for 2024 requires revisiting mortgages and their impact on the housing sector.

In recent years, accessing real estate financing has been challenging in Spain due to rising interest rates, which have significantly increased mortgage costs.

In 2023, interest rates were raised six times—aimed at curbing inflation—reaching 4.5%, the highest level since 2001. This resulted in fewer new loans being issued and some buyers opting for cash payments.

According to data from Engel & Völkers’ report, 47% of buyers in Madrid used mortgages in 2023, reflecting a downward trend compared to previous years.

However, a decrease in interest rates was anticipated throughout 2024 due to the disinflation process, as predicted by the Euribor. This forecast was confirmed in September 2024, potentially translating into easier access to financing and a reactivation of demand.

Rental market: high prices and strong demand

To conclude the real estate trends for 2024 in Spain, the rental market must be addressed.

In cities like Madrid and Barcelona, the rental market continues to face significant pressure due to limited supply. In 2023, the average rental price in Madrid reached €22/m², with districts like Salamanca exceeding €50/m² in certain transactions.

Similarly, in Barcelona, the average price stood at €22/m², with districts like Eixample gaining the most popularity.

Additionally, international demand, particularly from digital nomads and expatriates, has intensified this pressure. Lower turnover in rentals and uncertainties brought by the new Housing Law have further reduced the available supply. This has made the rental market with rising prices one of the key real estate trends in 2024.

As we can see, the Spanish real estate market is in a phase of consolidation, where price stability and growing demand for luxury housing are key factors.

Despite challenges in financing and rentals, the sector maintains strong fundamentals, ensuring its appeal to both local and international buyers.