The real estate market in Spain is experiencing a significant acceleration in housing demand and prices, leading to increased pressure on accessibility. Caixabank has revised its previous estimates upwards, predicting a surge in transactions and price growth over the coming years. According to data from the Ministry of Housing, Caixabank forecasts a total of 670,000 transactions in 2025 and 683,000 in 2026, with price growth expected to reach 9% in 2025 and moderate to 5.7% in 2026.
The housing sector in Spain is currently in an expansive phase, characterized by rising prices and increased sales operations. Recent months have seen a very favorable evolution in the market, with indications pointing towards continued growth at least until 2025 and 2026. The strong performance at the beginning of the year has prompted Caixabank Research to revise its forecasts upwards, reflecting the robust demand in the market.
Caixabank’s upward revision of transaction estimates and price growth projections signifies a positive outlook for the real estate market in Spain. The bank’s forecasted figures indicate a higher-than-expected growth rate, which will exert additional pressure on accessibility ratios. This highlights the urgent need to accelerate the construction of affordable housing in areas with high demand to address the increasing market pressures.
In response to the growing challenges in the housing market, the President of the Government, Pedro Sánchez, has proposed to triple public investment in housing during the upcoming four years. The aim is to reach a total investment of 7,000 million euros, while also considering the establishment of a public base for rental prices and real estate sales. This initiative seeks to address the housing affordability issue and promote sustainable growth in the real estate sector.
The latest data from the Association of Registrars indicates a significant increase in housing prices, with a year-on-year growth of 14.6% in the first quarter of 2025. Sales transactions have also surged by 13.7% compared to the previous year, reaching 673,000 operations in the last 12 months up to March. These trends underscore the robust performance of the Spanish real estate market, surpassing pre-pandemic peaks and setting the stage for continued growth in the coming years.
As Spain’s real estate market continues to evolve, stakeholders must collaborate to address the challenges posed by rising demand and prices. The proposed increase in public investment, coupled with initiatives to promote affordable housing, reflects a proactive approach towards ensuring sustainable growth and accessibility in the housing sector. With strategic planning and targeted interventions, Spain’s real estate market is positioned for a dynamic and resilient future.
