Limited availability and slow construction will drive Spain’s housing prices up, complicating access for buyers and renters in 2025.
House prices in Spain are anticipated to rise between 4% and 5% in 2025, according to the latest report from Solvia. This forecast is underscored by a persistent issue of limited housing availability and sluggish construction rates, which are expected to hinder the market’s ability to absorb the increasing demand. Consequently, this imbalance will continue to exert upward pressure on prices, complicating access to housing for both buyers and renters.
The Spain real estate market is projected to maintain its dynamism throughout 2025; however, the ongoing shortage of supply will remain a critical factor influencing market developments in both sales and rentals, as highlighted by Solvia. The constrained availability of residential properties, coupled with the slow pace of new construction, will further complicate efforts to meet the growing demand, thereby intensifying the pressure on Spain housing prices.
These insights are derived from the III Solvia Market View 2024, a quarterly analysis of trends within the residential sector conducted by the esteemed real estate firm. The report forecasts an increase in house prices of between 5% and 7% by the end of the current year, a slight upward revision from previous estimates, with a subsequent moderation expected in 2025, settling between 4% and 5%.
Between July and September, the average value of residential properties reached €2,114 per square meter, reflecting a 2.8% increase compared to the previous quarter and a notable 7.1% rise relative to the same period in 2023. In the new construction segment, a year-on-year growth of 4.9% was observed, resulting in an average price of €2,254 per square meter, although the quarterly advancement was more modest at 1.1%. Conversely, the cost of used properties was recorded at €2,080 per square meter, with a quarterly increase of 3.3% and a year-on-year rise of 7.5%.
Regionally, the Balearic Islands, Guipúzcoa, and Madrid have retained their status as the most expensive provinces, with prices exceeding €3,000 per square meter. Noteworthy quarterly variations were observed in Cuenca, which experienced a remarkable increase of 26.3%, while Asturias, Cáceres, and Albacete recorded gains ranging from 9% to 12.5%. In contrast, provinces such as Soria, Las Palmas, Navarra, and Córdoba faced declines between 6.8% and 19.9%. On a year-on-year basis, 43 territories reported price increases, with Cuenca leading the charge at 22.8%. Huesca and Segovia also exhibited significant growth, with increases of 18% and 16.9%, respectively.
Focusing on Spain’s two principal cities, Madrid’s average cost per square meter reached €3,895, reflecting a 1.6% growth from the previous quarter and a year-on-year increase of 4%. The most pronounced quarterly increases in Madrid were noted in the districts of Chamberí, Moratalaz, and Usera, where prices surged by over 3%. Meanwhile, Barcelona experienced a quarterly uptick of 2% in house prices during the third quarter, reaching €3,849 per square meter, with a year-on-year increase of 5%, surpassing the 4.2% recorded in the preceding quarter. The districts showcasing the highest increases included Sant Andreu, Sant Martí, and L’Eixample, with quarterly growths oscillating between 1.6% and 3.3%.
In the third quarter of 2024, a total of 166,609 sales transactions were executed, signifying a 13.9% increase compared to the prior quarter and an impressive 18.9% growth relative to the same period in 2023. Cumulatively, the total number of sales transactions for the year reached 464,358, reflecting a 2.5% increase from the 453,167 transactions recorded in the first nine months of 2023. This data underscores the strengthening demand within the Spain housing market, a trend that is likely to persist in the foreseeable future.
