The Spain Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Business Model (Sales and Rental), Mode of Sale (Primary and Secondary) and Key Cities (Madrid, Barcelona, Catalonia, Valencia Community, Andalusia – Malaga & Costa Del Sol and Rest of Spain). The Market Forecasts are Provided in Terms of Value (USD).

The Spain residential real estate market size reached approximately USD 165.79 Billion in 2024. The market is projected to grow at a CAGR of 5.80% between 2025 and 2034, reaching a value of around USD 291.35 Billion by 2034.

The Spain residential real estate market size was USD 145.18 Billion in 2022 and is likely to reach USD 264.67 Billion by 2031, expanding at a CAGR of 6.9% during 2023–2031. The growth of the market is attributed to the increase in construction as well as population.

Spain’s real estate market is posting a positive trend, especially in terms of demand. The revival in house sales was high in 2021. For instance, 468,000 transactions were completed by October 2021, a growth of 35.9% compared to 2020 and up by 8.3% on 2019. The activity in the residential sector was highest since 2008. A large part of this revival in demand has come from a reduction in pent-up demand and the forced savings accumulated during the months of lockdown and severely restricted travel, combined with highly favorable financing conditions, which make it more attractive to buy and invest in real estate assets. The residential sector is therefore on track to close 2021 with 545,000 sales in the year as a whole.

Before the pandemic began, the residential real estate market in Spain was growing at a healthy pace, which was then dented by Covid-19 as the construction of housing units came down. However, in 2021, the market was back on track with increase in construction.



As per the latest data from the Appraisal Society, it indicates that the price of new housing has remained stable, in a context of increased sales and improvement in economic indicators. The average price of new homes has grown 0.4% in Spain over the last 12 months to Euro 2,482 (approximately USD 2812) per square meter. This slight increase has been generalized and has been registered in 16 of the 17 autonomous communities.



The economic consequences of the Covid crisis made a dent in the real estate market, and has reflected in the 16.7% collapse of sales in Spain in 2020 to 419,898 transactions. As a result, experimental ways of life are introduced into the real estate market to compensate for the lack of social interaction between people.

Spain Residential Real Estate Market Trends, Drivers, Restraints, and Opportunities

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The average mortgage interest rate in Spain followed a downward trend for almost a decade before increasing dramatically in 2022. In 2023, new housing loans had an average interest rate of 3.74 percent — about three times the interest rate in 2020. Mortgages with a five to 10-year term were the only product which saw rates decline between 2022 and 2023. Why did mortgage rates spike? Macroeconomic factors, such as inflation, economic growth, and fiscal policy, play a major role in determining the cost of a loan. Inflation in Europe started rising in late 2021, largely due to surging energy costs. In Spain, the annual change of the consumer price index peaked at almost 11 percent in July 2023. The European Central Bank has responded by introducing a series of hikes on the key interest rates (main refinancing operations, marginal lending facility, and deposit facility), which have affected lending rates across the European Union. How has the housing market reacted to the interest rate hike? The housing market follows a certain seasonality, with more home sales in the second and fourth quarters of the year. This was also the case in 2022, but the last quarter of the year saw an annual decline. Though compared to previous years, the number of transactions was one of the highest, the annual decrease shows a potential downturn.

The Spanish residential real estate industry is projected to experience robust growth over the coming years, driven by favorable economic conditions, increasing population density in urban areas, and a growing demand for modern and sustainable housing. The market size, valued at USD 166.01 million in 2025, is expected to expand at a CAGR of 6.90% during the forecast period of 2025-2033, reaching USD 263.57 million by 2033. The industry's key drivers include government incentives for homeownership, rising disposable incomes, and a growing millennial population seeking affordable and convenient housing options. Key trends shaping the industry include the increasing popularity of energy-efficient and eco-friendly buildings, the emergence of proptech solutions, and the growing demand for rental properties. The industry is also witnessing a shift towards mixed-use developments, integrating residential spaces with retail, commercial, and recreational facilities to cater to evolving consumer preferences. However, the industry faces restraints, such as rising construction costs, supply chain disruptions, and regulatory complexities. The market is segmented based on property type, with apartments and condominiums dominating the market, followed by villas and landed houses. Major cities, including Madrid, Catalonia, Valencia, Barcelona, and Malaga, serve as key growth hubs, attracting both domestic and international buyers. Recent developments include: October 2022: A build-to-rent (BTR) cooperation between Layetana Living and Aviva Investors was established in Spain. According to the statement, the collaboration between Aviva and the Spanish developer Layetana will construct a more than EUR 500 million (USD 531.20 Million) residential portfolio, already securing its first development project. Based on the recommendation of international real estate consultancy Knight Frank, the partnership purchased a 71-unit residential building in Barcelona's Sants neighborhood. Construction is scheduled to begin at the end of 2023., September 2022: Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, expanded its services in the Valencian Community. It is now running with Maryana Kim directing a new office in Denia, in the northern section of the Costa Blanca. It is the fourth facility that Berkshire Hathaway HomeServices Spain opened in 2022.. Key drivers for this market are: 4., Increasing Number of High Net-Worth Individuals (HNWIs). Potential restraints include: 4., Rising Interest Rates. Notable trends are: Rise in International Property Buyers in Spain.

Graph and download economic data for Real Residential Property Prices for Spain (QESR628BIS) from Q1 1971 to Q1 2025 about Spain, residential, HPI, housing, real, price index, indexes, and price.

Approximately 142,014 residential real estate transactions were registered in Spain during the third quarter of 2023. Despite experiencing notable fluctuations, the volume of residential real estate transactions in Spain showed an upward trend during the period under observation.

Housing Index in Spain increased to 2033 EUR/SQ. METRE in the first quarter of 2025 from 1972.10 EUR/SQ. METRE in the fourth quarter of 2024. This dataset provides the latest reported value for - Spain House Prices - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The Spain Residential Real Estate market is experiencing robust growth, with a market size of €166.01 million in 2025 and a projected Compound Annual Growth Rate (CAGR) of 6.90% from 2025 to 2033. This expansion is driven by several key factors. Increasing urbanization and population growth within Spain are fueling demand for housing, particularly in major cities and coastal regions. Furthermore, favorable government policies aimed at stimulating the housing market, including tax incentives and mortgage accessibility schemes, are contributing to this positive trend. The rise of remote work also plays a significant role, attracting both domestic and international buyers seeking properties in more desirable locations. However, the market is not without its challenges. Rising construction costs and a limited supply of land in prime areas are potential constraints on growth. Competition amongst developers, like Acciona Inmobiliaria, MetroVacesa, Spain Homes, Q21 Real Estate, KRONOS, Via Celere, AELCA, Neinor Homes, Pryconsa, and AEDAS homes, is intensifying, leading to innovative approaches in design, sustainability, and affordability. Looking ahead, the Spanish residential real estate sector is poised for continued growth, albeit at a potentially moderated pace compared to recent years. The increasing adoption of sustainable building practices and smart home technologies is shaping the market. The ongoing economic recovery in Spain, combined with continued investment in infrastructure, is expected to further bolster demand. Nevertheless, careful monitoring of inflation, interest rates, and potential regulatory changes remains crucial for accurately forecasting future market performance. The diversity of players, ranging from large national developers to smaller, regional firms, indicates a dynamic and competitive market landscape. The consistent demand, combined with thoughtful development strategies, is expected to ensure the continued flourishing of the Spanish residential real estate industry throughout the forecast period. Key drivers for this market are: 4., Increasing Number of High Net-Worth Individuals (HNWIs). Potential restraints include: 4., Rising Interest Rates. Notable trends are: Rise in International Property Buyers in Spain.

Spain residential real estate market is valued at EUR 1.6 trillion, driven by urbanization, foreign investment, and demand in Madrid and Barcelona, with sustained price growth.

Technological advancements in the Spain Residential Real Estate industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

The number of residential real estate transactions in Spain declined to ******* in 2023 after increasing for two years in a row. Despite the decrease, this figure was higher than other years since 2007 when more than ******* home sales were completed.

The Spain Commercial Real Estate industry is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is fueled by several key drivers. Strong tourism, particularly in cities like Madrid, Barcelona, and Valencia, is boosting demand for hospitality and retail spaces. Furthermore, a growing population and increasing urbanization are driving the need for more residential (multi-family) and office properties. Investment in logistics and industrial real estate is also significant, reflecting Spain's growing role in European supply chains. While challenges exist, including potential interest rate hikes impacting financing costs and fluctuations in the global economy, these are largely offset by the strong underlying fundamentals of the Spanish market. The sector's segmentation reflects diverse investment opportunities. Major cities like Madrid and Barcelona account for a substantial share of the market, but other cities like Valencia and Malaga are also demonstrating significant growth potential, reflecting a decentralization of economic activity and investment. Key players, including Merlin Properties, Via Celere, and Kronos Investment Group, are driving this growth through both development and acquisition. The study period (2019-2033) provides a comprehensive overview of the market's historical performance and future trajectory, allowing for informed investment decisions. The diverse segments within the Spanish commercial real estate market offer compelling investment prospects. The office sector remains a significant contributor, fueled by both established businesses and burgeoning startups. Retail real estate continues to evolve, with a shift towards experiential retail and a growing online presence requiring strategic adaptations. The logistics and industrial segments are experiencing particularly rapid growth due to increased e-commerce activity and the strategic location of Spain within the European Union. The hospitality sector, while sensitive to global economic conditions, benefits from Spain's enduring popularity as a tourist destination. The multi-family sector is also witnessing expansion to meet the housing needs of a growing population. Understanding the interplay between these segments, coupled with an analysis of regional variations and the key players involved, is crucial for investors seeking to navigate this dynamic market successfully. The forecast period (2025-2033) provides a valuable outlook on the future trajectory of this promising market. Considering the historical data (2019-2024) will help in creating a balanced understanding of the market fluctuations and potential future trends. Recent developments include: December 2022: GAena, the Spanish public company in charge of general aviation airports in Spain, announced today a call for tenders for 86 duty-free shops, all of which are indivisible, at 27 airports in its network. The bidding documents include six lots in total, which is twice the number of lots available in the previous tender. According to a press release issued by Aena, the tender will double the number of lots to increase and favor competition among global operators. The total commercial space available will exceed 66.000 square meters, allowing for the development of economies of scale., June 2022: Allianz Real Estate, acting on behalf of several Allianz group companies, paid EUR 185 million (USD 196.95 million) for a portfolio of nine prime residential buildings in Madrid's Chamartn district. The transaction consolidates Allianz Real Estate's ownership of the larger block and expands its exposure to the highly attractive Spanish PRS sector, particularly in Madrid. It is located next to Castellana 200, a mixed-use office and retail asset already owned by Allianz Real Estate. The nine assets include 245 residential units as well as additional retail space.. Notable trends are: Increasing demand for logistics property driving the market.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

House prices in Spain are forecast to fall in 2024, after increasing by *** percent in 2023. Nevertheless, prices are expected to pick up in 2025, with an increase of ***********. The Portuguese housing market, on the other hand, grew by *** percent in 2023, but was forecast to contract in the next two years.

The Spain Commercial Real Estate Market Report is Segmented by Property Type (Offices, Retail and More), by Business Model (Sales and Rental), by End-User (Individuals / Households, Corporates & SMEs and Others) and by Geography (Key City) (Madrid, Barcelona, Valencia and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The Europe Luxury Residential Real Estate Market Report is Segmented by Business Model (Sales, Rental), by Property Type (Apartments & Condominiums, Villas & Landed Houses), by Mode of Sale (Primary (New-Build), Secondary (Existing-Home Resale)), and by Country (United Kingdom, Germany, France, Italy, Spain, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

The Spain condominiums and apartments market, valued at approximately €XX million in 2025, is projected to experience robust growth with a Compound Annual Growth Rate (CAGR) exceeding 5.40% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, Spain's burgeoning tourism sector consistently demands increased accommodation options, driving investment in both new construction and renovations. Secondly, a growing urban population, particularly in major cities like Madrid and Barcelona, creates sustained demand for modern, comfortable housing. Thirdly, favorable government policies and incentives aimed at stimulating the real estate sector contribute to market dynamism. While challenges exist, such as fluctuating interest rates and potential construction material cost increases, the long-term outlook remains positive due to the strong underlying fundamentals of population growth and tourism. The market segmentation reveals significant regional variations. Barcelona and Madrid, as the largest cities, naturally dominate the market share, with Valencia, Malaga, and Catalonia also contributing substantially. Leading construction companies like Dragados Sociedad Anonima, Ferrovial Construccion SA, and Constructora San Jose SA play crucial roles in shaping the market landscape. Future growth will likely be influenced by evolving consumer preferences, including an increasing demand for sustainable and energy-efficient buildings, smart home technologies, and flexible living spaces. The market's continued success hinges on addressing challenges such as maintaining affordability in the face of rising construction costs and ensuring sustainable development practices. Recent developments include: Oct 2022: A build-to-rent (BTR) cooperation between Layetana Living and Aviva Investors was established in Spain. According to the statement, the collaboration between Aviva and the Spanish developer Layetana will construct a more than EUR 500 million (USD 531.20 million) residential portfolio, already securing its first development project. Based on the recommendation of international real estate consultancy Knight Frank, the partnership purchased a 71-unit residential building in Barcelona's Sants neighborhood. Construction is scheduled to begin at the end of 2023., Sept 2022: Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, expanded its services in the Valencian Community. It is now running with Maryana Kim directing a new office in Denia, in the northern section of the Costa Blanca. It was the fourth facility that Berkshire Hathaway HomeServices Spain opened in 2022.. Notable trends are: Rise in International Buyers in Spain.

The Europe Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Mode of Sale (Primary and Secondary), Business Model (Sales and Rental) and Country (Germany, United Kingdom, France, Spain, Italy, Netherlands, Sweden, Denmark, Norway and Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

The real estate transaction value in the 'Residential Real Estate Transactions' segment of the real estate market in Spain was modeled to be ************* U.S. dollars in 2024. Between 2017 and 2024, the real estate transaction value rose by ************* U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The real estate transaction value will steadily rise by ************* U.S. dollars over the period from 2024 to 2029, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Residential Real Estate Transactions.