Trends in the Spanish real estate market
In the second quarter of 2025, Spain saw a 2.5% increase in residential real estate transactions compared to the same period last year, according to European statistical agencies. Although the growth rate lags behind several other European Union countries, this indicates a stabilization of the sector following a period of high interest rates in 2023 and the first half of 2024.
Overall trend in Europe
This year, European families continue to show strong interest in purchasing property, supported by lower mortgage rates and easing inflationary pressure on household incomes. In spring 2025, home sales increased in 12 EU countries. The sharpest rise was recorded in Luxembourg, where the number of transactions jumped by 86.6%. Significant gains were also reported in Slovenia (34.8%) and Lithuania (24.4%). Portugal ranks fifth with annual growth of 18%. In these countries, buyer activity is fueled not only by accessible loans but also by government programs for young people, including tax breaks and guarantees.
Spain’s position against the European backdrop
Spain holds an average position among EU countries in terms of housing transaction growth. The country is seeing a gradual market recovery, especially in major cities and coastal regions, where steady demand persists from both locals and foreign buyers. Meanwhile, in Ireland, Hungary, and Finland, home sales continue to decline, reflecting the uneven situation across Europe.
Impact of macroeconomic factors
In 2023, the European real estate market experienced a noticeable downturn: total transaction volume fell by 17.2%, and housing prices in the eurozone dropped by 1.2%. However, recovery began as early as 2024, driven by lower interest rates and wage growth. As a result, property values in the eurozone rose by 2%, with total transactions up by 4.1%.
Outlook for 2025
Experts predict a continued strengthening of the real estate market in Europe in 2025. European institutions are continuing to develop measures to improve housing affordability for the population. In Spain and other EU countries, positive trends are expected to persist amid a stabilizing economy and ongoing support for buyers.
