The strength of demand for housing and the scarcity of product (especially affordable) will continue to set the course for the Spanish residential market, which in the last year has experienced a period of consolidation and expansion in Spain. This scenario of steady demand will translate into a price increase of between 3.5% and 7% by 2025, according to Gesvalt forecasts. Here are the trends in the real estate sector in 2025.
What are the trends in the real estate sector?
The trends that will mark the coming year in the real estate sector:
Office market. In 2025 we expect this market to continue its recovery. Stabilising interest rates and improving economic conditions could spur new investment and development, especially in premium or well-connected peripheral areas.
Retail sector. Renewed interest in the retail sector will continue, both in city shopping centres and shopping malls. In 2024, we have witnessed multiple transactions, which we expect to continue.
Industrial and logistics sector. Peripheral and well-connected areas will continue to see an increase in the development of logistics projects, with a growing focus on sustainability and energy efficiency. E-commerce and the need for efficient distribution centres will continue to drive investment in new infrastructure. The logistics sector mThe growth momentum will continue in 2025, albeit at a more moderate pace. Stabilising demand and geopolitical tensions could weigh on growth, but investment in sustainability and technology will remain a priority.
Living. In 2025, real estate in the living market will be driven by sustainability, digitalisation and flexible spaces. Properties will seek to meet green standards, incorporating green certifications, sustainable materials and renewable energy solutions to appeal to a more conscious consumer. Technology will play a key role, with digital tools for design, buying and renting, such as virtual tours, digital contracts and AI-based platforms to personalise the offer. In addition, spaces that combine functionality and adaptability will be in demand, such as mixed-use work/live units. The rise of the coliving and residences designed for communities will be key, responding to more collaborative and urban lifestyles.
Tourism and coastal areas. Spain's tourism boom, which reached record numbers in 2024, will be key to real estate investment in coastal areas. Regions such as the Costa Blanca are leading growth expectations, backed by an international environment that positions Spain as a preferred destination over other parts of the Mediterranean affected by geopolitical tensions.
Specialised residences. They will be a major focus of investment. The ageing population and the shortage of student places will remain among investor preferences. In 2025, the number of places in student residences is expected to increase, with demand still outstripping the available supply. On the other hand, retirement homes will be a key pillar of the sector in the medium to long term.
Sustainability. Sustainability is becoming an unavoidable criterion in real estate development. Stricter regulations and the demand for European funds are driving the refurbishment of buildings with a focus on energy efficiency and emissions reduction.
1. Lower interest rates: investment and mortgages
How will the fall in mortgage interest rates affect the economy?
The Euribor, the most widely used index in mortgages, continues to fall. With more attractive mortgage conditions, a new cycle is opening up in the residential market by making it easier to obtain mortgages. access to housing.
Those looking to buy a home in 2025 will find a more favourable context than in previous months, thanks to the de-escalation of interest rates.
2. Forecast increase in house prices
House price forecast 2025. The upward trend in the house prices will continue to set the pace in the year ahead, with a projected increase of between 3.51GDP3T and 71GDP3T, comfortably outpacing inflation.
With regard to the rental market, We foresee a moderate rise, ranging between 3% and 6.5%. However, the most stressed areas could break this forecast, leaving little chance of seeing a significant deceleration in these environments.
Looking ahead to next year, it will be key to implement strong and effective measures to support landlords, stimulate the growth of rental supply and encourage the construction of social housing that meets various social needs.
3. Lack of supply
The existing distortion between the lack of supply and demand for real estate will continue to drive house prices in 2025.
In the new year it will be essential to continue to promote solid and stable measures to help homeowners, to increase rental supply, and to increase the construction of housing with different types of public protection.
4. Tourism growth
Tourism growth in 2024 has exceeded expectations and marked the best start to the year in the sector's history. The tourism sector faces a positive start in 2025.
However, this is also having some negative effects such as gentrification and overcrowding. In addition, the sector's dependence on human capital remains one of the main challenges.
Sustainability and digitalisation are emerging as key levers to boost tourism in 2025.
5. Focus on sustainability
Sustainability in the tourism sector responds to the growing demands of more committed travellers. The drive for sustainability also protects and energises tourism environments, promoting balanced and responsible development.
Together with digitalisation, they strengthen the competitiveness of the sector while aligning its objectives with the demands of sustainable development and global technological trends.
6. Advances in technology
Digitalisation improves the traveller experience and optimises operational management, from personalisation of services to energy efficiency in tourism infrastructures.
Conclusions on real estate trends
The real estate sector Spain closes 2024 with solid figures that confirm its dynamism and suggest a scenario of moderate growth for 2025:
House prices. 2024 ends with an annual change of 10.6% and quarter-on-quarter growth of 2.6%. By 2025, values are expected to continue to grow between 3.5% and 7%.
Rental prices. The forecast increase by 2025 is between 5% and 7%, in line with persistent stresses in major urban and tourist areas.
Volume of operations. The cumulative 2024 will close with an annual change of between 7.5% and 8%, reflecting an active market. By 2025, cumulative growth is projected to be more moderate, at around 3.5% and 5%.