by HabitaRetail 
The real estate market in Spain continues to show positive signs of growth for the coming years, driven by the economic recovery and falling interest rates in the Eurozone. According to the latest BBVA Real Estate Observatory report (August 2024), residential demand is expected to continue to increase, which, together with relatively limited housing production, will drive prices upwards.
Economic Growth and Residential Demand
The Spanish economy has shown a stronger than expected recovery, with GDP growth forecast at 2.5% in 2024 and 2.1% in 2025. This growth, led by consumption, together with falling interest rates, is encouraging higher demand for housing. In the first five months of 2024, home sales grew by 6.1%, a trend that is expected to continue, reaching nearly 700,000 units sold in 2025.
Visas and New Home Construction
Despite an increase in new building approvals, with a 14.8% annual increase in the first months of 2024, the supply of new housing remains limited. Construction activity is expected to start reacting more strongly from 2024 onwards, with visa signings reaching 120,000 units and an advance in new housing starts of around 15% by 2025.
Impact on Housing Prices
The mismatch between supply and demand will continue to put pressure on prices, which are expected to grow by around 5% per year during 2024 and 2025. This increase will be more pronounced in areas with high demand and limited supply, which could present attractive investment opportunities for those interested in the Spanish real estate market.
Conclusion
The real estate outlook for the next two years in Spain is promising, with continued growth in demand and home prices. At HabitaRetail, we are prepared to help our clients navigate this dynamic market, ensuring that each transaction is handled with the utmost rigor and professionalism.
