Spain Property Market - June 2025 Update

Spain’s housing market remains on the rise. Property prices are expected to climb 4.5% nationwide this year, with over 30% of cities forecasting increases above 10%, especially in hot markets like Madrid, Costa del Sol, and the Canary Islands.

Madrid is now the N2 real estate capital in Europe, just behind Berlin. Meanwhile, Costa del Sol, Costa Blanca and Mallorca lead Spain’s luxury property scene, attracting high-net-worth investors and expats seeking premium coastal living.

To combat a growing housing shortage, the Spanish government is:

Tripling its housing budget to €7 billion

Expanding social housing stock from 3% to 8%

Revitalizing former “ghost towns” like Seseña and Valdeluz

A controversial 100% tax proposal on non-resident, non-EU buyers is in discussion — causing concern among international buyers.

Eco-friendly and smart homes are gaining traction, with 1 in 5 homes expected to feature smart technology by year-end.

Foreign lifestyle migrants — particularly from Ireland, the UK, and Germany — continue to relocate for affordability, sun, and quality of life.