Lorraine Williamson
In 2024, the Spanish real estate market experienced significant growth. According to the Spanish Ministry of Housing, 715,429 houses were sold, marking a 12% increase compared to 2023. Foreign buyers accounted for 7.84% of these transactions, purchasing 56,139 homes.
This represents an increase of 2.2% (1,200 homes) from the previous year. Among residents in Spain, both citizens and foreigners, home purchases rose by 13%. The Spanish Ministry of Housing and Urban Agenda highlights these figures as part of the government’s commitment to promoting permanent residence. This initiative is crucial amid the ongoing housing crisis.
End of ‘Golden Visas’ to regulate housing market
In response to market pressures, the Spanish government decided to abolish the ‘Golden Visa’ scheme from 3rd April 2025 with applications accepted until 1st April. Introduced in 2013, this program granted residence permits to non-EU citizens who invested at least €500,000 in Spanish real estate. Authorities argue that the scheme contributed to rising housing costs in certain areas. Its removal is intended to increase housing availability for local residents.
Preferred locations for foreign buyers
Foreign real estate purchases were concentrated in Málaga and Alicante, making up 18.7% and 34.8% of all foreign-buyer transactions, respectively. Madrid and Barcelona saw fewer transactions in comparison.
Growing interest from emerging markets
A report from real estate firm Engel & Völkers highlights increasing interest from buyers in Poland and the Czech Republic, alongside traditional investors from Belgium, the Netherlands, and the UK. Latin American buyers are also becoming more prominent in the luxury market, particularly in Madrid. Political developments in the United States have contributed to Madrid emerging as a key global destination for Latin American investors.
Market forecast for 2025
Projections indicate continued growth in Spain’s real estate market. Analysts forecast 825,000 real estate transactions in 2025, with 725,000 involving existing homes. Prices for existing homes are expected to rise by 12%, while new construction could see a 15% price increase. Despite concerns, experts do not foresee a real estate bubble forming.
Also read: South Americans lead surge in the purchase of Spanish properties