Spanish real estate market 2025
Key Figures for 2025
According to Spain’s official statistics agency, Instituto Nacional de Estadística (INE):
- House prices increased by 12.9% year-on-year in Q4 2025.
- Existing homes rose 13.1%.
- New-build homes rose 11.2%.
- This was the strongest annual increase since 2007.
The Spanish government also reported:
- More than 714,000 housing transactions in 2025, the highest level since 2007.
- Housing construction activity reached its strongest fourth-quarter performance in 17 years.
Why Prices Continued Rising
The main driver is insufficient supply.
CaixaBank Research estimates that Spain faces a growing housing deficit concentrated in:
- Madrid
- Barcelona
- The Balearic Islands
- Costa del Sol
- Major tourist destinations
The shortage is expected to persist for several years despite increased construction.
HOSPITALITY
Spain remains one of the most attractive hotel investment markets in Europe.
Strong tourism demand, rising hotel revenues, limited supply in prime destinations, and continued institutional investment are supporting hotel valuations across the country. According to CBRE, Spain is currently the second-largest hotel investment destination in Europe after the UK. ations
Operational Hotel Performance
Spain’s hotel sector continues to show exceptional fundamentals:
- More than 20 million international visitors arrived during the first quarter of 2026, the strongest first quarter ever recorded.