The fourth quarter of 2024 confirms the continued growth of the Spanish property market. House prices continue to rise, particularly in sought-after coastal areas such as the Costa Blanca and Costa del Sol. Economic hotspots such as Madrid and Barcelona also show consistent price growth. In this analysis, we look at the developments in the property market in Q4 and look ahead to 2025.
General situation of the Spanish housing market in 2024 Q4
Average house prices rose 4.4% year-on-year and 2.2% compared to Q3.
Lower mortgage rates due to the European Central Bank’s relaxed policy are boosting the market.
Building permits rose 16.5% in the first ten months of 2024, but supply is lagging behind demand.
Real estate prices by autonomous region
Balearic Islands:: +10,8%
Canary Islands: +7,1%
Madrid: +7,0%
Valencia: +6,5%
Andalusia: +4,3%
In 13 of the 19 regions, the price increase accelerated or stabilized. No region experienced a significant decline.
Real estate prices per province
Málaga: +13,0% (jaarlijks), +4,8% (quarter)
Santa Cruz de Tenerife: +11,5%
Balearen: +10,8%, +3,9% (quarter)
Alicante: +8,5%
The largest increases were recorded in coastal areas and economically strong regions.
Real estate prices in major cities
Málaga: +12,4%
Valencia: +11,8%
Alicante: +10,8%
Madrid: +7,1%
Barcelona: +5,7%
Employment Areas such as Madrid and Barcelona are showing moderate growth, while coastal cities and tourist attractions are increasing in value faster.
Conclusion Spanish real estate market 2024 and expectations 2025
High demand for housing due to cheap mortgages and improved employment.
Limited offer leads to further price increases.
Strong growth in coastal areas such as Valencia, Malaga and the Balearic Islands.
Interest rates are expected to fall further in 2025, keeping mortgages cheaper. Spain remains an attractive market for investors and second home buyers.
Opportunities in the market
✅ New construction and luxury segment: High demand in Malaga and Alicante for modern homes with high-quality facilities.
✅ Developing regions: Murcia still offers affordable options, with growing interest from investors.
✅ Outlook 2025: With expected interest rate cuts and limited housing supply, prices are expected to continue to rise.
Are you looking for a home in Alicante, Malaga or Murcia? This is an ideal time to explore the possibilities. Contact us for a free consultation!
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.