2025-06-01-莱坊-Spain_New_Build_Residential_Snapshot_Q1_2025_2页_579kb

Residential Market Summary: Q1 2025

Core Content

The residential market in Spain remains dynamic in 2025, driven by strong demand and continued growth in transactions and prices. The data is compiled quarterly by the Knight Frank Spain office, based on real market trends and expert analysis.

Key Market Indicators

• GDP Growth: Spain's GDP grew by 0.6% in the first quarter of 2025, marking an upward revision by the IMF due to the impact of U.S. tariff policy. This growth is projected to continue, with an estimated annual growth rate of 2.5% by the end of 2025.
• Mortgages: The number of mortgages signed in 2024 increased by 12% compared to 2023, and forecasts suggest a similar growth rate of 10–12% in 2025.
• Approvals: In 2024, the number of housing approvals reached a 17% annual increase, with nearly 128,000 registrations. This is the highest level in the last 15 years, but still insufficient to meet demand.
• Final Works Certificates: After three consecutive years of decline, final works certificates rebounded by 12% in 2024.

Transactions and Prices

• Transactions: Spain recorded over 695,000 residential transactions in 2024, a 12% increase compared to 2023. Forecasts for 2025 predict an additional 10–12% growth.
• Price Trends: The average price of free-market housing in Spain exceeded €1,972/sq m in the fourth quarter of 2024, showing a 7% annual increase. New builds saw a rise to €2,305/sq m (+6.4% annually), while resale properties reached €1,962/sq m (+7.0% annually).
• Foreign Buyers: In Q1 2025, 14.1% of home purchases were made by foreign buyers, consistent with the previous year's 14.2%. The largest contributors were:
  • 8.24% from the UK
  • 6.35% from Germany
  • 6.05% from the Netherlands
  • 5.05% from Morocco

Regional Price Variations

• Madrid: Recorded the highest annual price increase at over 20%.
• Santa Cruz de Tenerife: Increased by 18.4%.
• Malaga: Rose by 15%.
• Other Notable Regions:
  • Alicante: +14.7%
  • Murcia: +14.6%
  • Valencia: +14.4%

Key Information

• The residential market in Spain continues to show resilience despite macroeconomic challenges.
• The increase in approvals and final works certificates signals a potential recovery in construction activity.
• However, the supply of new housing is still not meeting the rising demand, which may lead to continued price pressures.
• Foreign investment remains a significant factor, with the UK being the largest source of foreign buyers.

Summary

Spain's residential market is showing signs of strength in 2025, with a dynamic demand and upward trends in both transactions and housing prices. Despite a revised GDP growth estimate and a rebound in construction activity, the market still faces challenges in meeting demand. Foreign buyers continue to play a crucial role, particularly from the UK, Germany, the Netherlands, and Morocco. Regional price variations highlight the uneven development across the country, with Madrid leading the way in price increases.