The real estate sector is heading into 2025 with steady evolution, driven by dynamics that reinforce stability and generate key opportunities in areas such as residential rentals, logistics, and retail.

The growing demand for housing and an insufficient supply will continue to be a decisive factor in the Spanish real estate market. Over the past year, the market has shown significant consolidation and expansion, with price increases projected between 3.5% and 7% for 2025, according to Gesvalt. Below, we outline the key trends shaping the real estate landscape this year.

Key Real Estate Trends in 2025

Expansion of the Office Market

The office sector will continue to recover thanks to the stabilization of interest rates and improved economic conditions. Investments in premium and well-connected suburban areas are expected to increase, strengthening the demand for modern and flexible workspaces.

Growth in the Retail Sector

Interest in retail will keep rising, both in major shopping streets and commercial centres. Evolving consumer habits are driving strategic renovations and adapting retail spaces to new shopping trends.

Surge in Logistics and Industrial Real Estate

Well-connected suburban areas will continue attracting investment in logistics platforms, focusing on sustainability and energy efficiency. E-commerce growth and supply chain optimization will further consolidate this trend.

Transformation of the Residential Market

Sustainability, digitalization, and flexibility will define the residential sector. Green certifications, sustainable materials, and advanced technologies such as virtual tours and digital contracts will become priorities. Coliving and multifunctional spaces will gain prominence.

Increased Investment in Tourism and Coastal Areas

Tourism in Spain reached record levels in 2024 and will remain a key driver. Destinations like Costa Blanca are becoming strategic investment hubs, especially given the instability in other Mediterranean regions.

Growth of Specialized Residences

An ageing population and increasing demand for student accommodations will drive investments in specialised residences. The construction of these spaces is expected to grow as the market still does not meet existing demand.

Advances in Sustainability

Environmental regulations and European incentives promote building rehabilitation with energy efficiency and sustainability criteria. This is leading to a transformation in the real estate sector, which is focused on emission reduction and renewable energy use.

Economic Factors Influencing the Real Estate Market

Declining Interest Rates

The Euribor has maintained a downward trend, improving access to mortgages with better conditions. This could translate into increased housing demand and a more dynamic market.

Rising Property Prices

Property values are expected to rise steadily, with increases projected between 3.5% and 7% in 2025. In the rental market, prices are expected to grow between 3% and 6.5%, significantly impacting high-demand areas.

Supply Shortages

The imbalance between supply and demand will continue to drive market price increases. Policies promoting affordable housing and increasing supply will be crucial to mitigate this effect.

Tourism as a Growth Driver

Tourism will remain a strategic pillar for the economy and real estate market. However, it also faces challenges such as gentrification and the need to balance growth with sustainability.

Market Projections for 2025

• Property Value Growth: Expected to increase between 3.5% and 7%.
• Rental Prices: Forecasted to rise between 5% and 7%, especially in high-demand areas.
• Real Estate Transactions: The projected annual growth of 3.5% to 5% reflects moderate but stable market activity.

2025 is a pivotal year for consolidating the real estate sector’s evolution, focusing on innovation, sustainability, and strategic planning aligned with new market demands.