Property has become a controversial issue in Spain in the post-pandemic period. Whether it be skyrocketing rents or the government searching for ways to ban or tax non-resident foreigners from buying property, the Spanish real estate market has certainly earned headlines.
To take a wider view, in the first half of the year, Spanish property has continued to be big business. The market saw total investment volume of €7.3 billion, representing a year-on-year increase of 22% and 15% above the average for the decade, according to figures from commercial property company CBRE.
In very basic terms, the Spanish property market, whether for purchase or rent, seems to be going in one direction: upwards, in price terms at least. Demand is high and supply is low, making the market tricky for many.
That’s not to say that there aren’t some (admittedly small) signs of encouragement for people wanting to get on the property ladder in Spain, however.
Forecasts suggest that the direction of travel is unlikely to change heading to the second half of 2025.
House prices in Spain have now risen for 11 consecutive years, according to INE data, and increased by a staggering 70% in the last decade alone. It’s not without reason that summer 2024 saw thousands of Spaniards take to the streets to demand affordable housing.
As September arrives, for the first time in several years the mortgage market in Spain has started showing signs of becoming more accessible to households traditionally excluded from the market, mainly young and single people. This is mainly due to the interest rate cuts by the European Central Bank.
A recent report published by the Bank of Spain points out how monetary easing, lower interest rates and income growth, albeit moderate in Spain, have opened a small window of opportunity to access home ownership. The monetary shift has made credit cheaper compared to 2023, and the average rate for new mortgages stood at 2.91% in May 2025.
If you are looking to buy a property in Spain, Portugal or Greece and need a mortgage, email mark@vci-network.com for the latest criteria