Real estate market index
Spain felt the consequences of the 2008–2014 property crisis particularly acutely. In 2025 the market index exceeded its 2008 peak for the first time; adjusted for euro area inflation, however, that level has still not been regained.
Number of transactions
The number of transactions has likewise been rising since 2015. This reflects a very steady year-on-year growth trend, which accelerated in 2024 and retained its positive momentum in 2025. It is a meaningful indicator of the overall health of the property market.
Average price per square metre
The average price per square metre also shows steady growth, mirroring the trajectory of the index, which points to the absence of significant internal imbalances.
Exceptions
Growth in rental yields has naturally slowed following the 2024 jump. The earlier surge was driven by tighter rental regulation on the part of the country's fiscal authorities, which created a high base for subsequent movements in the indicator.
Rental yield
The most favourable balance between rental yield and average price per square metre is found in Catalonia and Valencia, the least favourable in Madrid.
Overall, Spain's property market is currently on a relatively stable trajectory; ongoing political debate, however, creates a negative backdrop for foreign investors. The government faces mounting public pressure, as the cost of living in relative terms is declining because of rising property prices — particularly in resort regions. This dynamic creates the conditions for the possible introduction of restrictive measures aimed at foreign buyers and investors.
As a result, policy decisions may include additional taxes on property purchases by foreigners — along the lines of those introduced in Vancouver and Singapore — or partial bans on acquisitions in particular regions or cities. This creates particular risks in Catalonia, Valencia and Andalusia, as well as in the Canary and Balearic Islands.
Against this backdrop, we advise investors who already hold assets in Spain to consider partial or full exit strategies in order to lock in gains. Those currently assessing Spain as an investment destination may find it prudent to defer entry until the political landscape becomes clearer.
Should taxes or restrictions on foreign buyers be introduced, the regions affected could face a sharp fall in international demand. That in turn could lead to significant price corrections and reduced liquidity, making it harder to sell assets that are currently in strong demand.
At present it is impossible to predict the final form of the proposed legislation, or which nationalities would be affected most severely. European Union citizens are likely to be in a more favourable position — either exempt from the restrictions or subject to milder terms. Conversely, the probability of stricter restrictions for citizens of non-EU countries remains considerably higher.
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