
The Spanish Property Market in 2025: Sunshine, Stability, and Strong Demand

The Spanish property market is enjoying a resilient and optimistic 2025, especially in prime coastal areas that remain magnets for international buyers. From the Balearic Islands to the Andalusian coast, the combination of robust demand, lifestyle appeal, and stabilising prices has brought renewed confidence to the sector.
“Spain continues to be one of the most sought-after destinations for lifestyle buyers,” says Tim Swannie, Director of Home Hunts. “We’ve seen strong interest in 2025, particularly in Ibiza, Mallorca, Costa Brava and the southern coastal regions. It’s not just about investment—it’s about quality of life.”
Spanish Property Market Overview: Resilience and Recovery
While parts of the Spanish property market saw slower activity during 2023 due to inflation and interest rate hikes, 2024 brought a turnaround, and 2025 is building on that recovery. The national average price of resale homes has risen by approximately 2.3% year-on-year, with coastal and island regions outperforming inland areas.
Spanish mortgage rates have also begun to decline after peaking in 2023, encouraging more buyers—especially international clients who often purchase with partial financing—to re-enter the market.
Spotlight on Key Regions
Ibiza: Limited Supply Meets Ever-Growing Demand
Ibiza remains one of the most exclusive and competitive markets in Spain.
- High-end villas and fincas near Santa Gertrudis, San José, and Cala Jondal are especially sought after.
- The island’s strict zoning laws and limited new construction keep supply tight, maintaining strong prices.
- CLICK HERE to browse through a range of homes across Ibiza
“Ibiza is unlike anywhere else in Europe,” says Swannie. “Buyers are looking for a mix of privacy, views, and access to world-class beaches—and they’re willing to pay a premium for that.”
Mallorca: Sophisticated and Stable
Mallorca’s market continues to thrive thanks to its mix of offerings, from Palma’s elegant townhouses to luxury countryside estates in the Tramuntana region.
- Areas like Port d’Andratx, Deià, and Pollensa are particularly in demand among northern European buyers.
- Direct, year-round flights from key European cities further strengthen the island’s appeal.
- CLICK HERE to browse through a range of homes across Mallorca
Costa del Sol: A Return to Pre-Crisis Confidence
From Marbella to Estepona, the Costa del Sol is buzzing once again.
- Luxury new-builds and gated communities focused on sustainability and lifestyle are thriving.
- The high-end market is especially strong, with British, Scandinavian, and Dutch buyers leading the surge.
- CLICK HERE to search through a range of homes in this region
According to major property portals, demand for homes priced above EUR 1 million in the Marbella area increased by 4.1% in early 2025.
Costa Brava: Underrated Yet Rising
Quietly regaining popularity, the Costa Brava is attracting lifestyle buyers looking for authentic charm and value.
- Coastal gems like Begur, Cadaqués, and Tamariu are becoming favourites for buyers seeking relaxed, scenic living.
- Its proximity to Barcelona and the French border makes it ideal for second homes and long-term stays.
- CLICK HERE to look through a range of stunning homes in this area
Why Now? Three Key Drivers
1. Improved Mortgage Access
Spanish banks are once again offering competitive lending options, especially to EU residents, with fixed rates dipping below 3% in some cases.
2. Ongoing International Demand
Spain’s climate, healthcare, infrastructure, and cost of living continue to attract relocation and investment interest from across Europe and beyond.
3. Political and Economic Stability
Spain’s property market is viewed as safe and stable relative to many other European countries, particularly in lifestyle destinations with long-term growth potential.
Advice For Buyers
- Don’t delay—high-quality homes in sought-after areas are selling quickly.
- Work with an experienced buyer’s agent to navigate zoning, taxes, and local buying processes.
- CLICK HERE to search through stunning homes across France
Advice For Sellers
- If your property is in a lifestyle destination, now is an ideal time to list.
- Ensure your home is well-presented and priced competitively—buyers expect quality and move-in-ready condition.
- If you’re not sure which selling agent to use, do contact us, we will happily recommend some expert agencies.
Outlook for the Remainder of 2025
Forecasts suggest that Spain will finish 2025 with:
- National price growth above 3%
- Transaction volumes approaching pre-COVID levels
“We’re optimistic,” adds Tim Swannie. “The buyers are serious, the demand is sustained, and Spain’s appeal isn’t going anywhere.”
Home-Hunts Tip:
Whether you’re buying a finca in Ibiza, a villa near Palma, or a penthouse in Marbella, make sure you focus on lifestyle as much as returns. The best opportunities combine long-term value with the kind of living experience that makes Spain so appealing.
To discuss your criteria or find out more about Spanish property, call a Home Hunts consultant on +34 961 16 30 28.
To search for more luxury properties in Spain, France, Monaco or Switzerland, go to www.home-hunts.com. Follow us on Facebook or keep an eye on this page for more news and property insights. We look forward to hearing from you.