Houses, record sales in Spain and yields above inflation

In addition to outperforming the eurozone in terms of economic growth, Spain is also showing unbeatable (or almost unbeatable) vitality in the real estate market. Residential is leading the way, with sales and prices at levels not seen in almost two decades. In the first half of last year alone, transactions grew by 7.6 per cent, 33 per cent higher than the 10-year average, while for the whole of 2025 they rose (+5 per cent) to 750,000, the highest figure since 2007.

Even on the price front, compared to the main European nations considered to be the most important pools of buyers or direct competitors - from Germany to France, Holland, England, Sweden, Denmark to Italia and Belgium - Spain continues to stand out for its extremely attractive price profile for investors. According to the latest report on the Spanish property market by Dils Lucas Fox, Spanish property values have grown by 34% over the past five years, outperforming nine of the 12 countries surveyed. From 2016 to the present, property values have increased by 47% against a 26% increase in inflation, providing solid real returns for investors. On the other hand, looking at the last three months of last year alone, house values in the Iberian Peninsula posted the sharpest increase (+12.9%) in almost two decades.

Primarily driving the market is the lack of supply. New building site openings increased by 15 per cent to 115,439 units. But according to the industry consensus, more than double that number would be needed to meet demand. "New construction is still far from meeting demand, while Spain's population continues to grow," explains Paloma Pérez Bravo, ceo residential Dils Lucas Fox. "This imbalance between high demand and limited supply, together with improved financing conditions, are the key driver of the current boom and reinforce Spain's position as one of the most attractive residential markets in Europe, both for lifestyle buyers and long-term investors.

Added to this are clear regulations and lower construction costs than elsewhere. The Hispanic peninsula thus enjoys a mix of factors that make it fertile ground for major investments. "The turning point has also come with the pandemic that has cleared customs of smart working, making it part of everyday life,' explains Sara Damasceni, founder of Dama Re, a real estate boutique operating in Italia and Spain. 'Digital nomadism has made Spain an extremely attractive country. The Digital Nomad Visa has in fact attracted younger, tech-oriented buyers (IT specialists, managers), who are not just looking for a holiday home (the visa is 12 months renewable for five years) but a main residence, fuelling the medium-term rental market (flex living) and sales in coastal cities.

"The boost to the real estate market also comes from school and university facilities," Damasceni adds. If in fact American universities have lost appeal in recent times - due to political issues - Madrid has become the reference point for international private universities, with excellences such as IE Tower, one of the few vertical campuses in the world. Likewise in Barcelona, work is going ahead on the Ciutadella del Coneixement, a multi-million euro project of the Barcelona municipality together with the University, the Ministries of Science and University and other institutions aimed at creating a pole for research and innovation in Europe. In Malaga, on the other hand, the Campus de Teatinos has undergone a significant expansion in recent years, becoming a modern technological and academic complex. Completing the picture is also the arrival of major giants - such as Google, which opened its European Safety Engineering Centre in 2023, or Servinform in 2024 - that are bringing skilled jobs and changing the social fabric.