14.01.2025 
Trends in the Secondary Housing Market in Spain in 2025
Spain remains one of the most attractive markets for real estate investors, including in the secondary housing market. In 2025, we observe a number of key trends that are influencing price dynamics, demand, and supply in this segment. In this article, we will look at the most important economic, demographic, and social factors shaping the current market situation, and offer recommendations for investors.
Economic and Demographic Growth Factors
Among the main growth factors in the secondary housing market in Spain are economic and demographic changes. In 2024, the country's GDP grew by 2.5%, and in 2025, a growth of 2.1% is expected, which positively affects the purchasing power of the population. The reduction in mortgage interest rates is also contributing to an increase in housing demand, especially in large cities and popular coastal areas such as Costa Blanca.
Another important factor is the changes in the demographic situation: as the number of elderly people increases and internal migration grows, the demand for housing rises. Young people tend to prefer more compact apartments and areas with good access to public transport and well-developed social infrastructure.
Price Trends in the Secondary Housing Market
One of the most prominent trends in the secondary housing market in Spain is the rise in prices, particularly in large cities and tourist regions. For example, the Balearic Islands have seen a 90% increase in secondary housing prices in recent years, which far exceeds the national average. In Madrid and Málaga, price increases of 70% are also observed.
However, the secondary housing market remains more flexible than the primary market: price corrections occur more quickly, and in 2023, many markets showed negative trends. At the same time, in cities like Madrid, Valencia, and the Canary Islands, prices have remained unchanged, confirming the stability of demand in these regions.
Investment in the Secondary Housing Market
For investors looking to purchase property in Spain, the secondary housing market represents a promising segment. It not only offers a wider range of properties but also provides an opportunity to generate rental income. While newly built properties are becoming more expensive, secondary housing offers a reasonable combination of price and quality, especially in popular areas such as Costa Blanca.
It is also worth noting that a significant portion of real estate transactions in Spain takes place in the secondary market. According to statistics, the share of transactions in the primary market is only 8-10%, while the secondary market accounts for 89% of the total volume of transactions. This is due not only to high demand but also to the limited supply of new properties.
The Rental Market and Trends for 2025
In 2025, the rental market in Spain is also showing steady growth. Specifically, there is an increasing demand for small apartments for rent, particularly in large cities such as Madrid and Barcelona. Renters are increasingly opting for flexible living arrangements, which has led to the popularization of the concept of coliving — shared housing spaces for young professionals and students.
This segment of the market responds to new demands related to labor mobility and flexibility, and it will continue to develop in the coming years. At the same time, high demand for rental housing combined with limited supply is driving up rental prices, which investors should also take into account.
Conclusion
Thus, the secondary housing market in Spain in 2025 continues to show stable growth, driven by both economic factors and demographic changes. For investors, this market remains attractive, particularly in popular regions such as Costa Blanca, Madrid, and Barcelona. With rising property prices and limited new construction supply, secondary housing represents an excellent investment opportunity.
It is important to note that in the coming years, the secondary housing market will continue to experience price growth, particularly in popular and highly valued regions. Therefore, for successful investments, it is necessary to carefully analyze market trends and select suitable properties with long-term growth prospects.
