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PUBLISHER: Mordor Intelligence Pvt Ltd | PRODUCT CODE: 1034031

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PUBLISHER: Mordor Intelligence Pvt Ltd | PRODUCT CODE: 1034031

Residential Real Estate Market in Spain - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

PAGES: 100 Pages
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Spain's residential real estate market is poised to grow at a CAGR of 10% by 2026 as the economic environment is quite favourable.

Before the pandemic began, the residential real estate market in Spain was growing at a good pace which was surely dented by Covid-19 as the construction of housing units also came down. But in 2021, the market is back on track with increase in construction as well as the demand for such property.

As per the latest data from the Appraisal Society indicate that the price of new housing has remained stable, in a context of increased sales and improvement in economic indicators. The average price of new homes has grown 0.4% in Spain over the last twelve months to 2,482 euros per square meter . This slight increase has been generalized and has been registered in 16 of the 17 autonomous communities.

The economic consequences of the Covid crisis made a dent in the real estate market, as reflected in the 16.7% collapse of sales in Spain in 2020 , to 419,898 transactions, mainly due to the decline in used housing (-18.7%), higher than the new one (-7.3%).

Key Market Trends

Rise in International Property Buyers in Spain

Spain is a popular international destination for visitors, investors, and those looking to relocate to the country. It is a safe and stable country with a rich cultural tradition. International interest from buyers both inside and outside of the European Union is increasing.

According to the latest data from the College of Registrars , in 2020 11.3% of home purchases have corresponded to foreigners, compared to 12.6% in 2019, reaching 47,500 operations, compared to 63,000 operations in 2019.

Despite the decrease in sales, these have been at a higher price, since 7% of all home purchases made by foreigners presented an amount equal to or greater than 500,000 euros (6.1% in 2019). 34.3% of these purchases corresponded to non-EU nationalities, compared to 36.1% in 2019.

In addition, the average mortgage for foreigners in 2020 rose 6.3%, to 142,603 ​​euros , compared to the general average mortgage, which was 131,935 euros, with an increase of 3.8% over the previous year.

Increase in New Housing Unit Sales in Spain

Housing in Spain does not stop giving surprises. With the fall in GDP of almost 11% in 2020 from Covid-19, it managed to close with a price increase of 1.5%, which was a sharp slowdown, although very far from the collapse that some expected. In June 2021, it has once again left the most pessimistic speechless when - according to notaries data - 65,000 homes were sold, with 70% growth from 2020 and which also leaves the 45,912 sold in June far behind. 2019, the year before the pandemic crisis

The high liquidity of the system, cheap financing, the support of ERTE, the new demand born after home confinement, the return of foreign capital or housing as an investment have been decisive to explain this good behavior, which resurrects that dangerous and old myth that housing never goes down in Spain.

Competitive Landscape

The Spanish residential real estate market is competitive with the presence of property developers, like Neinor Homes, AEDAS Homes, Via Celere, and AELCA. The market has also witnessed the entry of new players like Kronos Homes and Q21 Real Estate Market. The growing presence of international funds and foreign capital is increasingly attracting domestic developers to have joint ventures as a way of gaining a foothold in the country and enhance their financial strength and management expertise. Recent examples of these ventures include HIG and Monthisa, Pimco and Lar Espana, and KKR's partnership with Qubit. The market recovery in Spain's residential real estate is likely to continue, which is expected to attract more players to enter the market.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 49847



  • 1.1 Study Assumptions
  • 1.2 Scope of the Study




  • 4.1 Current Economic Scenario and Consumer Sentiment
  • 4.2 Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
  • 4.3 Government Initatives, Regulatory Aspects for Residential Real Estate Sector
  • 4.4 Insights on size of real estate lending and loan to value trends
  • 4.5 Insights on interest rate regime for general economy, and real estate lending
  • 4.6 Insights on rental yields in residential real estate segment
  • 4.7 Insights on captial market penetration and REIT presence in residential real estate
  • 4.8 Insights on affordable housing support provided by government and public-private partnerships
  • 4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
  • 4.10 Market Dynamics
    • 4.10.1 Drivers
    • 4.10.2 Restraints
    • 4.10.3 Opportunities
    • 4.10.4 Challenges


  • 5.1 By Type
    • 5.1.1 Condominiums
    • 5.1.2 Villas
    • 5.1.3 Other Types
  • 5.2 By Key Cities
    • 5.2.1 Madrid
    • 5.2.2 Catalonia
    • 5.2.3 Valencia
    • 5.2.4 Barcelona
    • 5.2.5 Malaga


  • 6.1 Market Concentration
  • 6.2 Company Profiles
    • 6.2.1 MetroVacesa
    • 6.2.2 Neinor Homes
    • 6.2.3 AEDAS homes
    • 6.2.4 Via Celere
    • 6.2.5 AELCA
    • 6.2.6 Acciona Inmobiliaria
    • 6.2.7 KRONOS
    • 6.2.8 Pryconsa
    • 6.2.9 Q21 Real Estate
    • 6.2.10 Quabit Inmobiliaria


8 Disclaimer

9 About Us

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Jeroen Van Heghe

Manager - EMEA



Christine Sirois

Manager - Americas


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