The forecasts for the real estate market in 2025 point to sustained growth, in line with the last months 2024. Regarding sales, an increase in demand and prices is expected. On the other hand, the rental market could reach historic highs in terms of prices.
Real estate market in 2025: dynamism in buying and selling
Experts agree that the real estate market will increase. The main reason is the cut in interest rates that began in 2024 and will most likely continue this trend. The Euribor, dragged down by this circumstance, has fallen by more than 1.2% in the last 12 months.
This greater ease of access to a mortgage will be an incentive for many buyers who waited for better conditions. Besides, we must add an increased savings capacity, a stable labour market and banking entities that have been moving their pieces for months to attract new clients with more competitive products.
Rising prices
This increase in demand for housing will inevitably be reflected in prices. Experts predict significant increases in the real estate market in 2025. The most cautious estimate is around 4%, but some experts point to figures close to 10%.
Furthermore, regarding new builds, prices could reach up to 15%.
The rental market in 2025
The forecasts for 2025 are not very encouraging for those looking for rentals. With rents at historic highs and a minimum supply available, the rental market will not experience significant changes.
The new Housing Law has not been enough to encourage owners of vacant homes to put the properties on the market nor to control prices. Actually, the supply has been reduced in stressed areas and where rental prices have been controlled.
In addition, the new regulations for illegal occupation of homes, currently being processed in parliament, exclude the tenants who stop paying the rent (inquiokupas). This means that complaints for non-payment of rent will follow the usual judicial route, not by quick trials. This legal uncertainty will mean that many owners of empty homes will continue to resist renting.
In short, expectations for the real estate market in 2025 are bullish in demand and prices but not in relation to the housing supply for sale or rent. Only the reduction in interest rates and better financing conditions will provide relief for those who want to buy.
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