The Spanish real estate market is facing a moment marked by strong contrasts. While some areas of the country are experiencing significant housing supply stress, other regions remain in balance. This diverse panorama requires a detailed analysis and the implementation of specific solutions to address the challenges of a sector that, despite the difficulties, shows signs of optimism for 2025. Real estate GILMAR analyzes the challenges and opportunities that 2025 presents for the sector.
Tension in the market
Talking about the housing market in Spain implies recognizing that it is not a homogeneous reality. There are areas, such as large cities and coastal areas with high demand, where the supply does not meet the needs of the population, which generates strong pressure on prices. However, there are also regions less affected by this phenomenon, which shows a fragmented and diverse market. In these stressed areas, the solution involves a strategic approach and the adoption of coordinated measures between the public and private sectors. One of the main proposals suggested by Jesús Gil Marín, CEO of GILMAR, consists of “the creation of finalist and affordable land, which would allow increasing the capacity for housing construction.” Along with this, Gil Marín explains that it is crucial to promote promotion of protected housingeither through public initiatives or through collaborations with the private sector.
Another fundamental aspect is the streamlining of urban planning procedures. As several real estate agencies have pointed out, the bureaucracy associated with the construction and rehabilitation of homes generates unnecessary costs and time which could be significantly reduced with more efficient processes. This change would not only benefit developers, but would also positively impact citizens’ access to housing.
The rehabilitation of old or disused properties is also presented as a key tool to increase supply. Incorporating these homes into the market, in addition to expanding the available options, would contribute to improving the energy efficiency of the real estate stock in line with the sustainability objectives that this government and the European Union propose.
Encouraging prospects
In the field of sales, the forecasts for 2025 are optimistic. Gil Marín points out that “factors such as the growing interest of international investors in cities such as Madrid, Malaga and other areas of the Costa del Sol are driving the demand for real estate. This dynamism is added to an active national market, which generates a favorable scenario for next year». In addition, the gradual decrease in interest rates and greater accessibility to mortgage credit are expected to facilitate transactions. These elements, combined, create the ideal environment for a healthy real estate market, with robust demand and attractive financial conditions for buyers and developers. Regarding prices, GILMAR indicates that its evolution will depend largely on the location. «Areas with high demand and limited supply, such as Madrid and Malaga, will likely experience price increases sustained by strong economic fundamentals. On the contrary, in other less dynamic regions, prices could remain stable or even decrease slightly.
Rental market challenges
The rental market is one of the segments that faces the greatest challenges. Short supply and growing demand are exerting a constant pressure on priceswhich could continue to increase in 2025. “Added to this is the perception of legal insecurity among owners, which has led many of them to withdraw their properties from the market, further aggravating the situation,” says Gil Marín. “Price control policies in stressed areas, although well-intentioned, are also having adverse effects,” he adds. Limitations on rents are reducing profitability for owners, thus discouraging the rental of homes. This creates a vicious circle that affects both supply and prices.
«To stabilize this segment, it is necessary to guarantee a balance that protects the rights of tenants, but also offers legal security and profitability to owners. Only in this way can we promote a dynamic and sustainable rental market, capable of responding to current needs,” suggests the CEO of GILMAR.
Better mortgage conditions
A positive aspect of the forecasts for 2025 is the improvement in mortgage conditions. The Euribor, which has experienced significant increases in recent years, is expected to begin to gradually decline. Estimates suggest that this index could be around 2.5% at the end of 2025which would translate into more affordable mortgage payments for buyers. Furthermore, competition between banking entities could encourage the offer of more attractive conditions for buyers, facilitating access to credit and further energizing the market. This trend will be especially beneficial for young people and families looking to purchase their first home, a segment that has faced great difficulties in recent years.
A sector in constant transformation
Despite the challenges, the Spanish real estate market has a great capacity to adapt. At GILMAR they are optimistic and point out that “if appropriate measures are implemented and collaboration between the public and private sectors is encouraged, 2025 could be a year of important progress in the stabilization of the sector.”
The balance between supply and demand, together with a sustainable and efficient approach, will be key to facing the challenges of a market in constant transformation. Opportunities are on the table, and the future will depend on the ability of the government, and the sector, to innovate and adapt to new economic and social realities.
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