The Spain residential real estate market size was USD 145.18 Billion in 2022 and is likely to reach USD 264.67 Billion by 2031, expanding at a CAGR of 6.9% during 2023–2031. The growth of the market is attributed to the increase in construction as well as population.
Spain’s real estate market is posting a positive trend, especially in terms of demand. The revival in house sales was high in 2021. For instance, 468,000 transactions were completed by October 2021, a growth of 35.9% compared to 2020 and up by 8.3% on 2019. The activity in the residential sector was highest since 2008. A large part of this revival in demand has come from a reduction in pent-up demand and the forced savings accumulated during the months of lockdown and severely restricted travel, combined with highly favorable financing conditions, which make it more attractive to buy and invest in real estate assets. The residential sector is therefore on track to close 2021 with 545,000 sales in the year as a whole.
Before the pandemic began, the residential real estate market in Spain was growing at a healthy pace, which was then dented by Covid-19 as the construction of housing units came down. However, in 2021, the market was back on track with increase in construction.
As per the latest data from the Appraisal Society, it indicates 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 12 months to Euro 2,482 (approximately USD 2812) 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, and has reflected in the 16.7% collapse of sales in Spain in 2020 to 419,898 transactions. As a result, experimental ways of life are introduced into the real estate market to compensate for the lack of social interaction between people.
Spain Residential Real Estate Market Trends, Drivers, Restraints, and Opportunities
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Increasing urbanization in the country is estimated to accelerate the growth of the market.
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Rising development of policies implemented for affordable houses by government agencies is expected to boost the residential real estate market.
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Increasing tourism is expected to boost the residential real estate market.
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Expanding deployment of technology in most aspects of real estate development and business is likewise expected to create lucrative opportunities during the forecast period.
Scope of Spain Residential Real Estate Market Report
The report on the residential real estate market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Residential Real Estate Market - Spain Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Condominiums, Villas, and Others)
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Country Scope
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Spain
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast.
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Key Players Covered in the Report
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MetroVacesa; AEDAS homes; Via Celere; AELCA and Neinor Homes.
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Spain Residential Real Estate Market Segment Insights
Housing segment is expected to grow at a rapid pace
Based on types, the market is divided into condominiums, villas, and others. With the fall in GDP of almost 11% in 2020 due to Covid-19 pandemic, it managed to close with a price increase of 1.5%, which was a sharp slowdown, although very far from the collapse that was expected in economy. The condominiums segment is anticipated to account for a significant market share during the forecast period. On the other hand, the villas segment is expected to grow at a healthy rate due to rising tourism in the country.
Segments
The Spain residential real estate market has been segmented on the basis of
Types
- Condominiums
- Villas
- Others
Country
Key Players
Competitive Landscape
Key players competing in the residential real estate market are MetroVacesa; AEDAS Homes; Via Celere; AELCA; and Neinor Homes.
Companies are partnering with local partners and engaging in joint ventures to expand their market share.
In February 2022, AEDAS homes obtained permission to build three projects in the Benalúa Sur sector. This is expected to result in the construction of 137 homes. The company is estimated to invest 33 million euros in development of new projects.
In February 2022, Neinor Homes delivered 90 properties in Velilla de San Antonio under Limited Public Protection (VPPL) regime and Basic Public Protection Housing (VPPB). The price range was between euros 1440,00 and 160,000.
In February 2022, MetroVacesa became the first Spain-based developer to sell its retail properties in Metaverse.
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