Why is the Perfect Time to Invest in Spanish Real Estate?

4th July 2025
Home > News > Why is the Perfect Time to Invest in Spanish Real Estate?

Spain is quickly becoming Europe’s economic powerhouse, and its real estate market is riding this wave with confidence. If you’ve been considering buying property in Spain—whether as a holiday home, investment, or rental—this could be your golden opportunity.


Spain: The New Economic Leader of Europe

In 2024, Spain topped the European growth charts:

GDP growth: +3.2% (well above the eurozone average of 0.9%).

Outperformed Europe’s three largest economies:


  • Germany: –0.2%
  • France: +1.1%
  • Italy: +0.7%

Spain’s growth isn’t slowing either:

In Q4 2024, the economy grew by a strong +0.8%.



What’s Driving Spain’s Boom?

1. Robust Domestic Spending:

Household consumption rose +1%, government spending +0.3%, and investments soared +2.9%.

2. A New Golden Era of Tourism:

94 million tourists visited Spain in 2024—up 10% from the previous year.

Tourism now accounts for a remarkable 13.2% of Spain’s GDP.

3. Labor Market Strength:

Unemployment has dropped to 10.6%—its lowest level since 2008.

4. Smart Use of EU Recovery Funds:

Spain has tapped into €47.6 billion in EU recovery funds by the end of 2024, investing heavily in infrastructure and business growth.

In fact, 45% of Spanish businesses relied solely on these funds for investment.


Real Estate: Strong, Stable & Growing

Spain’s property market is booming:

  • Average property prices rose by +5.8% in 2024.
  • Actual sale prices (transaction prices) surged by +8.4%—showing strong buyer competition.

This indicates that many buyers are now willing to pay close to, or even above, asking prices in certain regions.

Financing conditions have also improved:

  • Interest rates have moderated.
  • Mortgage lending is increasing.
  • Experts predict continued—but healthy—growth into 2025, with no signs of a housing bubble.


How Does This Compare to the UK?

While Spain is thriving, the UK faces more subdued conditions:

  • UK economic growth has remained sluggish compared to Spain’s rapid pace.
  • The UK property market has faced cooling demand due to higher interest rates and economic uncertainty.
  • Meanwhile, Spain offers not only higher capital appreciation potential but also stronger rental returns, especially in tourist hotspots like Marbella, Málaga, Valencia, and the Canary Islands.
  • Moreover, many British investors are looking abroad post-Brexit, and Spain—with its robust economy and attractive lifestyle—is often their top choice.


Who Should Consider Buying Now?

our Goal

Recommended?

Why?

Long-Term Investment

✅ Yes

Steady growth, tourism, strong EU funding

Rental Income / Airbnb

✅ Yes

Booming tourism, high rental demand

Holiday Home

✅ Yes

Excellent lifestyle, long-term value

Quick Resale (Flipping)

⚠️ Caution

This is a long-term market, not for flipping

 

Why Choose Move2Marbella?

We don’t just sell properties—we help you make smart, strategic investments.

With local expertise and full English-language support, we’ll guide you through every step of your property journey.

👉 Act smart, invest now—Marbella is waiting for you!


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