The Spanish real estate market is experiencing a boom in the sale and purchase of second-hand homes. Recent data indicate that transactions have reached figures not seen since the real estate boom at the beginning of the century. What is the reason for this phenomenon? In this article we analyze the factors driving this trend, its impact on prices and the outlook for the market in 2025.
Factors driving demand for second-hand homes
Shortage of new housing supply
New construction has failed to meet the growing demand for housing in Spain. Many developments are concentrated in peripheral areas, while buyers continue to prefer homes in consolidated locations within cities.
Favorable mortgage terms
Despite fluctuations in interest rates, financial institutions have maintained attractive conditions for the purchase of second-hand homes, which has facilitated the purchase for thousands of Spaniards.
Buyer preferences for consolidated locations
Many buyers opt for homes in neighborhoods with developed infrastructure, close to work and educational centers and with access to public transportation. These areas tend to offer more second-hand housing options than new construction.
Impact on used housing prices
Significant year-on-year increases
Second-hand housing prices have experienced remarkable growth. In 2024, the average price of used housing in Spain increased by 8.4% year-on-year, reaching €2,389/m².
Regional price variations
Price increases have not been homogeneous throughout the country. While regions such as Navarra and Andalusia have recorded considerable increases, other areas have shown more moderate growth.
Real estate market outlook for 2025
Expected trends in sales and purchases
Experts expect second-hand home sales to continue at high levels, albeit with a moderate growth rate of 2% to 3% during 2025.
Expected price developments
It is estimated that prices will continue to rise, but with a more controlled increase compared to the growth recorded in 2024.
The boom in second-hand home purchases reflects strong demand driven by a shortage of new construction, favorable mortgage conditions and a preference for established locations. Although prices have risen considerably in recent years, forecasts point to more moderate growth in 2025.
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