The real estate world is an ocean of information where everything changes quickly and without warning.

That’s why we help you stay up to date with the key real estate news you need to know.

1. EXPECTED RISE IN PROPERTY PRICES IN 2025

At the beginning of 2025, banks and real estate analysts warned that housing prices were expected to continue rising by between 4% and 5% throughout 2025.

Some of the main reasons mentioned include:

• Lower interest rates

• Strong foreign demand

• Limited supply of new developments

The market is entering a phase of moderate but sustained growth.

2. SPANISH REAL ESTATE MARKET ACCELERATES AFTER INTEREST RATE CUTS

A recently published sector report highlighted that the Spanish real estate market regained momentum during 2024 and early 2025.

This increase in demand is driven by factors such as economic growth, job creation, and the arrival of international residents.

However, a key challenge remains: the shortage of available housing supply.

The imbalance between supply and demand has now become the central issue shaping the sector.

3. KEY CHANGES IN THE HOUSING LAW (Impact on Rentals)

In 2023, important measures derived from the Housing Law were approved:

• Designation of high-pressure rental areas with rent caps

• New regulations for large property owners

• A new rent update index (no longer based on CPI)

• Tax incentives aimed at increasing housing supply

This reform became one of the most significant recent regulatory changes in the Spanish real estate market.