Spain Residential Real Estate Market Report and Forecast 2024-2032

Spain Residential Real Estate Market Outlook

The Spain residential real estate market size reached approximately USD 165.79 billion in 2023. The market is projected to grow at a CAGR of 5.8% between 2024 and 2032, reaching a value of around USD 276.69 billion by 2032.

Key Trends in the Market

Residential real estate refers to buildings used for residential purposes. These are standalone houses designed to accommodate a single family or household. They typically have their own private yards or outdoor spaces. Residential real estate can be bought or rented, and it can serve as the primary residence for individuals or families.

• Spain, like many other developed nations, is rapidly urbanising to accommodate its growing population. Major cities such as Madrid, Barcelona, Valencia, and Seville are following this trend, as they continue to attract a significant portion of the population due to economic opportunities, cultural amenities, and access to services.

• The introduction of new laws such as implementing changes such as extended rental contracts, increased regulation of rental prices, and improved protection for tenants against eviction is expected to significantly propel the Spain residential real estate market demand. Additionally, initiatives to incentivise energy-efficient construction and promote sustainable urban development are influencing the types of properties being built.

• Spain has consistently been one of the world's top tourist destinations, favouring the Spain residential real estate market growth. Tourist-driven areas along the coasts, such as the Costa del Sol and the Balearic Islands, have seen a surge in demand for vacation properties. This trend is further fuelled by the rise of short-term rental platforms like Airbnb, which offer an attractive alternative to traditional hotels.

Market Analysis

The Spain residential real estate market segmentation, based on type, includes villas and landed houses, apartments, and condominiums. The major regional markets for residential real estate in Spain are Andalusia, Catalonia, Madrid, Valencian Community, and the rest of Spain.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Spain residential real estate market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Neinor Homes S.A

• Aelca Desarrollos Inmobiliarios, S.L.

• Lusa Realty S.L.

• Metrovacesa S.A.

• Vía Célere Desarrollos Inmobiliarios, S.A.

• Housfy Real Estate, SL

• Tritón Levante

• GG Homes

• Others

Market Share by Type

According to the Spain residential real estate market analysis, the demand for apartments is expected to surge during the forecast period owing to the population influx in Spain. Apartments offer a more space-efficient solution compared to standalone houses. They allow for higher population density in desirable urban locations.

Moreover, apartments tend to be more affordable than single-family homes, especially in prime urban locations where land costs are high.

Market Share by Region

Madrid is the largest city and a popular spot, which contributes to the growth of the Spain residential real estate market share in the coming years. One of the key factors enhancing this trend is the importance of Madrid as the financial and economic centre of Spain. It is the host of the headquarters of many major Spanish companies and multinational corporations. This economic strength creates a robust job market, attracting professionals and expats seeking career opportunities.

Competitive Landscape

Neinor Homes S.A. is one of the largest Spanish real estate development companies engaged in residential property development. The company is primarily focused on crafting and selling residential real estate, which encompasses a wide range of properties including apartments, townhouses, and various other types of homes.

Aelca Desarrollos Inmobiliarios, S.L. is a prominent real estate development company based in Spain. Established with a strong presence in the sector, Aelca specialises in the design, construction, and sales of residential properties, including townhouses and other types of homes.

Lusa Realty S.L. is a real estate company based in Spain. It specialises in property transactions, including sales, purchases, and rentals. With a dedicated team of experienced professionals, Lusa Realty aims to provide comprehensive real estate services to clients. Their expertise covers a diverse range of properties, from residential homes to commercial spaces.

Other key players in the Spain residential real estate market are Metrovacesa S.A., Vía Célere Desarrollos Inmobiliarios, S.A., Housfy Real Estate, SL, Tritón Levante, and GG Homes, among others.

Key Highlights of the Report