International Buyers

Real estate market trends over the years

03 FEB 2025
READING TIME:  5  Minutes

The real estate market continues to evolve rapidly and 2025 will be no exception. Economic, social and technological factors are shaping a new landscape in the housing sector. Below, we present the main real estate trends for 2025, followed by a brief review of what has marked the sector in recent years.

Smart and sustainable homes: the future of the home

The concept of smart and sustainable housing will be the main focus in 2025. Demand for homes equipped with advanced home automation technology, energy efficiency and sustainable materials will reach new levels. More and more people will look for properties that minimise environmental impact and maximise comfort. Solar panels , water recovery systems and energy-efficient appliances will be common features in new-build homes.

Green mortgages will become established as an attractive option, offering better conditions to those who invest in this type of sustainable property. Government incentives and European funds , such as Next Generation , will continue to promote the energy rehabilitation of old homes, promoting a more efficient and environmentally friendly housing stock.

Multifunctional homes: the rise of teleworking

Remote working will not only continue, but by 2025 it will be an established norm in many sectors. This will lead people to look for homes that offer multifunctional spaces , adapted for both personal and professional life. Well-equipped home office areas , with good lighting and connectivity, will be a must for buyers and renters.
Furthermore, flexible working conditions will lead many families to choose to move to quieter locations, away from urban centres, where they can enjoy a better quality of life without sacrificing productivity.

Rents will continue to rise, but with a shift towards affordability

Although rental prices have risen in recent years, by 2025 public policies and real estate developments are expected to focus more on making renting more accessible and affordable . The construction of social housing and tax incentives for owners who rent out their homes will help stabilise the rental market, especially in large cities.
Digital rental platforms and Proptech will continue to facilitate rental management and improve the user experience with virtual viewing options and faster, more efficient contracts.

Price adjustment in large cities and boom in peripheral areas

In large cities, prices will continue to stabilise or even fall in some areas due to market growth in peripheral areas. Peripheries and satellite towns will become increasingly attractive, not only because of more affordable prices, but also because of the quality of life they offer compared to densely populated urban centres.

Previous Real Estate Trends

Real estate market trends in 2022

2022 was a year marked by rising interest rates and the Euribor, which made mortgages significantly more expensive. The rise in financing costs pushed many buyers to opt for mixed mortgages, which combine a fixed rate at the beginning and a variable rate later. Second-hand homes continued to be in high demand, due to the lack of new construction supply, and energy improvements began to be implemented in many homes thanks to Next Generation funds.

Real estate market trends in 2023

In 2023, mortgage prices continued to rise due to the rise in the Euribor, although more moderately than in 2022. Sustainability and energy retrofits played an important role, driven by tax breaks and subsidies. Green mortgages began to gain popularity, making it easier to buy sustainable homes. Rents remained high due to a shortage of supply, while peripheral areas began to gain appeal due to their better value for money.

Real estate market trends in 2024

By 2024, smart homes and multi-functional homes were the focus. The trend towards sustainability was consolidated, with more and more homeowners looking to improve the energy efficiency of their homes, using grants for sustainable renovations. In terms of financing, fixed and mixed-rate mortgages remained attractive to many buyers, while property prices in peripheral areas continued to rise due to demand for larger and quieter spaces.

The real estate market in 2025 will be characterised by a demand for smart and sustainable housing , with multifunctional homes adapted to teleworking. Renting will remain important, but with a focus on affordability, while peripheral areas will gain popularity due to their better quality of life and lower prices. Looking back, trends from previous years have laid the groundwork for this future, especially in terms of the adoption of technologies, sustainability and new lifestyles that prioritise well-being and efficiency.

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