real estate supply shortage

Strong Demand and Limited Supply Spain’s real estate market in 2024-2025 shows strong demand and limited supply. Home prices are rising, especially for new-builds. This trend has prompted upward revisions in market forecasts. Housing Demand Trends After peaking in 2022 with 650,000 home sales, transactions dropped by 10% in 2023 due to higher interest rates. Despite this, sales stabilized in 2024 at 578,000—still above pre-pandemic levels. New home sales grew by 7.7%, while existing home sales declined. Domestic buyers for primary residences increased by 8.6%. Foreign demand remained steady, showing robust international interest. The 2025 demand outlook remains positive. Job