Spain’s perennial global appeal for tourism and for residency will likely continue for many years to come. The market’s strong fundamentals, robust – if undersupplied – housing markets, culture, climate, and infrastructure make the country a top destination for permanent residents and second-home buyers.

1. In Madrid, the outlook remains positive, with prime property prices continuing their upward trend. The market is notably influenced by a high level of interest from Latin American buyers and domestic buyers are in the city’s prime areas. This sustained demand underscores Madrid’s appeal as a top destination for high-end real estate investment.
   
   
2. Barcelona’s market is expected to maintain its current trajectory, characterised by low supply and rising price pressures. The limited availability of properties continues to support price increases, reflecting the city’s attractiveness and the high demand for its unique lifestyle and amenities.
   
   
3. International buyers will remain crucial to the prime and mainstream Spanish housing market, although domestic buyers will continue to dominate. The constrained supply in many areas means prices are likely to stay elevated, presenting opportunities for developers to introduce new stock into these key markets.
   
   
4. Even with strong residential price growth, Spain still represents considerable value in a global context. Over the coming years, it is likely that international buyers will continue to recognise this and look to purchase property in Spain.
   
   
5. In a higher interest rate environment, though rates are forecast to decrease slightly over the coming year, we expect that the rental market will continue to outperform residential price growth across the Spanish prime and mainstream residential markets.
   
   

_{Read the articles within Savills Spotlight on Spain report below}