Purchasing real estate in Spain to obtain residency remains a popular immigration option for non-EU citizens. Known as the “Golden Visa” program, it allows foreigners to secure Spanish residency under specific investment conditions. However, Spain’s housing market and the Golden Visa program itself are undergoing significant changes in 2025. Let’s explore the current terms of the Golden Visa, property price trends, and market forecasts to help investors understand what to expect in 2025.
Spain’s Golden Visa Conditions in 2025
Spain’s Golden Visa program grants foreign investors residency in exchange for significant capital investments, with the most common route being real estate purchases valued at €500,000 or more. The law permits investing this sum in one or several properties, but the full €500,000 must be from personal funds (mortgage financing is allowed above this threshold). Alternative investment options include:
• Financial Assets: Investment of at least €1,000,000 in the Spanish economy (e.g., shares of Spanish companies or deposits in a Spanish bank).
• Government Bonds: Purchase of Spanish government bonds totaling €2,000,000 or more.
• Innovative Business: Launching a new innovative business in Spain that creates employment and meets significant innovation criteria (no fixed minimum investment required).
Investment thresholds are defined per applicant. For instance, if both spouses intend to obtain residency, each must individually meet the required investment amount. Since its inception in 2013, the program has attracted many affluent foreign investors. In 2023 alone, Russians acquired over 2,700 properties in Spain—the highest figure since 2014—with approximately 38% of these buyers specifically motivated by the Golden Visa program.
However, the Golden Visa program is nearing its end. According to recent legislative amendments, Spain will discontinue issuing new investor residencies starting April 2025. Previously issued visas will remain valid, and applications submitted before the changes take effect will be processed under the original rules. The Spanish government argues that Golden Visas encourage speculative real estate practices and negatively impact housing affordability, aligning with the EU’s gradual move away from such schemes. Investors still have a window of opportunity at the start of 2025, but future property-based residency will likely require new approaches.
Current Real Estate Prices in Spain
The Spanish real estate market currently exhibits record-high prices. As of November 2024, the average housing price reached approximately €2,244 per square meter—roughly 10.7% higher than the previous year, indicating substantial market growth in 2024.
However, prices vary significantly by region. Traditionally, Mediterranean coastal areas and major cities are the most expensive. For example, the top 5 regions in Spain by average housing prices (€/m², November 2024) are:
| Region | Average price, €/m² |
|---|---|
| Balearic Islands | €4,686 |
| Community of Madrid | €3,712 |
| Basque Country | €3,035 |
| Canary Islands | €2,789 |
| Catalonia | €2,474 |
Clearly, housing prices in popular regions far exceed the national average. These high prices present significant barriers for many buyers. Overall, since 2014, average housing costs in Spain have increased by 34%, outpacing the growth of household incomes. Consequently, housing affordability remains a critical issue for locals and foreigners alike.
Spain Real Estate Market Outlook for 2025
Experts anticipate several key trends for the Spanish property market in 2025:
• Moderate price growth: After a substantial increase (~+10% in 2024), price growth is expected to slow to approximately +4% in 2025. Although housing shortages will persist, reduced demand and improved mortgage conditions will partially mitigate upward price pressures.
• Declining Mortgage Rates: Mortgage interest rates are expected to decrease gradually. By the end of 2025, the Euribor index may fall to between 2% and 2.5%. More affordable loans could boost deferred demand, as buyers previously sidelined by higher rates return to the market.
• Reduced Foreign Demand: The cancellation of the Golden Visa program from April 2025 is likely to reduce foreign investor interest, as many non-EU citizens previously purchased real estate in exchange for residency. While the full impact is still uncertain, a decrease in buyers from outside the EU seems likely.
• Focus on Housing Affordability: Spanish authorities are taking measures to improve housing affordability. For instance, the Bono Alquiler Joven program, providing rental subsidies for youth, has been extended throughout 2025. This demonstrates the government’s commitment to addressing housing shortages and controlling price inflation.
Spanish Real Estate Investment Outlook for 2025
Thus, 2025 appears to be a turning point for Spain’s property market. Housing prices are expected to continue rising moderately, but investment conditions will evolve. Investors considering Spanish real estate for residency purposes should adapt to new realities, such as the termination of the Golden Visa program, potential reductions in foreign competition, and improved mortgage lending conditions. Spanish real estate remains an attractive asset; however, investing in 2025 will require a more cautious and strategic approach considering these evolving factors.
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- Email: info@nevestate.com
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