The Future of Second-Hand Housing: Where Is the Market Heading?
2025 is anticipated to be a year of high tension in the second-hand housing sector. Will this be the ideal time to buy or sell a property?
2025 is anticipated to be a year of high tension in the second-hand housing sector. Will this be the ideal time to buy or sell a property?
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With the rental market reaching historic price peaks and banks offering more attractive interest rates on mortgages, 2025 is anticipated to be a year of high tension in the second-hand housing sector. Will this be the ideal time to buy or sell a property? Below, iad Spain analyzes the market outlook.
Before delving into forecasts for 2025, it is crucial to review the data from 2024. How many homes were sold during this year?
According to the National Institute of Statistics (INE), as of September 2024, 467,865 properties were transferred, and it is estimated that by the end of the year, over 600,000 transactions will have been recorded, surpassing the 586,913 operations registered in 2023.
Of these figures, 372,746 correspond to second-hand homes, with a projection close to 500,000 transactions by year-end.
According to the Real Estate Registry Statistics from the College of Registrars, the average price of housing in the third quarter of 2024 was €2,114/m². Used homes had a slightly lower price, €2,080/m², compared to new builds, which reached €2,254/m².
In practical terms, a used home of 80 m² has an average price of €166,400, while a similar newly built property rises to €180,320.
Projections point to moderate growth of between 2% and 3% in the number of transactions in 2025. This will be driven by:
“The demand driven by housing shortages and improved mortgage conditions is causing price increases that will be unsustainable for many buyers in the medium term, slowing the market despite high demand.” – Esteve Garcia-Ossorio, Head of Network Training at iad Spain.
In many cases, the monthly mortgage payment is lower than rental costs, especially in certain locations. With rental prices on the rise, more people are expected to opt for homeownership as a stable and affordable long-term alternative.
This trend could intensify in areas where the cost difference between renting and buying is significant, attracting buyers seeking stability over the volatility of the rental market.
The European Central Bank (ECB) has begun lowering interest rates, bringing them to around 2.5% by April 2025. This will have a direct impact on:
With more accessible financing, more households will be able to achieve homeownership.
The limited supply of new builds and their high prices consolidate second-hand housing as the most viable option for most buyers.
In 2024, second-hand housing prices rose by 1.2% quarterly and 9.5% annually, reaching €2,355/m², according to Fotocasa.
The shortage of supply, especially in urban areas, will continue to push prices upward.
Regions like the Balearic Islands (€4,428/m²) and Madrid (€4,267/m²) lead in prices. In contrast, regions like Extremadura (€1,231/m²) are more affordable.
Cities like Lugo (+8.2%) and Oviedo (+6.5%) led quarterly increases in 2024. Identifying these trends could be key to attracting clients.
The second-hand housing market in 2025 offers significant opportunities for real estate agents. With favorable mortgage conditions, high demand, and rising prices, agents can position themselves as key guides for buyers seeking stability and value in a competitive market.
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