Real estate in Spain 2025: Trends, technology, and investment opportunities

Spain's property market in 2025 presents a compelling mix of opportunity, complexity, and transformation. weVLC, as a real estate investment leader in Valencia, shares the most relevant trends from SIMA 2025 in Madrid, along with our own insights into how investors can navigate and benefit from the evolving landscape.

Housing demand continues to rise, supply struggles to catch up

Spain faces a sustained imbalance between housing demand and supply:

• The country adds 300,000 new households annually, yet builds only about 100,000 homes.
• A growing population, shrinking household sizes, and immigration contribute to housing pressure.

This persistent gap drives prices up, especially in urban centers like Valencia, Barcelona, and Madrid.

Even though 11% of homes in Spain are officially vacant, many are not habitable or available in high-demand areas. The result: affordability continues to be one of the country's biggest structural challenges.

What this means for investors:

Real estate in Spain, particularly in secondary urban areas and surrounding towns, remains a strong investment. At weVLC, we increasingly focus on opportunities in suburban Valencia—where pricing is more accessible and rental yields are attractive, reaching 6.5% net direct return plus high expected indirect returns after value creation on the properties.

AI and PropTech are reshaping the industry

A McKinsey report forecasts AI will create a global impact of $180 billion in real estate.

Artificial intelligence is no longer a buzzword—it is becoming a core tool in real estate. Forward-thinking firms in Spain are now using AI to forecast demand hotspots, optimize property portfolios, and automate renovation cost estimation using video analysis. These digital-first approaches appeal to modern investors who prioritise efficiency, data, and returns over physical interaction with assets.

Spain is a growing hub in PropTech innovation, hosting 11% of all European PropTech companies. The Valencian Community ranks third after Madrid and Catalonia, making it an ideal location for collaboration and digital real estate ventures.

At weVLC:

We developed a proprietary AI-powered Property Management System (PMS) that automates lead management, maintenance coordination, and dynamic pricing, positioning us at the forefront of real estate technology adoption in Spain.

Shifting investor profiles and new opportunities

Another major shift is the broadening of investor profiles:

• Private capital from family offices and Latin American investors is increasingly active in the Spanish market.
• Institutional investors remain strong, but high-net-worth individuals and agile investors are reshaping project scopes and timelines.

Moreover, tokenization of real estate is emerging as a future trend. Platforms like Reental and Token City offer new ways to structure investment deals, although adoption is still early-stage.

weVLC's approach:

We specialize in agile co-investment models, from turnkey flips to flexible long-term rentals, tailored for both institutional partners and private investors seeking exposure to the Valencian real estate market.

Local insights from SIMA: what the data does not show

Conversations at SIMA also revealed subtle but telling signals:

• Many real estate agencies in Valencia have stopped listing new flats—sellers are pricing above market value, leading to a stagnation in transactions.
• Agencies are now shifting focus to suburban towns like Algemesí and Alzira, where affordability is stronger and the competition with other agents is lower.
• New digital tools—like IKEA's free design services and VR walk-throughs—are being tested by developers to enrich the buyer journey.

These hyperlocal insights are invaluable. At weVLC, we monitor micro-trends closely, allowing our investors to stay ahead of the curve in both acquisition and rental strategy.

Final thoughts

Real estate in Spain in 2025 is a paradox: high demand meets limited supply, traditional players coexist with disruptive innovators, and long-standing investor models are being challenged by agile, tech-savvy entrants.

Valencia, with its growing role in the PropTech scene and relative affordability compared to Madrid or Barcelona, is one of the most promising cities for real estate investment in Spain today.

weVLC is not just following the market—we are shaping it. If you are looking to invest smartly in Spanish real estate, discover what we are building in Valencia.