![The growth of Spain's real estate market](https://storage2.spain-real.estate/static/files/kbgve/faq_480x320.jpg)
The growth of Spain's real estate market can be attributed to several factors, including increased demand amidst limited supply, particularly in the most popular cities. Other contributing factors include the steady recovery of the economy and an influx of foreign investments. Spanish real estate remains consistently popular among foreigners, further intensifying market pressure.
Currently, experts are observing even greater increases in both purchase and rental prices, not only in traditionally "expensive" cities like Madrid and Barcelona, but also in Palma and Málaga, which were previously considered more affordable. These changes indicate a broader trend of rising living costs in the country.
A notable aspect is the variation in percentage growth across different cities. Valencia and Málaga are currently experiencing the highest rates of growth in both rental prices and property values. The price increases in these regions reflect a heightened interest from investors, both local and international.
Analysts report that rising rental prices are largely due to shifts in the rental market. There has been an increase in short-term tourist rentals, which has created competition in the long-term rental market. This trend is particularly evident in Barcelona and Palma.
In these cities, demand for housing remains strong, even in the face of rising prices. This could be due to high expectations of future property value increases, allowing investors to profit from capital gains. Another possible reason is the perception of real estate as a reliable asset during periods of financial market instability.
Therefore, it is predicted that, given current trends, the Spanish real estate market will continue to grow in the coming months and years. Investors should take this trend into account when calculating expected returns to maximize their investments.