Buying a home is one of the most important financial decisions, and determining the right time depends on several factors: the housing market, interest rates, the global economy and your personal circumstances. In this analysis, we evaluate current trends and what could influence your decision.
1. Evolution of the real estate market in 2025
Price trend
In 2025, housing prices show relative stability in most regions, with moderate increases in large cities such as Madrid and Barcelona. However, in peripheral and rural areas, prices have remained stable or even declined slightly, driven by lower demand.
- Large cities: Increases of between 3% and 5%.
- Peripheral zones: Stagnant or slightly falling prices.
Impact of supply and demand
Supply remains limited, especially in urban areas, while demand remains solid, driven by improved employment and the search for larger properties due to changes in post-pandemic preferences.
2. Interest rates and their influence on mortgages
Euribor in decline
The Euribor, the benchmark index for variable mortgages, has experienced a decline in 2024 and is expected to continue falling in 2025. This has eased variable mortgage payments and created a more favorable environment for buyers.
- Variable mortgages: Lower short-term rates.
- Fixed mortgages: Although less attractive than in previous years, they continue to offer long-term stability.
3. General economic factors
Controlled inflation
Inflation, which was a major challenge in previous years, is under control in 2025, allowing households to maintain more stable purchasing power. This facilitates financial planning for the purchase of a home.
Tax policies and subsidies
In 2025, young buyer grants and subsidy programs continue in certain autonomous communities. These initiatives can reduce initial acquisition costs.
4. Advantages of buying a home in 2025
a) Good time for variable mortgages
With the Euribor falling and the easing of monetary policies by the European Central Bank, variable mortgages are more attractive, offering lower initial payments.
b) Growing demand in peripheral areas
Interest in homes in areas further away from urban centers continues to increase, which could allow you to find opportunities at competitive prices.
c) Rental protection
With inflation under control, buying a home can protect you against possible increases in rental prices, especially in large cities.
5. Disadvantages of buying a home in 2025
a) Limited supply
Supply shortages in key urban areas can make it difficult to find a home that fits your needs and budget.
b) Economic uncertainty
Although economic forecasts are positive, there is always the risk of unforeseen changes that could affect the real estate market and interest rates.
c) High initial costs
The savings required to cover the down payment (20-30% of the home price) and additional expenses (10-12%) remains a barrier for many buyers.
6. Is it better to buy or wait?
The decision to buy or wait will depend on your personal situation and your long-term goals:
When is it best to buy?
- If you have sufficient savings to cover the down payment and associated expenses.
- If you find a property that fits your needs and budget.
- If you prefer variable mortgages and are willing to assume some risk in case interest rates rise again.
When is it better to wait?
- If you do not have the necessary savings.
- If the local market shows signs of overheating or inflated prices.
- Whether you prefer more stability in interest rates or more clarity on future economic policies.
7. Tips to make the best decision
- Evaluate your financial capacity: Analyze your income, savings and expenses to determine how much you can afford to spend on housing without compromising your financial stability.
- Research the local market: Compare prices in the area where you want to buy and consider short- and long-term trends.
- Consult with experts: A real estate agent or mortgage consultant can help you identify opportunities and negotiate favorable terms.
- Take advantage of available subsidies: Find out about subsidy programs and tax benefits in your autonomous community.
- Consider the type of mortgage: Evaluate whether you prefer the stability of a fixed mortgage or the lower payments of a variable mortgage.
Conclusion
2025 presents a favorable environment for home buying, especially for those looking to take advantage of variable mortgages with reduced down payments. However, the success of this decision will depend on your ability to save, your personal goals and a careful evaluation of the local market.
