Every summer brings new opportunities in the real estate market: different regions, different regulatory environments, new forms of investment. The summer of 2025 is a very exciting time: Hungary's real estate market has entered a new phase, while Spain shines on the horizon as a great opportunity. We will now talk about Spanish property investment - regardless of how you think about the opportunities in your home country.

The Hungarian market is "soft comeback → stable indicators"

The Hungarian property market continues to provide a stable base. Indeed, in recent months, we have seen some increased activity - partly due to the changes in government bond rates in the spring - but this has not crashed anything, nor caused a crisis: just a slow shift towards a slightly more dynamic medium. The changes have mainly been in the way savings have moved, but the fundamentals have remained the same: a considered, long-term decision is needed before any purchase.

The Spanish situation: now really remarkable

Economic and demographic environment

By 2025, Spain's economy has regained its agility - it is set for more stable growth in the EU. According to IMF data, GDP growth will be around 2-2.5%, which is favourable for investment. Demographics are also favourable: young families and professionals are being joined by a growing number of digital nomads who are choosing a more flexible, international lifestyle.

Mortgage rates and financing conditions

Spanish mortgage interest rates have stabilised at around 3-3.5% by 2025, which is very favourable by European standards. This could be particularly important for those who have borrowing as a motto, which is why many are now choosing neighbouring euro-zone areas for their instalment projects.

Which regions should you look at now?

Costa del Sol - coastal and inland

This is an exciting area for a number of reasons: the coastal setting makes it a more likeable location for longer lets and even seasonal rental demand is strong.

• Marbella's excellence and exclusive properties - villas, luxury apartments that are constantly increasing in value.
• Málaga's urban environment, with infrastructure - airport, rail, roads - less seasonal volatility.
• Mediterranean climate + lifestyle - it's no longer just an investment, it's a lifestyle.

Madrid - the bustling metropolis

Spain's capital is not only a political centre, but also an economic one.

• Districts such as Chamberí or Salamanca - premium urban apartments, unbroken rental demand.
• Infrastructure, office developments - year on year, the labour market and with it the value of central city real estate is growing.
• Investment sales - alternative to higher yielding coastal properties.

Emerging areas: Valencia and Murcia

Zones with local characteristics, lower prices but growing potential.

• Young population, lower entry threshold - great opportunities for yield-oriented investors.
• Infrastructure developments - motorways, airports, seaports - these factors will generate longer-term price growth.

Balearic and Canary Islands - seasonal boom

High price levels but in return extreme rental yield potential and premium lifestyle.

• Ibiza, Mallorca extreme price level - seasonal mainly summer: extra income from short term rentals.
• Legally regulated, tourist based networks - quality rental, with higher profits at entry threshold.

Investment objectives and strategic considerations

Priority: longer-term capital growth

• Costa del Sol or Madrid prime residential - amortisation low, appreciation high.
• As a medium-term (5-10 years) investment: no rush to sell, so maximum return can be achieved.

Regular rental yield: long term vs. seasonal

• Long-term tenants (students, families) - stable, predictable returns.
• Seasonal rentals (tourism) - short but high returns in peak season.

Diversification: more regions + more types

• Worth building a portfolio - apartment on Costa del Sol, even city apartment in Madrid, maybe rural property in Murcia.
• This reduces the volatility of a single market, while increasing the stability of the whole system.

Legal and fiscal issues

Buying situation in the community

Buying property as an EU citizen or digital nomad can make the process quicker and easier - but you should also be aware of the proposed partial regulatory changes. The Golden Visa scheme has not been operational since May 2025, but there are alternatives.

Airbnb and short-term rental regulation

• Short-term rentals have become more regulated in several regions: permits, community contributions, tourist fees.
• Still: in big cities and high-traffic areas, it is possible to work with specialised companies who are compliant - professional training is available.

Tax and transaction costs

• In Spain, around 10-12% tax and agency fees are added to the purchase price.
• It is worth working with a local accountant or tax adviser - this will minimise income tax and ensure correct administration.

How to prepare for investing?

Define your goal!

Capital gains, rental income or master lifestyle (use + profit) - choose your region and property type accordingly.

Create a financial model

• Calculate the permanent expense/income side (taxes, maintenance, condo fees!).
• Use a financial consultant: credit, financing or cash flow models can help you make a more precise decision.

Setting up a local team

• Real estate agent, lawyer, accountant - all important, as knowledge of local regulations is essential.
• Communicate in Spanish or through a professional interpreter - fewer misunderstandings and cheaper to deliver.

Site visit + fieldwork

• If possible, visit Spain; experience the atmosphere and conditions of the city.
• While you're travelling, check out the transport and utilities - these will affect the stability of your income in the long run.

Summary - through Hungarian eyes

For the Hungarian investor in 2025, the Hungarian market will continue to offer an expandable, stable return structure - whether in the form of new build or second-hand property. At the same time, Spain - with its favourable financing, international tourist flows, and variety of diversified regions and types - could be the perfect complement for those looking to broaden their portfolio, especially when seeking investment alternatives within the Eurozone.

Closing thoughts

• Don't give up on anything - the potential in the Hungarian market remains.
• Broaden your horizons - Spain is now an ideal location if you are looking for rental or market gains.
• Strategic portfolio - it's how you combine the different points that really matters.
• Clear and transparent - get started legally and financially prepared.