Spain is increasingly becoming a country of heirs, a trend that is noticeably influencing its real estate market. In 2007, just 11% of homes that changed hands did so through inheritance. Fast forward to 2024, and that figure exceeded 19% . According to Fotocasa Research, an even more impressive statistic emerged: 16% of the entire Spanish real estate offer is comprised of homes passed down from family to family members, especially within the sale market.
These figures suggest new opportunities and challenges alike for the Spanish property sector.
The Weight of Inheritances
The percentage of inherited homes stands at 16% . Recently, Fotocasa Research conducted a survey to assess the impact of inheritances on the Spanish real estate market. The survey yielded some insightful results that highlight the current state of this market, heavily influenced by a housing shortage that struggles to meet demand. Inherited homes represent nearly a fifth of all available properties in a sector where supply and demand often misalign. This statistic aligns closely with data from the previous year (15%) and reflects a dip from the 18% peak observed during the pandemic.
More Sales than Rentals
This 16% figure paints a broad picture but masks certain nuances depending on the segment discussed—specifically, whether we are looking at sales or rentals. The inherited homes represent a higher percentage in the sales market compared to rentals. “Within segments, the weight of heirs in the sales market historically doubles that in the rental market. Heirs of inherited homes make up 23% of the supply in the purchase market, whereas this percentage drops to 11% in the rental arena,” explains María Matos , Director of Studies at Fotocasa. Both indicators reflect an increase over last year.
The Influence of Demographics
Matos notes that the growing prominence of inherited homes is closely linked to Spain’s demographic shifts . The aging population, particularly among Baby Boomers , coupled with a declining birth rate, contributes to this trend. This phenomenon is expected to create an unprecedented transfer of intergenerational wealth in the coming decade, impacting the market’s structure. “For every inherited house aimed at rental, we estimate that twice as many will be sold,” she adds.
Reasons for Selling versus Renting
Fotocasa also sought to understand why some heirs choose to sell rather than rent their inherited properties. A primary reason cited by 34% of respondents is related to personal motives . Others express hesitance about becoming landlords, with 32% indicating concerns about the responsibilities and potential defaults associated with rentals.
The decision to sell often stems from fears of tenant-related issues, such as property damage (21%) or a lack of tax benefits that could offset risks (21%). “These concerns have become more pronounced in recent years,” Matos observes, emphasizing the potential market impact.
Who are the Heirs?
According to the data gathered by Fotocasa, the typical heir entering the real estate market—whether through sales or rentals—is predominantly male (60% of cases) and about 54 years old . Typically, these individuals belong to the upper or middle class and usually reside with their partners and children. The regions of Madrid , Andalusia , and Catalonia feature prominently in these trends.
Additional Insights
Beyond Fotocasa’s findings, additional insights are provided by the National Statistics Institute (INE), which consistently compiles data on housing transactions across Spain. This includes various forms of property transfer— donations , sales, swaps, inheritances, and more.
Reflecting back to 2007, Spain recorded approximately 1.2 million property transactions, with 775,300 attributed to sales and 131,200 to inheritances, marking an 11.1% share. By last year, the landscape had shifted to 642,000 sales versus 201,000 inheritances, boosting the latter’s share to 19.3% .
As the Spanish real estate market grapples with significant demand and limited supply, the data indicates that inheritances are becoming an increasingly important factor. According to the Housing and Land Observatory, nearly 101,000 homes were completed in 2024 to address the supply-demand imbalance , though this figure remains insufficient compared to the pace of household creation indicated by the INE.
The growing impact of inheritances in the Spanish real estate landscape is undeniable. With figures reflecting a significant shift in property transactions, both buyers and sellers must navigate this evolving terrain prudently. As the market continues to adjust to demographic changes and socio-economic factors, it remains to be seen how these trends will shape the future of real estate in Spain.