Enrique Isla foresees great dynamism in the real estate market | El Confidencial

Enrique Isla, partner and head of Real Estate, foresees a promising real estate market, although factors such as regulation, taxation and the evolution of interest rates will set the tone for the coming months.

Law firms foresee a very dynamic 2025 in the real estate sector, with assets such as hotels, data centres, rental housing and shopping centres standing out. New residential modalities such as flex-living and co-living are also attracting attention, along with build to rent projects. A housing pact is expected to stabilise and accelerate the market, although the main threat remains in the slowdown in the decline of interest rates.

At the regulatory level, the reform of the Land Law is mentioned, which seeks to streamline urban development plans and increase the supply of housing. According to Isla, ‘The reform of the Land Law is essential to unblock and streamline urban development plans, eliminate bureaucracy and, ultimately, facilitate the generation of land to increase the supply of housing’.

On the other hand, the future of interest rates remains a major concern, as any rise could slow down real estate transactions. ‘The impact is already being felt in the first quarter with a slowdown in real estate transactions. These policies are generating uncertainty in the market, particularly with regard to the slowdown in US and European interest rate cut policies as a result of the possible increase in inflation due to protectionist tariff policies,’ comments the Real Estate partner.

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