The Balearic Islands have surpassed €5,000/m²
The price of resale homes in Spain has seen a remarkable increase of 4% month-on-month and a staggering 14.8% year-on-year, reaching an average asking price of €2,635 per square metre this May, according to the latest Fotocasa Real Estate Index.
In the 20 years of analysis, May 2025 marks the first time that both monthly (4%) and annual (14.8%) price increases have reached such high levels simultaneously.
To put this into perspective: the 14.8% year-on-year rise equates to an increase of €341 per square metre. For a typical 80 m² apartment, this means buyers are now paying approximately €27,246 more than they would have one year ago.
“We are witnessing a historic moment in the Spanish property market. This is the sharpest increase we’ve recorded since the data series began, driven by unprecedented demand, more favourable mortgage conditions, and a significant rise in migration. At the same time, a structural lack of supply — hampered by challenges in the construction sector — is pushing prices higher. Over the past year, the average price per square metre has increased by €341, meaning that a standard 80 m² property now costs over €27,000 more than it did in 2024. This is an extraordinary jump in a very short period of time. Importantly, this is neither a temporary nor a localised trend — it is affecting 94% of provinces and 86% of municipalities, with eight regions recording double-digit growth,” said María Matos, Director of Research and Spokesperson at Fotocasa.
Year-on-Year Growth Doubles in 12 Months
Spain’s annual property price growth has nearly doubled, rising from 7.7% in May 2024 to 14.8% in May 2025. Over the past year, the average price per square metre has risen by €341 — from €2,294/m² in May 2024 to €2,635/m² today.
Regional Trends: Significant Growth Across Most of Spain
Looking at year-on-year changes by region, 16 out of 17 Spanish regions saw property prices increase in May 2025. Notably, eight regions recorded double-digit growth:
- Valencian Community: +28.3%
- Region of Murcia: +24.1%
- Balearic Islands: +20.9%
- Andalusia: +18.5%
- Madrid: +17.9%
- Canary Islands: +17.9%
- Asturias: +16.6%
- Cantabria: +15.5%
Navarra was the only region to post a year-on-year decline (-1.4%).
Most Expensive Regions
The Balearic Islands now lead the ranking, surpassing the €5,000/m² threshold for the first time (€5,028/m²), followed by:
- Madrid: €4,817/m²
- Basque Country: €3,476/m²
- Canary Islands: €3,108/m²
- Catalonia: €3,035/m²
- Andalusia: €2,509/m²
- Valencian Community: €2,407/m²
At the other end of the scale, Extremadura (€1,258/m²) and Castilla-La Mancha (€1,228/m²) remain the most affordable regions.
Provinces: 94% See Year-on-Year Price Increases
In May, 47 of Spain’s 50 provinces (94%) experienced year-on-year price growth. 22 provinces saw double-digit increases, including:
- Alicante: +27.1%
- Murcia: +24.1%
- Valencia: +21.2%
- Balearic Islands: +20.9%
- Castellón: +20.2%
- Santa Cruz de Tenerife: +18.2%
- Madrid: +17.9%
- Asturias: +16.6%
- Málaga: +15.2%
- Cantabria: +15.5%
Navarra (-1.4%), Ávila (-0.9%), and Jaén (-0.8%) were the only provinces to register price declines.
Most Expensive Provinces
Several provinces have now surpassed the €4,000/m² mark. They include Balearic Islands (€5,028/m²), Madrid (€4,817/m²), Málaga (€4,149/m²), Gipuzkoa (€4,008/m²).
At the opposite end, Ciudad Real (€968/m²) and Jaén (€996/m²) remain the most affordable provinces.
