2025 saw a strong market get stronger
The evolution of the Spanish housing market in 2025 has been marked by unprecedented activity, driven by highly favourable mortgage conditions and exceptionally strong buyer demand. As a result, 2025 is shaping up to be one of the most dynamic years of the past decade. According to available data, property transactions are expected to exceed 700,000 sales, making it the strongest year since 2007 and confirming the continuation of an expansionary market cycle that has been in place since 2021.
At the same time, rising property prices have left a significant mark on 2025, with accumulated increases reaching levels never seen before over such a short period. Price growth has affected all autonomous communities and the majority of provincial capitals, with widespread increases pushing many areas to historic highs.
This momentum has been reinforced by the consolidation of a mortgage cycle characterised by low interest rates and improved access to financing, with more than 470,000 mortgage loans granted during the year. These conditions have reactivated a substantial portion of demand that had remained on hold during years of uncertainty, injecting renewed energy into the property market.
However, this strong performance coexists with significant structural challenges. The supply of competitively priced housing remains limited, creating a major imbalance between supply and demand. This pressure continues to push prices upward and restrict access to housing for large segments of the population. The rental market has also experienced severe strain, with extremely limited supply and rents reaching historic highs.
Looking ahead to 2026, property price growth is expected to continue, with forecasts suggesting that both purchase prices and rental values may reach simultaneous historic highs. This outlook highlights the growing need to address the structural imbalances of the market in order to improve affordability and long-term stability.
Property prices in Spain
The annual variation in house prices (December to December) in 2025 stands at 20.5%, representing the highest annual increase recorded (since 2005).
Since November 2020, year-on-year price variations have followed a clear upward trend. This marks a sharp contrast with previous periods of decline, the most pronounced of which occurred in June 2013 (-11.8%). Growth accelerated to 8.4% in December 2024 and intensified further throughout 2025, closing the year at a peak of 20.5% in December 2025.
Average price per square metre
By December 2025, the average price of second-hand housing reached €2,879/m², following more than three consecutive years with prices above €2,000/m². This represents a significant increase compared to December 2024 (€2,389/m²), with consistent month-on-month growth.
The historic peak was recorded in April 2007 at €2,952/m². With prices at €2,879/m² at the end of 2025, the market is now just 2.5% below its all-time high.
Property prices by autonomous community
In 2025, second-hand property prices increased in all autonomous communities, confirming a fully homogeneous national uptrend. The strongest annual price growth was recorded in the Region of Murcia (29.6%), followed by the Valencian Community (24.4%), Asturias (24.0%), Cantabria (22.9%), Andalusia (22.2%), Madrid (21.7%), and the Canary Islands (21.3%).
In terms of absolute prices, the Balearic Islands lead the ranking with €5,267/m², closely followed by Madrid at €5,206/m². Both regions exceed the €5,000/m² threshold and remain well above the national average. They are followed by the Basque Country, the Canary Islands, and Catalonia.
Five regions now exceed the national average price of €2,879/m²: the Balearic Islands, Madrid, the Basque Country, the Canary Islands, and Catalonia. The Balearic Islands stand 83% above the national average, while Madrid is 81% higher, underlining the growing regional disparities within the Spanish housing market.
