The price of housing in Spain surged by 12.7% between June 2024 and June 2025, according to the latest data from the House Price Index (HPI) published by the National Statistics Institute (INE).
This marks the second-largest annual increase since the start of the historical series, only surpassed by the first quarter of 2007 — right before the burst of Spain’s property bubble.
Second-Hand Homes Lead Price Growth
Resale properties, which account for around 80% of all home sales in Spain, continue to drive the market. Prices have now posted 45 consecutive quarters of annual growth, reaching their highest quarterly rise in a decade.
In contrast, newly built homes have shown more stability, although they still record year-on-year gains above 12%, just slightly lower than in the previous quarter.
During the last quarter, the average housing price rose 4%, compared to 3.5% in the first three months of the year.
Breakdown by property type:
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New builds: +2.6% (down from +5.5% the previous quarter).
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Second-hand homes: +4.2% (up from +3.2%), marking the sharpest quarterly growth in ten years.
Murcia, Aragón and La Rioja Record the Highest Increases
All Spanish regions and both autonomous cities (Ceuta and Melilla) recorded double-digit housing price growth, though regional differences persist.
The strongest annual increases were seen in:
Meanwhile, the most moderate increases occurred in:
Experts: Strong Demand Means No Price Drops Ahead
According to María Matos, Head of Research at Fotocasa, “the sharp rise in housing prices is the result of strong demand, favorable mortgage conditions, and a very limited supply.”
Matos adds that the decline in the Euribor and improved financing options “have brought back many buyers who had been priced out of the market. In many cases, it is now cheaper to buy than to rent.”
The Spanish Federation of Real Estate Associations describes the situation as a nationwide upward trend, though it foresees a possible stabilization:
“We expect prices to level off once they reach the limits of salaries and household purchasing power, at which point the market will self-correct.”
By contrast, Francisco Iñareta, spokesperson for Idealista, believes that strong demand and shrinking supply will keep pushing prices higher:
“The market shows no signs of correction. Over the last 12 months, the number of homes for sale in Spain has fallen by 20%, which continues to fuel price growth.”
Housing Prices Have Tripled Since Their 2014 Low
Since the start of the INE’s statistical series in 2007, housing prices in Spain have risen by 22.1% overall.
Following the financial crisis, the market saw a 34.8% drop until March 2014, when prices hit their lowest historical point.
Since then, housing values have recorded an 87% rebound, nearly three times higher than the accumulated inflation over the same period (27%), according to INE data.
Outlook for Spain’s Housing Market in 2025
With strong buyer demand, stable interest rates, and limited housing supply, experts agree that Spanish housing prices will continue to rise throughout 2025.
Despite efforts to boost construction and increase housing availability, affordability remains one of the biggest challenges for Spain’s real estate market.
