The Spanish residential market continues its price climb in 2025, consolidating a new growth cycle. According to the latest data published by the Ministry of Housing and Urban Agenda, the average price of privately owned housing in Spain stands at €2,093.5 per square meter, representing a 6.1% increase so far this year and a 10.4% year-on-year increase compared to the same period in 2024. In the last three months alone, the average cost of acquiring a property has grown by 3%, placing the real estate market at its third highest price since 2000, surpassed only by the peaks recorded in 2008, just before the bursting of the housing bubble.

The price of existing homes is leading the price increases, rising 10.5% to €2,083.1 per square meter, the highest figure since 2010. This surge reflects strong demand in a context of limited supply, stable interest rates, and increasing appeal for buyers seeking to protect their investment in a constantly appreciating market.

The most expensive regions to buy a home are, once again, Madrid, the Balearic Islands, and Catalonia. The Community of Madrid remains the most expensive market in the country, with an average price of €3,630.9 per square meter, representing a year-on-year increase of 13.5%. It is followed by the Balearic Islands, with €3,518.2 per square meter and a 13.2% increase, while Catalonia reaches €2,499.6 per square meter, 9.3% higher than a year ago. In fourth place is the Basque Country, with an average price of €2,792.5 per square meter and a 6.6% increase.

At the other end of the spectrum, Extremadura remains the most affordable region in Spain, with an average price of €919.9 per square meter, the only one below the €1,000 mark, despite registering a 2.4% increase. It is followed by Castilla-La Mancha, with €1,059.8 per square meter and a 9.8% increase, and Castilla y León, with €1,172.5 and an 8.3% year-on-year increase.

Cantabria stands out as the region that has seen the greatest increase in housing prices over the past year, with a 13.8% rise to €1,851.3 per square meter. The Valencian Community and the Community of Madrid also show strong increases, both at 13.5%, as do the Balearic Islands, at 13.2%. Regarding quarterly growth, the largest increases were also recorded in Madrid and Cantabria, at 4.4%, followed by Asturias, which grew by 3.9%, and Galicia, at 3.8%.

At the provincial level, Barcelona remains the most expensive province in the country, with an average price of €2,920.9 per square meter, 9.5% higher than the previous year. It is followed by Vizcaya, at €2,728.8 and a 7.2% increase, and Málaga, at €2,708.4 and a 12.8% increase, consolidating its position as the only Andalusian province that significantly exceeds the €2,000 per square meter mark. On the other hand, Ciudad Real is positioned as the most affordable province in Spain, with €747.4 per square meter, followed by Jaén, with €840.3, and Zamora, with €882.1.

In the analysis by municipality, Santa Eulalia del Río, in the Balearic Islands, remains the most expensive municipality with more than 25,000 inhabitants in Spain, with an average price of €6,042.6 per square meter, well above the regional averages. In contrast, Puertollano, in Ciudad Real, consolidates its position as the most affordable, with just €617 per square meter.

Alongside the rising market prices, international investment continues to bolster development activity. The funds BGO and Dazia Capital have announced a joint investment of €500 million to develop residential projects in Spain. This injection of foreign capital confirms the attractiveness of the national real estate market, boosting the construction of new homes, especially in the private housing and build-to-rent segments.

However, analysts agree that the main challenge remains the lack of supply. New construction is progressing at a slower pace than demand growth, which continues to put upward pressure on prices. This structural imbalance, combined with the country’s tourist appeal and economic stability, has made Spain one of the most dynamic and secure residential markets in Europe.

With a national average price already exceeding €2,093 per square meter and widespread increases across all autonomous communities, the Spanish real estate market is heading into the end of 2025 at record highs. Everything indicates that prices will continue to rise steadily as long as demand remains strong and supply fails to keep pace with the market, consolidating Spain as a priority destination for investment and residential development at the European level.