Housing Prices Near Bubble Highs: Second-Hand Property Records Its Highest Increase on Record, Rising by 18%

Housing prices in Spain are once again approaching bubble levels

Housing prices in Spain are going through one of the most delicate moments of the last few decades. According to the latest market data, second-hand housing prices rose by 18% year-on-year in October, the highest increase ever recorded in the historical series.

This sharp rise reflects an increasingly tense residential market, where demand is four times higher than available supply, pushing prices steadily upwards.

How much does it cost to buy a home in Spain today?

In October, the average price per square metre of second-hand housing in Spain reached €2,789/m². For a standard 80 m² property, this means:

• Current average price (October 2025): €223,129

• Average price one year ago (October 2024): €189,062

In just 12 months, the cost of buying a typical home has increased by more than €34,000, a rise that is becoming increasingly difficult for many households to absorb.

Experts warn: the Spanish housing market is under severe pressure

María Matos, Head of Research and spokesperson at Fotocasa, highlights the seriousness of the situation:

“The pace of housing price growth is worrying, as it is close to a 20% increase in just one year. Strong demand, far exceeding supply, continues to exert intense pressure on prices.”

At a national level, housing prices are now just 5.5% below the peak reached during the 2007 housing bubble, placing Spain in a historically significant scenario.

A sustained price increase throughout 2025

The 18% rise recorded in October is not an isolated figure. Throughout 2025, housing prices have repeatedly set new records:

• May: +14.8%

• June: +14.9%

• July: +15.9%

• August: +17.7%

• October: +18.0%

This sequence of consecutive increases confirms that market pressure is not easing, but intensifying month after month.

A two-speed housing market across Spanish regions

Price growth has not been uniform across the country. According to Fotocasa, the housing market is clearly moving at two different speeds.

Regions with price increases above 20%

Areas with strong population growth and high demand are experiencing unprecedented price rises, making housing affordability more difficult than ever:

• Basque Country

• Andalusia

• Region of Murcia

• Valencian Community

• Balearic Islands

All of these regions have reached record price growth levels for second-hand housing during 2025.

Regions reaching historic price highs

• Basque Country: reached its highest price level in October 2025, with steady increases throughout the year, peaking at +12.6%.

• Andalusia: recorded five consecutive historic highs in 2025, reaching +23.1% in August.

• Region of Murcia: posted record increases of up to +24.9%.

• Valencian Community: experienced historic rises close to 25%.

• Balearic Islands: recorded a peak increase of 25.8%, the highest in Spain.

What about the rest of Spain?

Other regions have also experienced significant price increases, although without reaching new historic highs:

• Madrid: +18.9%

• Canary Islands: +18.0%

• Catalonia: +12.5%

• Galicia: +11.6%

• Asturias: +21.0%

Meanwhile, regions such as Navarre, Castilla-La Mancha and Extremadura are seeing more moderate growth, although they previously recorded very high increases during the 2007 housing bubble.

Are we facing a new housing bubble?

The data points to a clear scenario: strong demand, insufficient supply and sustained price pressure. All of this places the Spanish housing market at a critical point, once again approaching the levels seen before the 2007 crash.

For both homeowners and buyers, understanding this context is essential to making informed decisions, especially in highly pressured urban markets such as Barcelona.