The price of homes for sale and for rent reaches record highs after rising by 10%.

Housing prices in Spain hit a historic record in June, according to the latest report from Idealista. The average rental cost stood at €14.6 per square meter, while the average sale price reached €2,438 per square meter. Spain thus led price increases in Southern Europe—which includes Italy and Portugal—with year-on-year rises of 9.7% for rentals and 14% for sales.

In comparison, the sales market grew by 8% in Portugal and 1.5% in Italy. For rentals, increases were more moderate: 3.5% in Portugal and 5.5% in Italy.

When comparing sale prices, Portugal came out on top with €2,898 per square meter, followed by Spain and then Italy, with €1,828. In the rental market, Portugal also had the highest average at €16.7 per square meter, while Italy reached €14.9 and Spain stood at €14.6.

The data also shows that in both Spain and Italy, rents have reached historic highs, despite being more affordable compared to Portugal. The rental increase was particularly notable in Spain, where prices rose 9.7% year-on-year, tripling Portugal’s pace and doubling Italy’s.

Madrid and Lisbon stand out as the most expensive cities

Idealista’s analysis highlights that Madrid experienced a 25% annual rise in housing prices, reaching €5,642 per square meter and setting a new record, coming close to Lisbon, which also hit its highest level at €5,769 with a 2.3% increase. These two cities lead the ranking of the most expensive urban markets in Southern Europe.

Milan (€5,104) and Barcelona (€4,920) followed. Barcelona also recorded 11.1% annual growth, surpassing Milan’s 2.4%, though Milan remains slightly below its historic high. Oporto rose 6% to €3,792, just below Portugal’s national average but establishing a new local record.

By contrast, Rome remains the city with the lowest prices among the main capitals, averaging €3,215 per square meter after a 2.9% annual increase, still 25% below its record high.

In terms of rentals, Barcelona had the highest rate (€23.9 per square meter per month), followed closely by Milan (€23.7), Lisbon (€22.2), and Madrid (€22). Rome (€18.4) and Oporto (€17.7) showed the most affordable rents among the major cities analyzed.

The sharpest annual rental increases occurred in Rome (+12%) and Madrid (+11%), although only in Madrid did rents surpass previous historic highs; Rome remained 1.5% below its peak. Lisbon and Oporto also broke records with softer rises of 3.1% and 2.7% respectively. Milan showed the smallest annual increase (2.6%) but remained close to its record, while Barcelona stood out with an 8.2% rise, now just 0.2% below its all-time high.

Palma and Valencia lead among tourist destinations

In markets with high tourist appeal, Palma de Mallorca hit a new milestone at €4,907 per square meter for sales, thanks to an 18.4% annual increase. Valencia, with €3,067 per square meter, posted the most significant rise (+20.1%) and also reached a record high, as did most Spanish provincial capitals except Las Palmas de Gran Canaria.

As for rentals, Palma (€18.3) and Málaga (€15.6) topped the ranking, with increases of 9.7% and 7.9% respectively. Valencia and Naples shared the same average rental price (€15.5 per square meter), although Valencia saw a 9.9% increase compared to Naples’ 1.5%.

Barcelona continues to rank among the cities with the highest housing and rental prices, strong annual increases, and high demand, consolidating its position as one of the standout urban hubs for those looking to invest or relocate in Southern Europe.