Spanish Real Estate Market Prices 2025
The Spanish real estate market is projected to maintain its upward trajectory in 2025, driven by robust international demand, limited supply, and Spain’s enduring appeal as a lifestyle destination.
The average price of finished housing (new and used) in Spain experienced an annual increase of 7.67% in the first quarter of 2025, reaching an average value of 1,905 €/m². This evolution in the cost of housing means that the average price of a 90 m² apartment in Spain stands at 171,482 €.
What is the opinion of experts on Spanish real estate market prices?
Experts agree that the Spanish real estate market will continue its upward trend in 2025, although with signs of moderation compared to previous years. Below are their main opinions and forecasts:
Key factors driving the market
Shortage of supply: The shortage of available housing, especially new construction, is one of the main causes of rising prices. The Bank of Spain estimates that between 600,000 and 1.5 million additional homes are needed to meet current demand.
Solid demand: Despite high prices, demand remains strong, especially in urban and coastal areas. Around 780,000 homes are expected to be sold in 2025, which would be the best year since 2007.
Favorable mortgage conditions: The European Central Bank‘s lower interest rates have made it easier to access mortgages, encouraging home purchases.
Price forecasts for 2025
BBVA Research forecasts nominal house price growth of 4.7% by 2025.
Bankinter estimates a 5% increase in housing prices in 2025, followed by a 3% increase in 2026.
Fotocasa anticipates a 7% increase, driven by tight supply and sustained demand.
Solvia Market View It projects growth of between 4% and 5%, highlighting high activity in sales.
Risks and warnings
Limited access for young people: Rising prices have made it difficult for young people to access housing, with market share falling from 35% to 30% in the last year.
Possible market overheating: Some experts, like Montse Cespedosa, warn that the market could become a “death trap” due to high prices and lack of supply.
Regional inequality: Price increases are not uniform across the country. Cities such as Valencia, Malaga, and Madrid have experienced increases of more than 20% in 2024, while other regions have shown more moderate growth.
What about the luxury real estate market in Spain 2026.
Spain’s luxury real estate market in 2026 is poised for continued growth, supported by strong international demand, limited supply, and evolving trends like branded residences and sustainable living. While regulatory changes may introduce new dynamics, the sector’s fundamentals suggest a resilient and attractive market for high-end property investors.
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Our thoughts about the market.
At LuxuryForSale.Properties we think that the Spanish real estate market in 2025 is characterized by sustained price growth, driven by robust demand and limited supply. Although a real estate bubble is not expected, difficulties in accessing the market for certain groups, especially young people, and regional disparities pose the challenges.
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