An increase of 13.1% in 2025

The housing market in Spain has become the epicenter of the economic and social debate in 2025. This year, prices have increased significantly, marking a trend that has not been seen for almost 20 years. The situation has generated concern among families and experts, since the combination of strong demand and increasingly limited supply has made buying a home more expensive. This poses considerable challenges, especially for young people seeking emancipation.

During the last years, the housing needs of Spaniards have increased significantly, while the supply of homes for sale has not managed to keep pace. This imbalance has meant that many households, even after the post-pandemic economic recovery, face an increasingly expensive and competitive market, which places an additional burden on young people who want to become independent.

Recent data from the Tinsa appraiser indicate that the average price of housing, both new and used, will close in 2025 with a 13.1% increase compared to the previous year, standing at approximately 2,091 euros per square meter. This increase is the most significant since 2006just before the outbreak of the global financial crisis. Without considering inflation, the real increase would be close to 10%.

Impact of Price Increases on the Market

Although the growth in prices has not been homogeneous throughout the country, in Madrid has been experienced interannual increase in prices greater than 20%. Regions like Valencia, Palma de Mallorca, Murcia and Alicante have also shown notable increases of over 14% during the same period. This drastic rebound has caused the average house price in Spain to be just 3.3% below the maximum levels reached in 2007, just before the previous real estate bubble.

The number of transactions in the sector has also shown notable performance in 2025, reaching close to 550,000 operationsof which around half were financed through mortgages, according to information from the General Council of Notaries. Although this denotes robust demand, there are signs that the growth rate of these transactions could be beginning to stabilize, suggesting that pressure on demand could begin to moderate.

Outlook for 2026: Will the Trend Continue?

Projections for the real estate market in 2026 indicate that prices could continue to rise, although at a more moderate pace, estimated between 5% and 10%. This would be driven by the persistence of limited supply and strong demand, despite stable interest rates and still favorable financing conditions.

The current market situation, marked by increasing prices and restricted supply, demands continuous attention. Spanish families, especially young people, continue to face significant challenges in their search for housing.

We hope that these new data and analyzes serve as a starting point for new debates and reflections on the state of housing in Spain. How will this trend affect future generations? Without a doubt a question worth discussing.

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