Spain mortgage trends reveal a significant shift as more Spaniards are taking out larger home loans. This growing trend reflects changing economic conditions and evolving buyer preferences in the Spanish housing market.
In a remarkable turn of events, Spaniards have demonstrated an increasing propensity to secure larger mortgages for home purchases, as evidenced by a substantial 11.2% growth in home mortgages in 2024. This figure starkly contrasts with the previous year’s disheartening decline of 18%, culminating in a total of 423,761 loans. The average mortgage amount has also seen a notable uptick, reaching 145,673 euros—a 2.7% increase—marking the highest average since the pre-crisis era of 2007.
The data, meticulously compiled by the National Institute of Statistics (INE), suggests a renaissance in home buying, awakening from the slumber of the previous year. The surge in mortgage activity can be attributed, at least in part, to the more accommodating interest rate policies enacted by the European Central Bank (ECB) over the past year. This shift has catalyzed a significant influx of demand for housing, channeling a considerable portion of consumer interest towards property acquisition.
However, it is imperative to note that despite this resurgence, the total number of mortgages signed remains below the 464,000 recorded in 2022. The persistent escalation in housing prices across Spain has compelled borrowers to seek larger loans, with the total capital lent by financial institutions surging by 14% to an impressive 61,730 million euros. The average interest rate for new home mortgages has climbed to 3.25%, the highest observed since 2015, with variable-rate mortgages averaging 3.07% and fixed-rate mortgages at 3.42%.
A noteworthy trend is the shift in the composition of mortgage types; fixed-rate mortgages constituted 58.8% of the total, the lowest proportion since 2020, while variable-rate mortgages experienced a slight uptick to 41.2%, up from 40% in 2023. This indicates a growing appetite for the perceived flexibility of variable rates amidst fluctuating economic conditions.
Geographically, the increase in mortgage activity was widespread, with all autonomous communities reporting higher numbers than in 2023. Galicia led the charge with a remarkable 26.6% increase, followed closely by Navarre (21.2%), La Rioja (19%), and Asturias (17%). Conversely, the Canary Islands, Andalusia, and Murcia exhibited more modest growth rates of 4.1%, 7.2%, and 8.5%, respectively.
In terms of sheer volume, Andalusia emerged as the frontrunner in mortgage issuance, with 82,407 loans, followed by Catalonia (73,828), Madrid (70,339), and the Valencian Community (49,494). La Rioja, however, lagged significantly behind, with a mere 2,467 mortgages signed.
Moreover, the overall landscape of mortgage lending has shown resilience, with the total number of mortgages on both rural and urban properties rising by 9.7% to 544,721—marking the steepest increase since 2021 and a welcome rebound from the 18.4% decline witnessed in 2023. The total capital of mortgage loans granted across all property types increased by 10.9%, surpassing 91,352 million euros, while the average mortgage amount for all properties rose by 1.1% to 167,705 euros.
The Spanish mortgage market is experiencing a renaissance, characterized by increased borrowing, rising interest rates, and a notable shift in consumer preferences. As the landscape continues to evolve, it remains to be seen how these trends will shape the future of homeownership in Spain.
