The average mortgage value in Spain has surged by 10% to almost €170,000 amid booming house prices, with the Balearic Islands leading at over €300,000. Explore the latest trends and regional differences in Spain’s mortgage and housing market for 2025.
Spain’s housing market is undergoing a historic boom, triggering a sharp increase in the average mortgage value in Spain. Recent data for the first half of the year reveals a marked rise in mortgage amounts granted by banks, reflecting not only record-breaking demand for property but also a relentless surge in house prices, particularly in key tourist and urban regions.
Record-Breaking Mortgage Levels in Spain
In the first six months of the year, Spanish banks issued a total of 243,257 new home loans—figures not seen since 2011. According to the National Institute of Statistics, this surge represents a remarkable comeback for the mortgage sector. But what truly stands out is the scale of the average mortgage value in Spain, which reached nearly 170,000 euros by June, up from 152,233 euros in January—a robust 10.6% increase in just half a year.
This surge also means that in the month of June alone, banks lent 1,249 million euros more than in January, underlining a sharp escalation in both housing demand and property values.
Regional Disparities: Where Are Mortgages the Highest?
The Balearic Islands Lead the Pack
Regionally, the Balearic Islands top the charts for the highest average mortgage value in Spain, with an average home loan of 303,500 euros. This wealthy, tourism-driven province continues to set the pace, outstripping the national average by a considerable margin.
Other high-value regions include:
- Madrid: Over 290,000 euros
- Malaga: Nearly 204,000 euros
- Barcelona: Almost 198,000 euros
- Cádiz: About 174,500 euros
In these areas, buyers need substantial financial means. For instance, a 300,000 euro mortgage typically requires a net monthly income above 3,000 euros (assuming a 30-year term at a 2.5% fixed interest rate, with monthly payments exceeding 1,000 euros and banks capping mortgage payments at 35% of household income).
Where Mortgage Amounts Are the Lowest
Conversely, Spain’s least expensive average mortgages are found in:
- Lugo: 78,000 euros
- Jaén: 83,500 euros
- Zamora, Cuenca, Cáceres: Around 87,000 euros
Other provinces with sub-100,000 euro averages include Ourense, León, Ciudad Real, Castellón, Badajoz, and Palencia—reflecting relatively stagnant property markets and less buyer competition.
Which Provinces Saw the Largest Increases in Mortgage Value?
- Cádiz: Leads with a staggering 42% year-on-year increase (from 122,835 to 174,659 euros)
- Ávila: Up by 29%
- Madrid: Increase of 25%
- Ceuta: 23%
- Teruel: 22%
- Álava and Lleida: 21%
- Tenerife: 20%
Double-digit growth was also noted in a wide selection of provinces, from Huelva and Soria to Barcelona and Valencia, reflecting broader momentum in Spain’s property market.
Declines in Mortgage Value: Not All Provinces Are Rising
Despite the nationwide boom, some provinces experienced falling average mortgage amounts. These included Burgos, La Rioja, Tarragona, Ourense, Girona, Segovia, Lugo, Asturias, Castellón, Vizcaya, Zamora, and Murcia. The biggest declines occurred in Jaén (-21%), Córdoba (-14%), Guipúzcoa (-13%), Cuenca (-9%) and Granada (-8%).
What’s Driving the Spike in Spain’s Average Mortgage Value?
The surging average mortgage value in Spain is a reflection of:
- Escalating House Prices: Property values keep hitting new highs, especially in regions with strong demand from both local and foreign buyers.
- Increased Loan Demand: Record numbers of home purchases and mortgages granted as consumer confidence rebounds.
- Financial Requirements: Buyers increasingly need higher incomes and savings, especially in major urban and coastal areas.
- Regional Market Dynamics: Some areas, particularly in rural Spain, remain less expensive due to lower demand and reduced economic activity.
Is Now a Good Time to Get a Mortgage in Spain?
If you’re considering buying a home, keeping track of the average mortgage value in Spain is more important than ever. While regions like the Balearic Islands, Madrid, and Barcelona are leading the charge with high loans and steeper requirements, buyers on a tighter budget may find more accessible opportunities in provinces like Lugo or Jaén.
As the housing market remains vibrant and competitive throughout 2024, staying informed about both national trends and regional disparities will be crucial for anyone planning to purchase property in Spain.
