Access to residential properties in Spain is becoming increasingly challenging as the average cost of purchasing a home continues to rise. According to the latest report by consulting firm Gesvalt, the price of housing has surged by an average of €20,000 over the past year, making it more difficult for potential buyers to enter the market. Currently, the average sale price of housing in Spain stands at €1,886 per square meter, reflecting a substantial year-on-year increase of 13.8%.
Significant Price Increases Across the Board
The report highlights that the upward trend in property prices is evident across all autonomous communities in Spain. This growth is particularly notable when compared to the second quarter of 2025, where the average price was €1,816 per square meter. This represents a 3.9% increase in just a few months, confirming a consistent growth pattern in the real estate market, albeit at a slower pace than in previous periods.
To put this into perspective, acquiring a standard 90 square meter home now requires an investment of approximately €169,740, a sharp increase from €149,220 in the same quarter last year. This dramatic rise underscores the increasing financial burden on homebuyers as they seek to purchase properties in a competitive market.
Strong Demand Fuels Market Growth
Despite the challenges posed by rising prices, the real estate sector in Spain continues to demonstrate remarkable dynamism, driven by robust demand. Gesvalt’s report notes that both property sales and mortgage approvals are on the rise, indicating a healthy appetite for housing. Additionally, new building permits are also showing positive growth, with a year-on-year increase of 7.6% recorded in the third quarter of 2025.
This sustained demand suggests that even as prices climb, there remains a strong interest in homeownership, pushing developers to respond with new projects to meet the needs of buyers.
As Spain’s real estate market continues to experience significant price increases, potential homebuyers must navigate a landscape that is becoming increasingly difficult to access. With average prices on the rise and growing demand for properties, the market remains dynamic but poses challenges for those looking to purchase a home.
The ongoing increase in property values highlights the importance of strategic planning for prospective buyers, who may need to adjust their expectations or explore alternative housing options. As the market evolves, staying informed about trends and pricing will be crucial for anyone looking to invest in Spanish real estate.
