The Spanish property market continues its upward trajectory, with Madrid and Barcelona recording significant house price growth in the third quarter of 2025. According to the latest Residential Market Barometer by Gloval Analytics, both cities and their surrounding metropolitan areas are experiencing robust price increases, surpassing previous quarters and highlighting strong domestic demand amid limited housing supply.
Madrid: Prices Jump 19% Year-on-Year
Madrid’s residential market led the surge, with average property prices hitting €5,078 per square meter—a remarkable 19% rise compared to the same period last year, and up 4.6% from the previous quarter. The city’s metropolitan area also saw substantial growth, averaging €3,342 per square meter, marking a 16.3% year-on-year increase and a 5% uptick from the last quarter.
All municipalities in Madrid’s periphery posted year-on-year gains, most notably:
- Fuenlabrada (+25.9%)
- Alcorcón (+21.8%)
- Coslada (+21.6%)
- Leganés (+21.2%)
When it comes to absolute values, Pozuelo de Alarcón leads the suburbs with €4,826 per square meter, followed by Alcobendas (€4,322/m²) and Majadahonda (€4,283/m²). Quarterly growth was highest in Alcobendas (+6.8%), Tres Cantos (+6.6%), and Pozuelo de Alarcón (+6.5%).
Barcelona: Double-Digit Growth Continues
Barcelona mirrored Madrid’s upward trend, achieving an average price of €4,531 per square meter, up 15.2% year-on-year and 4.3% quarter-on-quarter. In the Barcelona metropolitan area, the average price reached €2,967 per square meter, with increases of 10.3% compared to 2024 and 3.4% since the previous quarter.
No metropolitan municipalities saw price declines, with standout year-on-year increases in:
- Esplugues de Llobregat (+17%)
- Badalona (+14.9%)
- Sant Adrià de Besòs (+12.7%)
- L’Hospitalet de Llobregat (+12.7%)
- Santa Coloma de Gramanet (+13.1%)
Sant Cugat del Vallès (€4,718/m²) and Sant Just Desvern (€4,093/m²) had the highest property prices, followed by Esplugues de Llobregat (€3,648/m²) and Sant Joan Despí (€3,114/m²).
Favorable Economic Conditions Support Housing Market
Overall economic indicators also paint a positive picture for Spain’s residential sector. National GDP grew by 2.8% in the third quarter, exceeding the Bank of Spain’s annual forecast of 2.6%. The unemployment rate stood at 11.45%, slightly higher than the same period last year (11.21%), but notably lower within Madrid (7.94%) and Barcelona (8.81%) metropolitan areas.
Key real estate metrics underline this growth:
- Household credit grants climbed 20.36% year-on-year.
- Property transactions rose 3.15% across Spain.
- The Euribor remained low, despite minor increases.
- Inflation was contained at 3% as of September.
What’s Driving the Boom?
Industry analysts point to strong local demand and a shortage of homes as the main drivers behind the steep price increases. With the Spanish economy exceeding growth expectations and property financing remaining accessible, the housing market in major urban centers shows no signs of slowing down.
Looking Ahead
As 2025 comes to a close, all eyes are on whether supply can catch up with demand in Madrid and Barcelona. For now, Spain’s leading cities continue to offer vibrant, fast-growing real estate markets—attracting residents, investors, and international buyers alike.
For more updates and detailed analysis on Spanish house prices, stay tuned to our property market news.
