Spain’s real estate prices soar 12.7% year-on-year, reaching levels last seen before the property bubble. INE data reveals strong gains, especially in second-hand housing, as low supply fuels market tension. Discover the latest trends driving Spain’s property boom.
Spain Real Estate Prices in 2025: House Prices Reach Pre-Bubble Highs With a 12.7% Yearly Surge
The Spanish property market continues to heat up in 2025, with house prices recording their sharpest rise since the housing boom of the mid-2000s. According to the National Institute of Statistics (INE), the price of free housing (residential properties not subject to official protection) soared by 12.7% year-on-year in the second quarter, reaching levels that have not been seen since 2007.
Market Tension: Demand Outpaces Supply
The extraordinary rise in Spain’s real estate prices is being driven by a classic market imbalance: demand significantly outstripping available supply. Buyers are flocking to acquire property, but with not enough listings to meet this demand, prices have been forced higher for six consecutive quarters. This quarter’s 12.7% increase is even higher than the first quarter’s rate—and marks 45 consecutive quarters of year-on-year price growth.
Second-Hand Housing Leads the Rise
A closer look at the data shows second-hand housing as the standout driver of rising prices.
- Second-hand homes saw prices jump 12.8% year-on-year—the largest increase in 18 years, since the first quarter of 2007.
- New housing prices grew by 12.1% year-on-year, only slightly less than in previous quarters.
On a quarterly basis, second-hand home prices rose by 4.2%, the highest since Q2 2015. In contrast, new homes saw a 2.6% quarterly increase, down from the previous quarter’s brisk 5.5%.
All Regions See Double-Digit Growth
What sets this year apart is just how widespread these increases are. Every Spanish region—including the two autonomous cities—experienced double-digit annual price growth for free housing. The biggest surges were seen in:
- Murcia: +14.6%
- Aragon & La Rioja: +13.7%
- Castilla y León & Andalusia: +13.6%
- Asturias: +13.5%
Even the more ‘moderate’ markets reported historic price rises:
- Cantabria: +10.8%
- Castilla-La Mancha: +11.3%
- Canary Islands & Catalonia: +11.6%
- Balearic Islands: +11.7%
Quarterly Trends Confirm Market Momentum
The Q2 data shows a quarterly price increase of 4% for free housing, the highest since mid-2015. The market continues to show resilience, with price growth accelerating in both new and resale housing segments.
Outlook: What Can Buyers and Sellers Expect?
The Spanish real estate market is experiencing intense upward pressure, a dynamic likely to continue as long as supply struggles to keep pace with demand. With prices reaching or even exceeding pre-financial crisis highs, both local and international buyers remain active, especially in sought-after regions.
Sellers can expect a vibrant market environment, but buyers should prepare for competitive bidding and rapidly rising values. Would-be investors should keep an eye on regional trends and the ongoing supply-demand equation.
Key Takeaways for Spain Real Estate in 2025:
- Prices up 12.7% year-on-year; highest since 2007
- Second-hand homes outperform new builds
- All regions show double-digit annual gains
- Market driven by supply shortages and strong demand
