Spain’s real estate market is making headlines as house prices soar at a rate unseen in 20 years, according to the latest data from Fotocasa’s Real Estate Index. In November, the price of second-hand housing for sale rose by 1.4% compared to October, culminating in a remarkable 18.8% increase year-on-year. This surge marks the strongest annual growth since data collection began two decades ago.
Average Home Prices Reach New Heights
The average price for homes listed in November hit €2,828 per square metre, up from €2,381 a year earlier. This means the average value of a home climbed to €226,208 in November 2025, compared to €190,382 at the same time last year. Experts at Fotocasa point out that the housing market is experiencing an “unprecedented” rate of growth, driven by a persistent imbalance between supply and demand—where demand is now quadrupling available supply.
High Demand Outpaces Supply
Fotocasa analysts emphasize that, although national prices remain 4.2% below the housing bubble peak of 2007, some of Spain’s most dynamic cities have already surpassed those historical highs. “A supply incapable of absorbing the strong rate of household creation, combined with improvements in mortgage conditions, is fueling a powerful surge in demand,” the report explains.
Double-Digit Increases Across 11 Regions
All 17 of Spain’s autonomous communities saw property prices rise over the past year, with 11 regions registering increases of over 10%. Noteworthy figures include:
- Region of Murcia: +24.4%
- Valencian Community: +23.5%
- Asturias: +23.4%
- Andalusia: +20.7%
- Canary Islands: +20.2%
- Cantabria: +18.6%
- Madrid: +14.9%
- Balearic Islands: +14.8%
- Catalonia: +14.3%
- Basque Country: +12.0%
- Galicia: +11.4%
Other regions such as La Rioja, Castilla y León, Aragón, Castilla-La Mancha, Navarra, and Extremadura saw more modest growth, but all still posted positive annual changes.
Most Expensive Markets: Madrid and Balearic Islands Lead
Regionally, the Balearic Islands remain Spain’s most expensive property market, commanding €5,206 per square metre. Madrid surpassed the €5,000 barrier for the first time, at €5,059 per square metre. Other costly markets include Andalusia (€2,713), the Valencian Community (€2,553), Cantabria (€2,461), and Asturias (€2,224).
At the opposite end, the most affordable regions for homebuyers are Castilla-La Mancha (€1,300/sqm) and Extremadura (€1,295/sqm).
Looking Ahead
With the demand continuing to dramatically outpace supply in several hotspots—and mortgage conditions driving more buyers into the market—experts say there’s little sign of the rapid price growth abating in the short term. However, some warn that affordability may become a growing concern for many Spanish families if the trend continues.
