Average Spanish home prices rose 32.8% from 2020–2025 to €218,393 for a typical 90 m² home, led by Palma de Mallorca, Balearic Islands and Madrid amid rising tourist demand and scarce land.
A recent study shows the average price of homes for sale in Spain has surged 32.80% over the last five years, from €164,453 in 2020 to €218,393 in 2025 for a typical 90 m² property. The jump — more than double inflation accumulated over the same period — is intensifying a nationwide accessibility crisis for buyers and renters.
Regionally, three autonomous communities stand out with increases above 50% between 2020 and 2025: the Balearic Islands (+62.52%), Madrid (+53.45%) and the Valencian Community (+51.76%). Analysts attribute these sharp rises largely to strong tourist demand and a scarcity of available land in high-demand coastal and metropolitan areas.
Province-level data mirror the regional spikes. The top five provinces with the largest increases are led by Santa Cruz de Tenerife (+62.88%), followed by the Balearic Islands (+62.52%), Málaga (+62.02%), Alicante (+58.21%) and Madrid (+53.45%). By contrast, some inland provinces have bucked the national trend: Palencia (-7.10%) and Zamora (-6.80%) recorded price falls over the same period.
The picture is even more pronounced in provincial capitals. Palma de Mallorca tops the list with a 70.27% increase — from €280,586 in 2020 to €477,754 in 2025. Málaga (+67.44%), Alicante (+64.18%) and Valencia (+64.07%) also saw steep price growth, reflecting strong urban and coastal demand.
The combination of tourism-driven demand, limited developable land in popular areas, and sustained buyer activity has created mounting affordability pressures. For prospective buyers, rising mortgage costs and higher asking prices are shrinking options; for renters, price knock-on effects risk higher rents in many urban and coastal markets.
Policymakers and market participants face growing pressure to respond — through land-use planning, incentives for affordable housing, and measures to cool speculative demand — if Spain is to ease the accessibility crisis and rein in rapid price growth in its most affected regions.
