Spain’s residential real estate market continues its rapid ascent, reaching its highest price levels in 17 years as buyer activity and investment flood the sector. According to the latest data from the Ministry of Housing and Urban Agenda, the national average price for free housing now stands at €2,093.5 per square metre—a 10.4% jump compared to this time last year, and up 6.1% already since January.
In just the past quarter alone, home prices rose a further 3%, fueling ongoing debates about affordability and accessibility for local buyers. The figures reflect Spain’s third-highest residential property prices since 2000, surpassed only by two records set during the 2008 market peak.
Madrid, Balearic Islands, and Catalonia Lead the Pack
The Community of Madrid remains Spain’s most expensive region for homeownership, with average prices climbing to €3,630.9 per square metre after a 13.5% year-on-year increase. The Balearic Islands are close behind at €3,518.2/m², representing a 13.2% jump over the previous year, while the Basque Country holds third place at €2,792.5/m².
Catalonia also recorded significant growth, with prices averaging €2,499.6/m²—up 9.3% year-on-year. Provincial figures show Barcelona soaring to €2,920.9/m² (+9.5%), with Malaga rising 12.8% to €2,708.4/m² and Vizcaya up to €2,728.8/m² (+7.2%).
Cantabria led the country with the sharpest annual increase—up 13.8% to €1,851.3/m².
Big Investors Bet on Spain: €500 Million Commitments
Reflecting confidence in Spain’s residential market, international investment funds BGO and Dazia Capital have pledged to inject €500 million into new housing projects throughout Spain. These funds aim to develop new residential offerings amid soaring demand and limited supply, further solidifying the country’s appeal to both foreign and domestic investors.
Wide Regional Gaps: Affordable Housing Still Available
Nevertheless, the rise in average prices conceals significant regional disparities. Extremadura remains the nation’s most affordable autonomous community, with an average price of just €919.9/m², despite recording a modest 2.4% annual increase. Castilla-La Mancha and Castilla y León follow, with prices at €1,059.8/m² (+9.8%) and €1,172.5/m² (+8.3%), respectively.
At the extreme ends of affordability, Ciudad Real is Spain’s least expensive province for buyers at €747.4/m² (+3.2%), followed by Jaén (€840.3/m²) and Zamora (€882.1/m²).
The cheapest municipality is Puertollano in Ciudad Real, with home prices averaging just €617/m². By contrast, Santa Eulalia del Río, in the Balearic Islands, tops the chart as Spain’s most expensive municipality for properties over 25,000 inhabitants, boasting prices of €6,042.6/m².
Outlook for 2025: Growth to Continue?
Industry analysts point to robust demand, limited new construction, and continued strong international interest as drivers behind Spain’s housing market surge. As BGO and Dazia Capital’s multi-million-euro investment demonstrates, confidence in the Spanish real estate sector remains high, despite concerns over affordability and access for first-time buyers.
With these trends in play, Spain’s residential market seems set to maintain its upward momentum through 2025 and beyond.
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