In 2025 Spain sold 705,000 homes—30% paid in cash and foreign buyers made up 13.8%. Prices rose 9.5% to €2,354/m² and average mortgage payment hit €796/month.
Spain’s real estate market returned in 2025 to activity levels not seen since the pre-crisis boom, with sharp price rises, heavier mortgage bills for many households and a notable share of purchases completed without a loan.
According to provisional figures released by the College of Registrars, 705,000 homes changed hands over the year while 498,500 mortgages were registered. That gap means roughly three out of ten purchases—about 206,500 homes—were paid for in cash. The registrars note that the origin of those funds must be declared in the deed; common sources include proceeds from previous property sales, inheritances and personal savings.
Market momentum concentrated late in the year: the fourth quarter alone recorded 178,270 sales, the second-highest quarterly volume since mid-2007. Resales dominated the market—141,450 second-hand homes were sold in Q4, the highest quarterly total on record—while new-build sales reached 24,200. The preference for second-hand stock reflects a shortage of new housing supply.
Foreign buyers remained important players. In 2025 around 97,000 purchases —13.8% of the total—were made by foreigners (statistics do not separate residents from non-residents), and some 24,200 operations in Q4 involved foreign purchasers.
Mortgage dynamics: higher loan amounts despite lower rates
Mortgage lending also rose: 498,500 mortgages for home purchases were formalised in 2025, and in Q4 alone 132,385 mortgages were signed with an average loan amount of €171,177 — an all-time high. Regional averages were markedly higher in Madrid (€277,680) and the Balearic Islands (€271,874), followed by Catalonia (€190,086) and the Basque Country (€181,708). By contrast, Extremadura’s average loan remained below €100,000. Extremadura and Castilla–La Mancha are the only regions where mortgage debt per square metre does not exceed €1,000.
The rise in loan amounts reflects house price inflation offsetting the benefit of falling interest rates. The average interest rate on new loans fell for the seventh consecutive quarter to 2.97% in Q4 2025 (down from over 3.3% at the end of 2024), but prices climbed faster.
Prices and affordability
House prices rose 9.5% year-on-year, taking the national average price to €2,354 per square metre — a new record. The most expensive communities were Madrid (€4,241/m²), the Balearic Islands (€4,101/m²), the Basque Country (€3,489/m²) and Catalonia (€2,779/m²). Their respective capitals recorded even higher averages of approximately €5,283, €4,086, €3,514 and €4,800 per square metre.
Rising prices have worsened affordability. The Association of Registrars calculates the average mortgage payment at about €796.6 per month, roughly one third of the average salary. The burden is heaviest in the Balearic Islands and the Community of Madrid, where average monthly mortgage contributions reach €1,298 and €1,250 — representing 55% and 43.7% of average salaries, respectively. The Canary Islands (38.6%) and Andalusia (34.6%) also exceed the national average effort; Extremadura, La Rioja and Murcia remain the most affordable, with average mortgage effort below 25% of wages.
Tourist and seasonal rentals: registry sees mass uptake and many rejections
Spain’s new national registry for tourist and seasonal rentals recorded some 300,000 properties in its first year, but also denied 84,250 registrations. The registry is already a key instrument for monitoring and regulating tourist housing supply in tourist-heavy zones.
What this means for buyers, sellers and policy
• Buyers: falling rates have helped, but rising prices and larger loan amounts mean real monthly burdens are rising in many regions. Cash buyers continue to be a sizeable share of the market, which can speed up transactions and push competition in certain segments.
• Sellers: demand remains strong, especially for resale homes, sustaining price growth and fast transaction volumes in 2025.
• Policymakers: the registry of tourist rentals and the high number of denied registrations underline regulatory tensions in tourist hotspots, and regional disparities in affordability will likely keep housing policy on the agenda.Bottom line
2025 was a busy year for Spain’s housing market: strong sales, growing loan sizes, record prices and persistent regional imbalances. Lower interest rates have not eased the squeeze on affordability because price gains and larger mortgages have kept monthly payments high for many households.
