Spain’s second-hand real estate market reaches record highs in 2025 with prices up 12.8%. Discover regional trends, market drivers, and what this means for buyers and investors.
Spain’s Second-Hand Real Estate Soars in 2025, Surpassing Pre-Crisis Highs
Spain’s second-hand real estate market is experiencing an intense surge, setting new records and exceeding levels not seen since the 2007 real estate bubble. According to the latest Housing Price Index (HPI) from the National Institute of Statistics (INE) for Q2 2025, second-hand house prices rose by a staggering 12.8%, continuing an upward trajectory that spans an incredible 40 consecutive quarters.
Second-Hand Housing Outpaces New Builds
While both new and resold homes have seen significant appreciation, the market for pre-owned properties is taking the lead. The rise in second-hand housing (12.8%) has now surpassed the growth of new developments, which registered a 12.1% increase over the last year. On a quarterly basis, the difference is even more pronounced: second-hand prices rose by 4.2% between April and June, compared to a more modest 2.6% for new builds.
This sustained growth has propelled Spanish property prices to a new national high, with the overall average climbing 12.7% year-over-year—a trend that property buyers, investors, and analysts cannot afford to ignore.
Record-Setting Longevity: 40 Quarters of Growth
The current rally in house prices is not a fleeting phenomenon. The market has now enjoyed 40 quarters of uninterrupted gains, with annual increases regularly surpassing the 10% threshold. Such endurance highlights the powerful imbalance between supply and demand gripping Spain’s second-hand real estate market.
Supply-Demand Imbalance Fuelling Price Surges
What’s behind this relentless climb in house prices? Experts point to a severe shortage of available properties compared to a sustained and growing demand. As more buyers compete for limited inventory, the price pressure is mounting nationwide.
The Bank of Spain estimates a shortfall of between 400,000 and 450,000 homes from 2022 to 2024 alone, with over half of this deficit concentrated in five major provinces: Madrid, Barcelona, Valencia, Alicante, and Malaga. For 2025, a further 150,000 homes are projected to be needed, pushing the accumulated housing deficit to around 600,000. This housing crunch is reflected in both the sales and rental markets and is making it increasingly difficult for first-time buyers and vulnerable groups to secure a place to live.
Double-Digit Growth Across All Regions
Every autonomous community in Spain recorded double-digit annual price growth in the second-hand market—a testament to the widespread nature of the surge.
- Murcia: +14.6%
- La Rioja: +13.7%
- Aragon: +13.7%
- Castilla y León and Andalusia: +13.6%
- Asturias: +13.5%
- Melilla: +13.4%
- Madrid: +13.3%
- Ceuta and Galicia: +12.7%
- Catalonia: +11.6%
- Valencian Community: +12.6%
Even regions with the smallest increases, such as Cantabria (+10.8%) and Castilla-La Mancha (+11.3%), showcase robust appreciation.
Major Urban Hotspots
The biggest provinces—Madrid, Barcelona, Valencia, Alicante, and Malaga—are leading demand and witnessing the most acute shortages. These urban centers continue to attract both domestic and international buyers, intensifying competition and driving further price hikes.
Are We Back in a Bubble? How 2025 Differs from the Past
Although today’s price growth recalls the frenzied pace of Spain’s pre-2008 property ‘boom,’ the underlying conditions differ. This time, the surge is not driven by speculative over-building or risky mortgages, but by a chronic housing supply deficit unable to meet demographic and investor demand. Tighter lending standards and stronger buyer profiles provide a measure of stability.
Challenges for Buyers and Policy Makers
With housing now less affordable for younger and lower-income groups, access to the market has become a pressing social issue. The ongoing mismatch between supply and demand will require both public and private sector intervention, including fast-tracking new construction, supporting affordable housing, and easing bottlenecks in planning and development.
What Does This Mean for Buyers and Investors?
- For buyers: Expect continued competition and rising prices, especially in urban hotspots. Early action and flexibility are more important than ever.
- For investors: Spain’s second-hand real estate offers compelling returns, but due diligence is crucial as risks may grow if the imbalance persists.
- For policy makers: Addressing the housing shortage will be key to stabilizing the market and ensuring affordable access for the next generation.
Spain’s second-hand real estate market is breaking new ground in 2025—offering both opportunities and challenges that will shape the market for years to come.
