Spain’s housing prices surged 12.7% in 2025, marking the highest annual increase since 2007, according to data released Friday by the National Statistics Institute (INE). The significant rise underscores the ongoing strength in the Spanish property market despite broader economic headwinds.
The increase in regional pricing was 13.5% on average in Extremadura, exceeding the national average of 12.7%.
New homes saw an average annual price increase of 11.3% in 2025, the largest jump in 18 years, although existing homes rose 12.9%.
This double-digit increase builds on the 8.4% rise recorded in 2024, extending the upward trend to 12 consecutive years.
Throughout 2025, housing prices exhibited steady, albeit slight, increases, stabilizing around a 12% gain. In the first quarter, prices rose 12.2% year-over-year, followed by 12.7% in the second, 12.8% in the third, and 12.9% in the fourth.
The ongoing price appreciation is occurring against a backdrop of limited housing availability in Spain, failing to meet growing demand and exacerbating access difficulties, particularly for young people and those with fewer financial resources.
Data from the Ministry of Housing and Urban Agenda indicates an even steeper increase of 13.1% in 2025, bringing the average price to €2,230 per square meter – the highest figure in the ministry’s historical records dating back to 1995.
According to the Ministry’s data, this surpassed previous peaks seen during the housing boom, with properties up to five years old commanding prices exceeding €2,600 per square meter.
Prices Rise Nearly 13% in the Final Quarter
In the fourth quarter of 2025, housing prices increased by 12.9% compared to the same period the previous year, representing the largest increase in nearly 19 years, since the first quarter of 2007.
This marks the 43rd consecutive quarter of price increases, according to INE data, which accounts for approximately 95% of property transactions during the quarter based on administrative records.
Second-hand homes experienced the largest price increases between October and December, rising 13.1% – a trend continuing for five consecutive months – while new homes increased by 11.2%.
Double-Digit Increases Across All Regions
During the fourth quarter of 2025, all Spanish communities and autonomous cities reported positive annual price changes, with all experiencing double-digit growth.
The largest price increases were recorded in Castilla y León (15.3%), Aragón, Murcia, and La Rioja (all at 14.4%), followed by Madrid (14.2%) and Galicia (14.1%).
The smallest increases, still exceeding 10% in all cases, were observed in Catalonia (10.9%), the Canary Islands (11%), and Navarre (11.4%).
Compared to the third quarter, prices increased by 1.8% in the fourth quarter, the lowest quarterly increase of 2025.
New home prices rose 2.2% in the fourth quarter of 2025 compared to the third, while second-hand home prices increased by 1.8%.
