Property News from Spain

Building on the Q2 review, the Spanish residential real estate market experienced intense, accelerated growth in the third quarter of 2025, largely outperforming many of its European peers. This buoyant performance confirms the market's transition into a full upward cycle, characterised by significant price hikes, particularly in popular urban centres and tourist hotspots.

The market momentum is primarily fueled by a potent combination of robust demand - now nearing post-financial crisis highs - and a structural deficit in the housing supply. While the strong price appreciation offers opportunities for investors, it simultaneously amplifies the acute challenge of affordability for the average Spanish household. For expats considering a move, investment, or property purchase, understanding these intense regional variations and financial metrics is more critical than ever. The headline figures for Spain's property market in Q3 2025 reflect an ongoing and even intensifying boom, affecting both new and existing homes. These price increases were strong enough to accelerate the market's trajectory compared to the previous quarter.

National price movement in Spain 2025

The average price of finished homes (covering both newly constructed and resale properties) across the entire country saw a significant leap in value, as reported by the Tinsa IMIE Local Markets index:

• Year-on-Year (YoY) Change: The national average price increased by +11.7% in nominal terms compared to Q3 2024.
• Quarter-on-Quarter (QoQ) Change: Prices rose by +3.0% compared to the second quarter of 2025.

• Real Growth: Crucially, even after adjusting for the effects of inflation (known as deflating the value), the Spanish property price experienced a +8.6% real growth. This figure indicates that property is genuinely becoming more expensive, not just keeping pace with general inflation. The mean value of residential property now stands at €2,018/m².

Regional growth intensifies in Spain

The strong momentum of the Spanish property market in Q3 2025 has led to a broadening of high growth rates across the country. Price growth is generalised across Spain, but the most intense rises are concentrated in regions driven by two key factors: employment poles and tourist centres. This spread is evidenced by the rapidly growing number of provinces registering double-digit annual growth (13 provinces), marking a notable increase from the nine provinces that had achieved this threshold in the previous quarter.

Read more at thinkSPAIN.com