Housing price trends in Spain
In September 2025, the average price per square meter in Spain reached €2,517. Over the year, this figure rose by 15.3%, and over the last quarter—by 3.2%. Experts attribute this sharp increase to limited supply amid steady demand. As a result, real estate prices in the country have reached a new all-time high, particularly evident in the largest cities.
Rental prices are also on the rise: the national average reached €14.5 per square meter. Over the year, rent increased by 10.9%, but in the past three months there was a slight decrease—down 1.3%.
Investment returns and transaction activity
In the third quarter of 2025, rental returns dropped to 6.9%. Despite this, real estate investments still yield returns significantly higher than ten-year government bonds, which are at 3.3%.
In August, 47,729 property sale transactions were recorded across the country, 3.5% fewer than a year earlier. The last decrease in activity was seen in July 2024. However, experts believe the market will maintain positive momentum through the rest of the year and in 2026, though growth rates are expected to slow.
Mortgage lending and interest rates
The number of new mortgage agreements continues to grow. In August 2025, 33,117 housing loans were issued—7.8% more than in August 2024. Thus, the growth streak has continued for 14 consecutive months.
In October 2025, the European Central Bank maintained its key interest rate at 2%. The euríbor index, which affects payments on variable-rate mortgages, stood at 2.172% in September (compared to 2.114% in August). These changes impact monthly loan payments. For those seeking stability, banks continue to recommend fixed rates.
National and regional support measures
Homebuyers in Spain can benefit from several forms of assistance at the national level. These include government mortgage guarantees for young people and large families, tax incentives on transactions, as well as subsidies for families facing financial hardship due to rising rates.
Different autonomous communities have their own programs. For example, Andalucía offers the ‘Garantía para jóvenes’ initiative, the Balearic Islands run the IBAVI program, Cataluña provides special loans for young people, and Madrid implements the ‘Mi primera vivienda’ project. In Galicia, La Rioja, Murcia, Navarra, País Vasco, and other regions, subsidies, guarantees, and special conditions are also available for certain groups of citizens.
Key trends for autumn 2025
In autumn 2025, the Spanish real estate market is defined by several key factors. Housing prices continue to rise, with the average cost per square meter exceeding €2,500. Returns on real estate investments remain higher than those of government bonds. The euríbor index has slightly increased, affecting payments on variable-rate mortgages. The number of transactions has decreased, but the market remains active. New mortgage approvals are on the rise, and most regions offer support programs for young people and families with middle and low incomes.
