Trends in Real Estate Prices
In October 2025, Spain saw a significant increase in the average cost of residential real estate. According to analysts, prices rose by 12.9% year-over-year and by 1.5% compared to September. This growth rate is one of the highest in recent years and has far outpaced inflation. The main contribution to this dynamic came from major cities and economically active regions where demand for housing remains consistently high.
Leading Regions and Growth Patterns
This trend is especially pronounced in provincial capitals and large cities, where the price per square meter rose by 1.8% in just one month. Island territories, including the Balearic and Canary Islands, also posted significant increases—1.4% for the month and 15.9% year-over-year. For the first time since 2007, the largest cities have hit record price levels, signaling the market’s recovery after years of crisis. Inland areas and suburbs are keeping pace as well, with annual growth exceeding 10%.
Factors Influencing the Situation
Experts note that such rapid price increases are driven by sustained demand, supported by high employment rates and access to mortgage loans. Despite positive trends in new construction, supply is still lagging behind the growing needs of buyers. This creates further upward pressure on prices, especially in locations with limited land available for development.
Supply and Demand Trends
In recent months, housing sales have remained at record highs. Market participants note that even with the launch of new projects, this is still not enough to meet the demand from all those wishing to purchase property. As a result, tension persists, especially in regions popular among investors and families.
Market outlook
Analysts predict that the situation is unlikely to change dramatically in the near future. As long as strong demand meets limited supply, prices will keep rising, though the growth rate may start to slow gradually. Increasingly, market players are turning their attention to inland areas and the islands, where more affordable housing options can still be found.
