Spain’s real estate market is entering 2025 with noticeable price growth. According to expert forecasts, the average price per square meter across the country will rise by about 7% and exceed €1,900. In major cities like Madrid and Barcelona, prices will be even higher—over €3,900 per square meter.
The main reasons for this price increase are the stabilization of interest rates, steady demand, and a limited supply of new developments. These factors are keeping the market active and driving prices further up.
In 2025, the number of residential sales is expected to reach 800,000—almost a quarter more than in 2024. More than half of all transactions will take place in Madrid, Catalonia, the Valencian Community, and Andalusia. At the same time, northern regions are also showing positive trends, thanks to the growth of the tourism sector, investor interest, and the return of domestic buyers.
Experts note that a combination of a stable labor market and more favorable lending conditions will continue to support both price increases and buyer activity. Special attention is being paid to urban areas with good transport links, where demand remains particularly strong.
Rising housing prices are driving increased interest in mid-sized cities and suburbs, particularly in municipalities near major metropolitan areas. This trend is due to buyers seeking more affordable options as property becomes more expensive in central districts.
The profile of homebuyers in 2025 remains unchanged: families and young people continue to make up the majority, purchasing property to improve their living conditions and often able to obtain mortgages. At the same time, investing in real estate as a hedge against inflation is gradually regaining popularity.
The mortgage market is showing signs of stability: the Euribor rate remains around 2%, and banks are offering more attractive lending conditions.
Despite positive expectations, experts emphasize that the shortage of affordable housing and the lack of major reforms in urban planning and construction remain the main challenges for the market. Balanced development requires expanding supply, ensuring price accessibility, and creating legal guarantees for property owners.
