Housing Market Trends in August
In the last month of summer 2025, Spain saw a decline in real estate transactions. According to national statistics, 47,697 transactions were completed in August, down 3.4% compared to the same period last year. This was the lowest August figure in the past five years. Meanwhile, mortgage lending continued to grow: the number of new home loans increased by 7.5%, reaching 33,271, with most loans issued at a fixed rate.
Market Structure: New and Existing Properties
The slowdown primarily affected the secondary housing segment. The number of transactions for such properties decreased by 4.9%, totaling 37,574. At the same time, demand for new apartments rose by 2.9%, reaching 10,123 operations. Experts attribute the market decline to limited supply and high prices, causing some potential buyers to abandon plans to purchase property. It is noted that the lack of new affordable options could further reduce the number of deals.
Types of Housing and Monthly Dynamics
In August, 93.4% of all properties sold were in the free-market category, with 6.6% classified as protected housing. Sales of free-market apartments fell by 2.6% year-on-year, while protected housing dropped by 12.6%. Compared to July, the overall number of transactions declined by 26.3%. Sales of new apartments fell by 25.8%, and secondary apartments by 26.5%.
Annual Overview and Regional Differences
Despite the decline in August, the market showed positive momentum over the first eight months of 2025: the total number of transactions increased by 16.1%. Sales of new properties rose by 26.1%, while resale transactions grew by 13.5%. On a regional level, a downturn was recorded in nine autonomous communities, most notably in Asturias, the Canary Islands, and Murcia. Madrid, Andalucía, the Valencian Community, and the Basque Country also saw declines, though less pronounced. In Catalonia, the drop was only 0.6%. Meanwhile, La Rioja, Castilla y León, and Aragón experienced an increase in transactions.
Mortgage market: growth and specific trends
In August, 33,371 mortgages were issued for home purchases, up 7.5% from a year earlier. This is the highest August figure since 2022. The number of mortgages has been increasing for 14 consecutive months. The average interest rate on loans stood at 2.89%, the lowest level since February 2023. Fixed-rate loans accounted for 59.4%, while variable-rate loans made up 40.6%.
Average loan amounts and regional trends
The average mortgage loan amount increased by 15.5% to reach €169,650. The total amount disbursed exceeded €5.6 billion, a 24.1% increase compared to last year. Between January and August, the number of mortgages rose by 22.9%, total lending volume grew by 39%, and the average loan size was up 13.2%. Some regions, such as Asturias, Extremadura, Madrid, and Andalucía, saw a decrease in new mortgages. At the same time, Cantabria, the Balearic Islands, and Aragón recorded significant growth.
