Real estate transactions continue to decline
In August 2025, Spain’s residential property market saw a further slowdown. A total of 38,239 purchase and sale transactions were completed over the month, down 1.3% compared to the same period last year. This is the lowest figure in the past two years and marks the second consecutive monthly drop in activity. The decline was especially noticeable in apartment sales, which fell by 3.3% to 27,822 units. At the same time, demand for single-family homes increased by 4.5%, reaching 10,417 transactions.
Regional trends were mixed. Eight autonomous communities saw an increase in transactions, led by Castilla y León, Aragón, Extremadura, País Vasco, Castilla-La Mancha, Galicia, Asturias, and La Rioja. Meanwhile, nine regions reported declines, most notably in Madrid, Islas Baleares, Navarra, Comunidad Valenciana, and Cantabria. In Cataluña, Murcia, and Andalucía, the decrease was less pronounced than the national average.
Housing prices continue to rise
In August, the average price per square meter of housing in Spain reached €1,728, up 5.6% from a year earlier. Home prices have now been rising for 25 consecutive months. Prices increased both in the apartment segment—where the average reached €1,993 per square meter (an 8.1% rise)—and in single-family homes, which averaged €1,312 per square meter (up 2.5%).
In most autonomous communities, housing prices have risen again. The highest increases were recorded in Cantabria, Extremadura, the Balearic Islands, Murcia, the Canary Islands (Canarias), and the Valencian Community, where growth ranged from 11% to 22%. In other regions, price increases were less significant. The only exceptions were Castilla-La Mancha and Asturias, where the average cost of housing fell.
Mortgage lending slows down
In August 2025, 21,011 new mortgages were issued for home purchases in Spain. This is 3.3% more than a year ago, but the growth rate continues to slow. The number of new loans is the lowest since September 2023, and the growth rate is the weakest in the last year and a half.
In 11 regions, the number of approved mortgages grew, most notably in Extremadura, Galicia, Aragón, Asturias, Castilla y León, Cataluña, the Basque Country, Castilla-La Mancha, and La Rioja. Murcia and Cantabria saw more modest growth. Meanwhile, the number of new mortgages dropped in Navarra, the Balearic Islands, Madrid, the Valencian Community, Andalusia, and the Canary Islands.
The average mortgage size in August rose by 9.4%, reaching €161,692. All regions showed positive dynamics, with the most notable increases in Asturias and Aragón. On average, 54.9% of housing transactions involved taking out a mortgage, with the loan amount covering about 74% of the property’s purchase price.
