In September 2025, Spain’s real estate market returned to the spotlight: the number of housing sales surged, and the average price per square meter reached a historic high. Nearly 59,000 transactions were completed within a month, a 5% increase compared to the previous year. This jump came as a surprise after two months of declining activity. At the same time, the average price per square meter exceeded €1,940 for the first time, setting an all-time record. Mortgage lending also kept pace, with the number of new contracts rising by more than 11% year-on-year.
The market’s performance was uneven: some regions experienced rapid growth, while others saw stagnation or even decline. Castile and León, La Rioja, Murcia, and Andalucía stood out, with transactions increasing at double-digit rates. Meanwhile, Madrid, the Canary Islands, Cantabria, and Navarra reported negative dynamics. Andalucía led in the total number of transactions, followed by the Valencian Community, Catalonia, and Madrid.
Regions: Who’s leading and who’s lagging behind
Most Spanish regions have seen an increase in property transactions, although the trends vary significantly by region. Castilla y León posted an impressive 21.4% rise, La Rioja — 21.2%, Murcia — 18.5%, and Andalucía — 11%. Meanwhile, sales fell in Madrid and the Canary Islands by 5.4% and 3.2% respectively. In Catalonia and Valencia, the growth was modest — just over 1%. Interestingly, even in the Balearic Islands, where housing demand is traditionally high, growth barely tipped over zero.
In absolute terms, Andalucía is the clear leader with more than 11,600 property deals in a single month. The Valencian Community and Catalonia also show strong market activity, and Madrid, despite a downturn, remains among the top five largest property markets in the country.
Prices: new highs and sharp regional contrasts
The average cost of housing in Spain has been rising for 26 consecutive months. In September 2025, it reached €1,940 per square meter — setting a new all-time high. Apartment prices jumped nearly 8%, averaging €2,230 per square meter. Houses and villas also followed suit, with the average price climbing 5.4% to €1,466 per square meter.
The most striking price increases were recorded in La Rioja (32.4%), Cantabria (22.6%), and the Canary Islands (22%). Meanwhile, prices in Navarra have barely changed, and in some regions growth was more moderate. Despite a decline in sales, Madrid saw average property prices rise by 10.1%.
Mortgages: demand for home loans is making a comeback
September brought another piece of news: mortgage lending in Spain is gaining momentum again. Nearly 30,000 new mortgages were signed in just one month—an 11.4% increase over the previous year. What’s more, this positive trend was observed in every region of the country without exception. The most active borrowing took place in Extremadura, Aragón, Castilla-La Mancha, and Murcia, where growth ranged from 19% to 39%.
The average size of a mortgage loan also rose, reaching €183,118—the second highest amount ever recorded. In Aragón and Madrid, the average mortgage increased by nearly 29%. At the same time, slight decreases in average loan size were noted in La Rioja and Navarra.
Half of all deals involve a mortgage
Interestingly, more than half of all residential property purchases in Spain in September were financed with mortgages. On average, banks covered about 72.5% of the property’s value. This shows that, despite rising prices, demand for housing remains high and credit remains accessible for most buyers.
Experts note that this surge in transactions and prices could be linked to expectations of stricter lending conditions or changes in the labor market. It’s also possible that some buyers simply don’t want to miss the opportunity while mortgage rates remain relatively low.
By the way, who are Spanish notaries
Incidentally, Spanish notaries (Notarios de España) are not just lawyers—they play a vital role in the real estate transaction system. They authenticate purchase and sale agreements, verify the legality of deals, and provide legal protection for both parties. The General Council of Notaries (Consejo General del Notariado) unites more than 3,000 specialists across the country. Their statistics are considered among the most accurate and up-to-date, with transaction data reported almost in real time. This allows analysts and market participants to respond quickly to changes. In recent years, notaries have become even more influential; they don’t just formalize deals but also advise on taxation, inheritance issues, and even family law. For many Spaniards, a notary is not merely a formality but a safeguard when buying property.
