The new housing market in Spain in 2025 is experiencing unprecedented growth. High demand, limited supply, and a general trend of rising property prices have led to record highs for new apartment and house prices in several provinces.
According to analysts, the average price per square meter of new builds nationwide is €2,528. This is 66% higher than the lowest prices recorded after the 2008 crisis. However, price growth varies by region: some provinces see moderate increases, while others experience sharp jumps.
Málaga province leads in price growth, with new build prices rising by 24.4% over the year. The average price per square meter here is €3,084. This surge is attributed to the attractive climate, developed tourist infrastructure, cultural events, and convenient transport links. Marbella, Benalmádena, and Vélez-Málaga are particularly popular among foreign buyers and investors.
The Balearic Islands rank second, with prices up 19.8%. New developments remain scarce here due to limited land and strict urban planning regulations. The average price per square meter has reached €4,399—the highest in the country. The islands attract European investors seeking stable real estate investments.
In Madrid, the increase reached 15.7%. The main changes are taking place in the suburbs, such as Pozuelo de Alarcón, Alcobendas, and Rivas-Vaciamadrid, where growth rates even surpass the capital. Due to a lack of available land plots in the city center, new developments are being built in well-connected neighborhoods. The average price in the province is €3,753 per square meter.
Cantabria also saw a 15.7% increase. Here, the market is supported by both local and foreign buyers, as well as new residents working remotely. In Alicante, prices rose by 12%, especially in coastal towns—Benidorm, Torrevieja, and Orihuela—where purchasing a home requires more than 70% of the average annual salary.
In the province of Lleida (Catalonia), new builds became 12% more expensive. This is driven by proximity to Barcelona and the appeal of the Costa Brava coast. In Pontevedra, the increase was also 12%, with prices for new apartments in Vigo rising by 25%—the highest rate in the country.
In Badajoz, despite traditionally low prices for existing homes, the cost of new builds rose by 11.5%. In Murcia, growth reached 10.4%—both in the regional capital and on the coast. In Avila, thanks to its proximity to Madrid and other major cities, prices increased by 9.4%.
Experts highlight several key factors driving up the cost of new developments. First, there remains strong interest from foreign buyers—particularly from the United Kingdom, Germany, France, and Northern European countries. Second, popular regions and cities face land shortages for construction, which limits supply. Third, modern new builds are noted for their high energy efficiency: 95% of new properties have an A or B rating, reducing operating costs and making them more attractive to buyers.
In addition, post-pandemic housing requirements have changed: buyers are increasingly seeking apartments with terraces, green spaces, and the option to set up a home office. These trends are especially evident in new residential complexes.
Thus, the market for new builds in Spain remains one of the most dynamic in Europe. In the near future, experts do not expect prices to fall, especially in regions with high demand and limited supply.
