Official Data: Housing Price Growth and Its Peculiarities
The Spanish Ministry of Housing and Urban Agenda (Ministerio de Vivienda y Agenda Urbana, MIVAU) has released updated figures on housing price trends. According to their statistics, in the third quarter of 2025, the average price per square meter of free-market housing reached €2,153. This figure is the highest ever recorded since tracking began in 1995. Over the year, prices rose by 12.1%, and by 2.9% over the quarter.
However, as ministry officials emphasize, this refers exclusively to the so-called ‘appraised’ value, not to actual transactions on the market. In their view, this distinction fundamentally changes how the situation should be perceived. In 2008, at the height of the real estate market, a similar indicator stood at €2,101 per square meter. But if inflation is taken into account and that sum is recalculated using today’s consumer price index, the current level falls well below the historical high.
Market vs. Reality: Why the Numbers Differ
Ministry experts note that this nominal record does not signal a repeat of the 2008 ‘bubble.’ If the figures are adjusted for inflation, the price per square meter in the first quarter of 2008 would be equivalent to about €2,883 today. So, despite the impressive numbers, real purchasing power and housing affordability remain far from pre-crisis levels.
The agency also highlights the gap between appraised values and actual transaction prices. According to notarial statistics, the average price per square meter in August 2025 was €1,727.99. This is noticeably lower than official appraisals, indicating a significant divide between formal estimates and market figures.
What’s next for the real estate market: prospects and challenges
Analysts warn that this situation can lead to a distorted perception of the market’s condition. Appraised values are often used for calculating taxes, credit limits, and other financial tools, but they don’t always reflect the real price of housing for buyers and sellers. As a result, many Spaniards face difficulties purchasing property despite the apparent stability or even growth of the market.
Authorities urge caution in interpreting statistics and recommend taking all factors into account rather than drawing quick conclusions from record figures. In the coming months, further analysis of trends is expected in order to develop more accurate forecasts and support measures for citizens. For now, Spain’s real estate market remains in the spotlight—among both experts and ordinary residents.
