House prices hit new high in Spain as UK tops list of foreign buyers

HOUSE prices have soared to a record high in Spain according to figures for the first quarter of 2025 released on Thursday.

Sales rose annually by almost 20% with foreign purchasers accounting for 14% of the 181,625 deals, led by people from the UK.

The figures come from the Association of Registrars which clocked average prices at €2,226 per m2 by the end of March.

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House prices recorded a year-on-year increase of 8.1% with new properties coming in at €2,467 per m2 while second-hand homes recorded €2,153.

Among Spain’s 17 regions, the highest average prices were in the Madrid Community (€3,955 per m2): the Balearic Islands (€3,822); the Basque Country (€3,193) and the Canary Islands (€2,625).

The splits by province showed the biggest prices in Madrid and Guipuzcoa (€3,847) and the Balearic Islands and Malaga (€3,046).

By capital, the highest average costs were in San Sebastian (€5,824), Madrid (€4,716), Barcelona (€4,538), Palma (€3,735) and Bilbao (€3,129).

Compared to the last quarter of 2024, property sales registered an increase of 5.3%, reaching 181,625- the highest level since the third quarter of of 2007 with annual rise of 19.9%.

Foreign buyers claimed 14.1% of the market, very slightly down from the 14.2% in the previous quarter.

Over 25,600 sales were done with non-Spanish buyers led by the British (2,086), Germans (1,606), Dutch (1,530), Moroccans (1,505), French (1,298), Romanians (1,221), Italians (1,212) and Belgians (1,208).

Purchases by nationalities from the European Union accounted for 54.58%, the rest of Europe 19.6%, Africa 8.5%, Asia 7.8% and South America 5.07%.

Most of the buys were in the Balearic Islands (30%), the Valencian Community (28.3%), the Canary Islands (24.6%), Murcia (20.4%), Catalunya(15.6%) and Andalucia (14.2%).

In the first quarter of 2025, 119,026 mortgages on housing were registered- the third highest quarterly result since the first quarter of 2011.

The average amount of a mortgage granted per home purchase and sale was €156,128 in the first quarter.