Alex Trelinski
NEW mortgages approved in Spain have soared to levels not seen since the first half of 2011.
Figures released on Wednesday by the National Institute of Statsitics showed 243,257 home mortgages were granted between January and June this year.
That was a rise of 25% compared to the same period in 2024.
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It’s the biggest number since the first six months of 2011, when the real estate market was trying to recover after the property bubble bursting some three years earlier.
Maria Matos, from property portal Fotocasa, told El Pais that ‘credit is cheaper and improves financing conditions’, which is boosting demand for housing.
“2025 is shaping up to be one of the best years for the mortgage market”, Matos added.
Taking June 2025 alone, over 41,800 mortgages were approved- up 31.7% on a year earlier.
The average amount of mortgages granted rose by 15.5% to a figure of €168,363.
Two factors may be behind the mortgage upturn.
Firstly potential buyers may be feeling that now is the time to buy as they see little chance of property price rises slowing down.
The second reason is down to lower interest rates as a result of the falling Euribor index.
The average interest rate on a mortgage stood at 2.99% in June with a consistent level around the 3% mark not recorded since early 2023.
In the first six months of the year, there were 357,533 home sales in Spain- the highest figure since 2007.
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