A BOOM in house prices is not putting off buyers according to figures for last year compiled by Spain’s registrars.
Six properties were bought every minute- a third in cash- despite average prices rising by 10% across the country.
The number of sales rose to levels not seen since 2008 when the property bubble burst, with 705,357 transactions- 10.7% more than in 2024.
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Last year’s prices saw an average increase of 9.5% compared to 2024 with a home costing an average of just over €171,000.
Despite property supply being unable to meet demand, 505,741 new mortgages were approved but still far off the historic high of 2006, when 1.3 million were registered.
But the College of Registrars says that 28.3% of sales in 2025 were totally paid for by cash.
So despite high prices, the registrars put the boom down to the shortage of supply, the strength of foreign demand (which already accounts for 13.5% of purchases) and an active demographic that continues to create new households.
They add that the stabilisation of interest rates at around 2.97% has given a psychological respite to buyers, who mostly (63.95%) have fixed rate mortgages.
The Registrars latest report published on Thursday looked at the fourth quarter of 2025 and concludes that house prices were 29.3% above the peaks of 2007.
79.35% of the operations correspond to second-hand housing, which continues to be the main driver of the property market.
The average price in Spain has been consolidated at €2,354/m², a record high, but with drastic regional variations.
The Madrid region leads the ranking of prices with €4,241/m², followed closely by the Balearic Islands, with €4,101/m².
Split into capitals, San Sebastian (€6,107/m²), Madrid (€5,283/m²) and Barcelona (€4,800/m²) are the most expensive cities in the country.
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