HOUSE prices in Spain rose by 12.9% last year – the highest figure since early 2007 when costs went up 13.1%.
The numbers are far higher than the 7% hike for 2025 projected in a September study produced by Barcelona real estate agency, Donpiso.
Data was compiled by the National Statistics Institute(INE) using information supplied by the General Council of Notaries.
READ MORE:
- Property asking prices in this Costa Blanca coastal haven jump by 25% in a year – as all Spain’s costas see unbelievable gains
- Demand in Spain is going through the roof – but a massive one in five of the country’s most in-demand property hotspots are located in just one province
Prices of new-build homes rose by 11.2% compared to 2024, while second-hand properties rose higher at 13.1%.
It also means there have 12 consecutive years of property price hikes in Spain.
In the fourth quarter of 2025, all regions reported price rises, with the biggest in Castilla y Leon (15.3%), Aragon (14.4%), Murcia (14.4%), La Rioja (14.4%), Madrid (14.2%) and Galicia (14.1%).
More modest increases were recorded in Catalunya (10.9%), the Canary Islands (11%) and Navarre (11.4%).
Ferran Font from real estate portal Pisos.com said: “We are facing a particularly dynamic market, driven by increasingly active demand which cannot respond to the necessary pace and the context of falling interest rates.”
“In the short term, it is difficult to anticipate a change in trend, as none of these three factors – demand, supply and financial conditions – look set to see significant changes in the coming months,” Font added.
The lack of new housing stock has meant that seven out of ten transactions in 2025 have been second-hand homes- causing prices to significantly rise.
Ironically, new-build homes have become less expensive in the last year
Miguel Angel Gomez Huecas, president of the Federation of Associations of Real Estate Companies told the El Pais newspaper: “We cannot continue like this,”
“Until administrations apply urgent measures to increase the residential supply, price rises will not stop, as the population will continue to grow exponentially in the coming years.”
“We will end up gradually settling into a residential model of substandard housing, something that is absolutely unacceptable in any country that intends to consider itself developed”, he stated.
Click here to read more Property News from The Olive Press.
