SPAIN’S property boom is gathering pace after mortgage approvals hit their highest March level in 16 years – despite soaring house prices nationwide.
New figures from Spain’s National Statistics Institute (INE) show that 46,661 mortgages were signed in March, up 9% on the same month last year and the highest March total since 2010.
The figures suggest demand for homes remains strong across the country – even as buyers face burgeoning prices.
The average mortgage reached €174,132 in March, up 10% on a year earlier and more than €16,000 higher than the average loan taken out in 2025.
In total, banks lent more than €8.1 billion to homebuyers during the month, representing a 20% increase compared with March last year.
The surge has been helped by lower borrowing costs, making mortgages more attractive and encouraging buyers to press ahead with purchases.
The average interest rate stood at 2.84% in March, remaining below the 3% mark for the 14th consecutive month.
Most buyers opted for fixed-rate mortgages, which accounted for almost two-thirds of all new home loans signed during the month.
The boom has been building steadily for some time, with March marking the 21st consecutive month in which mortgage approvals increased compared with the same period a year earlier.
The first three months of 2026 were also the busiest start to a year for mortgage lending since 2011, with more than 131,500 home loans signed between January and March.
Madrid, Catalunya and Andalucia were among the regions recording the highest numbers of new mortgages, reflecting strong demand in some of Spain’s most sought-after housing markets.
Experts say the current property rush differs from the boom that preceded Spain’s housing crash in 2008.
Back then, developers were building homes at a frantic pace and investors were snapping them up in the hope of making a quick profit.
Today, the problem is very different: there are simply not enough homes available to meet demand.
With housing supply struggling to keep up, and rents continuing to rise, competition among buyers is becoming increasingly intense.
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