The Spanish property market continues to be in full swing. In the third quarter of 2025, the upward trend continued strongly. The sun, sea and relaxed Spanish lifestyle have been attracting foreigners to the Spanish property market for years. But even for those who are hesitant to take the plunge, the latest figures send a clear signal: Spanish house prices rose sharply again in the third quarter of 2025. This makes it a particularly interesting time to get involved, whether you are looking for a second home, an investment or a new place to live under the Spanish sun. We take a closer look at this in the Analysis Real Estate Market Spain 2025 Q3.
General situation real estate market Spain in 2025 Q3
Across Spain, house prices rose by an average of +11.7% year-on-year and +3.0% quarter-on-quarter in Q3 2025. Even adjusted for inflation, this represents real growth of +8.6%. This continues the accelerated upward trend.
Demand remains high, partly thanks to stable employment and lower mortgage costs due to falling interest rates. The number of transactions also grew: in the first half of 2025, 7.6% more homes were sold and the number of mortgages increased by 18.7% (notaries) to as much as +38.3% according to the INE.
The market is clearly in a healthy growth phase, with strong demand and supply struggling to keep up.
Property prices in Spain by autonomous region
Prices have risen in all 17 regions, but at clearly different rates.
- Madrid stands out with a spectacular +19.4% year-on-year increase, the highest in the country. This reflects the capital’s appeal as an economic and cultural centre.
- The Balearic Islands (Mallorca, Ibiza, Menorca) follow with +14.8% – logical given the enormous international demand for second homes and luxury villas.
- Andalusia and the Valencian Community also showed double-digit growth, +12.7% and +8.6% respectively. Think of popular destinations such as Málaga, Marbella, Alicante and Valencia city.
In terms of price levels, there is considerable variation, with Madrid (€3,647/m²) and the Balearic Islands (€3,522/m²) at the top of the market. This is remarkably high when compared to other popular markets such as the Valencian Community (€1,627/m²) and Andalusia (€1,754/m²).
This shows that Spain offers options for different budgets: from affordable homes in the countryside to high-end properties in the most exclusive areas.
Property prices in Spain by province
At the provincial level, we see even sharper differences.
- The province of Madrid tops the list with an increase of +19.4% and an average of €3,647/m².
- Málaga, the hub of the Costa del Sol, recorded +15.3% and came in at €2,615/m².
- Alicante, popular with foreigners on the Costa Blanca, also saw +15.3% growth, to €1,758/m².
- Santa Cruz de Tenerife (+14.5%) and the Balearic Islands (+14.8%) are among the top growers.
It is striking that prices in some provinces are now higher than during the previous peak in 2007, including Madrid, Málaga, the Balearic Islands and Santa Cruz de Tenerife. This shows that the market has not only recovered, but has even risen further.
Real Estate Prices in the Major Cities of Spain
The capital cities traditionally attract a lot of attention, and rightly so: this is where the dynamics are greatest.
- Madrid leads the way with an annual increase of +19.5% and an average price of €4,664/m². This makes Madrid the most expensive city in Spain.
- Barcelona remains high at €4,156/m², but growth is more moderate: +7.4%.
- Valencia saw a remarkable increase of +17.1% and now stands at €2,519/m². It is a city that is becoming increasingly popular with international buyers.
- Seville and Malaga follow with €2,414/m² (+12.4%) and €2,731/m² (+11.3%) respectively.
In addition to the well-known large cities, there are other cities that are rising rapidly. Palma de Mallorca, Alicante and Santa Cruz de Tenerife all recorded double-digit growth.
Furthermore, prices in seven cities are now higher than during the peak in 2007, including Madrid, Valencia, Málaga and Palma. This confirms the strength of urban markets.
Conclusion Real Estate Market Spain 2025 Q3
The third quarter of 2025 shows that the Spanish housing market is in a strong growth phase. Prices are rising everywhere: in coastal areas, large cities and even inland.
What does this mean for you as a buyer?
- Strong increases in value: those who buy now will benefit from a market that is still booming.
- Broad support: not only hotspots are rising, but practically all regions. That means opportunities in many different places.
- Healthy foundations: the growth is not due to speculation, but to real demand and tight supply.
- International appeal: foreign buyers are playing an increasingly important role, which further stimulates demand.
In short: whether you dream of an apartment in Valencia, a villa on the Costa Blanca or an investment in Málaga, the figures show that now is an excellent time to buy. In many cases, waiting means paying more.
Would you like to know more about investing in Spain or discover which region best suits your needs? Feel free to contact us. Our team is ready to help you personally.
Source: TINSA
