Lorraine Williamson
Spain property prices 2025 have ended at a fresh record, with the pace of growth now the sharpest since the pre-2008 boom years. The latest Idealista index puts the national average for second-hand homes at €2,639 per square metre, after a 16.2% year-on-year rise at the end of 2025.
That jump is not just a statistical milestone. It is a lived reality for would-be buyers facing fewer listings, tougher competition, and the sense that the market is moving faster than wages.
A record rise, driven by the late-2025 surge
Idealista’s data shows prices were already climbing quickly in Q3 (up 15.3% year-on-year), before accelerating again in Q4. In just the final three months of the year, prices rose 4.8% quarter-on-quarter.
It matters that this is an asking-price index, built from advertised listings and using the median of valid ads. That makes it a useful read on seller expectations — and on what buyers are up against — even if final sale prices can differ.
The supply problem isn’t new, but the backlog is.
Idealista’s spokesperson, Francisco Iñareta, points to a long hangover from the financial crisis: Spain never regained the homebuilding pace it had before 2008. He argues the country is still carrying “a huge burden” of under-production, and cites a housing deficit estimate of around 700,000 homes.
Other analysts echo the same underlying story: household formation has outpaced construction, and high-demand areas have absorbed the shock first. Caixabank Research, for instance, has highlighted strong demand into 2026 alongside an ongoing supply constraint.
Where prices are rising fastest
The headline figure hides a very uneven map. In 2025, the steepest regional rises were concentrated in parts of the south and east, plus Madrid.
-
Region of Murcia:
+23.6% -
Community of Madrid:
+21% -
Andalucia:
+18.9% -
Cantabria:
+18.6% -
Valencian Community:
+17.3%
At the other end, growth was far calmer — though still positive. Navarre saw the smallest rise (+2.4%), followed by Galicia (+4.9%) and Extremadura (+5%).
The most expensive places to buy — and the new “normal”
By region, the Balearic Islands remain in a league of their own at €5,160/m², followed by Madrid (€4,562/m²) and the Basque Country (€3,421/m²).
Among provincial capitals, San Sebastián tops the table at €6,450/m², ahead of Madrid (€5,820/m²) and Barcelona (€5,144/m²).
On the Costa del Sol, Málaga province continues to sit among Spain’s priciest markets, with Idealista placing it at €4,047/m² — higher than Barcelona province in the same ranking.
Why this isn’t 2008 — but still hurts
The comparison with the bubble years is tempting, because the speed now looks familiar. But the mechanics are different. The last crisis was turbocharged by loose credit and overbuilding; today’s pressure is more about scarcity, with demand chasing a limited number of homes.
That does not make the situation easier for households. It simply shifts the pain: buyers need larger deposits, many younger people are priced out, and renters feel the knock-on effect as more people stay in the rental market for longer. (Idealista’s own rental reporting has also flagged record levels in advertised rents.)
The big questions for buyers in 2026
Three things will shape what happens next.
First, new supply: whether planning and building actually speed up in the places where demand is strongest. Second, financing conditions: lower interest rates can bring more buyers back into the market, even as affordability worsens.
Third, policy: from land-use reforms to efforts to expand affordable housing, the test will be whether measures land on the ground quickly enough to matter — not just in headlines, but in actual completions.