After a long period of steady increase in real estate prices in Spain, the market was hit by the global financial crisis of 2007, resulting in the burst of the Spanish property bubble. House prices have since picked up and in 2023, the average square meter price reached 2,809 euros - just slightly below 2008 levels. Though prices have risen across the whole country, some regions, such as the Balearic Islands, Catalonia, Madrid, and Andalusia, experienced faster growth than others. Additionally, the gap between newly built and existing home prices has widened. Spain’s real estate market behind others The property market has made great progress, but it is still far off the rest of its European counterparts, and it is positioned, in fact, at the bottom of the European list of the EMF’s house price index, which is led by Czechia and Portugal. Supply is a major factor influencing the price development. Many European countries suffer housing shortages due to sluggish construction activity, and Spain is no exception. In 2022, ranked among the countries with the lowest number of residential construction starts per 1,000 citizens in Europe. Buying vs renting As happens with many other countries, the affordability of buying a home and renting will differ considerably dependent on the area. In 2022, the average Spanish citizen needed between five and 18 years to purchase an average priced property in their region with their full salary, with Murcia and La Rioja being the most affordable regions. The house price to rent index shows that house price growth has been much faster than rental growth. That is good news for homeowners whose homes appreciate over time, but an issue for renters who are yet to purchase a property.

House prices in Spain have risen year-on-year since 2013. The house price index measures the development of house prices, with 2015 chosen as a base year when the index value was set to 100. In 2023, the index stood at 147.28 index points, meaning that since 2015, prices have risen by almost 42 percent. Overall, newly built homes saw appreciated faster than existing homes. Catalonia, the Balearic Islands and Madrid were the Spanish regions where prices of both new and existing housing have risen the most in recent years.

Housing Index in Spain increased to 2094 EUR/SQ. METRE in the second quarter of 2025 from 2033 EUR/SQ. METRE in the first quarter of 2025. This dataset provides the latest reported value for - Spain House Prices - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The house price index (HPI) in Spain has increased steadily since 2013, reaching a 10-year record value in 2023. In that year, the HPI reached a value of 167.33 index points for newly built and 144.19 index points for existing homes, meaning that house prices for new construction have risen faster than for existing homes. An index value of 160 suggests that house prices have risen by 60 percent since 2015 - the base year of the index. Catalonia, the Balearic Islands and Madrid were the Spanish regions where prices of both new and existing housing have risen the most in recent years.

The average square meter price of new residential real estate in Spain was the highest in Catalonia and the Community of Madrid in 2024. In the second quarter of the year, both regions boasted home prices of over 4,000 euros per square meter, with Catalonia at 4,662 euros and the Community of Madrid at 4,493 euros. That was substantially higher than the average for the country, which amounted to 2,930 euros per square meter. Overall, house prices in Spain have been on the rise since 2016.

The house price index (HPI) for new and existing homes in the Basque Country, Spain, has increased steadily since 2013, reaching a 10-year record value in 2023. In that year, the HPI reached a value of ****** index points for newly built and ****** index points for existing homes, meaning that house prices for new construction have risen faster than for existing homes. These figures were below the average for the country. An index value of *** suggests that house prices have risen by ** percent since 2015 - the base year of the index.

The house price index (HPI) for new and existing homes in Catalonia, Spain, has increased steadily since 2013, reaching a 10-year record value in 2023. In that year, the HPI reached a value of ***** index points for newly built and ****** index points for existing homes, meaning that house prices for new construction have risen faster than for existing homes. These figures were higher than the average for the country. An index value of *** suggests that house prices have risen by ** percent since 2015 - the base year of the index.

The house price index (HPI) for new and existing homes in Andalusia, Spain, has increased steadily since 2013, reaching a 10-year record value in 2023. In that year, the HPI reached a value of ****** index points for newly built and ****** index points for existing homes, meaning that house prices for new construction have risen faster than for existing homes. These figures were around the average for the country. An index value of *** suggests that house prices have risen by ** percent since 2015 - the base year of the index.

The Spain Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Business Model (Sales and Rental), Mode of Sale (Primary and Secondary) and Key Cities (Madrid, Barcelona, Catalonia, Valencia Community, Andalusia – Malaga & Costa Del Sol and Rest of Spain). The Market Forecasts are Provided in Terms of Value (USD).

The Spain residential real estate market size was USD 145.18 Billion in 2022 and is likely to reach USD 264.67 Billion by 2031, expanding at a CAGR of 6.9% during 2023–2031. The growth of the market is attributed to the increase in construction as well as population.

Spain’s real estate market is posting a positive trend, especially in terms of demand. The revival in house sales was high in 2021. For instance, 468,000 transactions were completed by October 2021, a growth of 35.9% compared to 2020 and up by 8.3% on 2019. The activity in the residential sector was highest since 2008. A large part of this revival in demand has come from a reduction in pent-up demand and the forced savings accumulated during the months of lockdown and severely restricted travel, combined with highly favorable financing conditions, which make it more attractive to buy and invest in real estate assets. The residential sector is therefore on track to close 2021 with 545,000 sales in the year as a whole.

Before the pandemic began, the residential real estate market in Spain was growing at a healthy pace, which was then dented by Covid-19 as the construction of housing units came down. However, in 2021, the market was back on track with increase in construction.



As per the latest data from the Appraisal Society, it indicates that the price of new housing has remained stable, in a context of increased sales and improvement in economic indicators. The average price of new homes has grown 0.4% in Spain over the last 12 months to Euro 2,482 (approximately USD 2812) per square meter. This slight increase has been generalized and has been registered in 16 of the 17 autonomous communities.



The economic consequences of the Covid crisis made a dent in the real estate market, and has reflected in the 16.7% collapse of sales in Spain in 2020 to 419,898 transactions. As a result, experimental ways of life are introduced into the real estate market to compensate for the lack of social interaction between people.

Spain Residential Real Estate Market Trends, Drivers, Restraints, and Opportunities

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Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, notably rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated jump of 1.2% in 2025 to €207.6 billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing over the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated (2021-2023), being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent prices to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this has started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, PropTech—technology-driven innovations designed to improve and streamline the real estate industry—will force estate agents to adapt, shaking up the traditional real estate sector. A notable application of PropTech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

Graph and download economic data for Consumer Price Index: OECD Groups: Housing: Housing Excluding Imputed Rentals for Housing for Spain (ESPCPGRHO02GPM) from Feb 1961 to Nov 2023 about imputed, Spain, rent, CPI, price index, indexes, and price.

Spain SSPI: Annual: Real Estate Activities data was reported at 112.001 2021=100 in 2024. This records an increase from the previous number of 108.855 2021=100 for 2023. Spain SSPI: Annual: Real Estate Activities data is updated yearly, averaging 106.703 2021=100 from Dec 2021 (Median) to 2024, with 4 observations. The data reached an all-time high of 112.001 2021=100 in 2024 and a record low of 100.000 2021=100 in 2021. Spain SSPI: Annual: Real Estate Activities data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.I037: Services Sector Price Index: 2021=100.

Information on each housing rental advertisement each of the Spanish province capitals as of April 23.

Spain - Severe housing deprivation rate: Tenant, rent at market price was 7.00% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Spain - Severe housing deprivation rate: Tenant, rent at market price - last updated from the EUROSTAT on September of 2025. Historically, Spain - Severe housing deprivation rate: Tenant, rent at market price reached a record high of 8.90% in December of 2020 and a record low of 2.80% in December of 2017.

Spain ES: Consumer Price Index (CPI): Local Source Base Year: All Items data was reported at 112.219 2021=100 in 2023. This records an increase from the previous number of 108.391 2021=100 for 2022. Spain ES: Consumer Price Index (CPI): Local Source Base Year: All Items data is updated yearly, averaging 42.629 2021=100 from Dec 1955 (Median) to 2023, with 69 observations. The data reached an all-time high of 112.219 2021=100 in 2023 and a record low of 1.737 2021=100 in 1955. Spain ES: Consumer Price Index (CPI): Local Source Base Year: All Items data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Spain – Table ES.OECD.MEI: Consumer Price Index: COICOP 1999: OECD Member: Annual. The index measures monthly changes in the general level of prices of goods and services bought by private households for consumption purposes. Types of prices: Retail prices, including sales taxes and other taxes, and price reductions (since January 2002) but excludes special offers and deferred payments. Price collection methods: Some prices are centrally collected (for cars, petrol, tobacco, telephone service, etc.) but most of them are collected by personal visits to retail outlets. Treatment of Rentals for Housing: Only Actual rentals for housing are included. No imputed prices are considered. Treatment of Owner-Occupied Housing: Excluded. Treatment of missing prices: When a price observation is temporarily unavailable in a given month, its price is imputed basing on the price movement of similar products within the same geographic area. If the price is permanently unavailable then a replacement item is selected. Treatment of quality changes: Several techniques are used to make a quality adjustment when a qualitative difference between the new and the old variety is observed. Examples of the quality adjustment methods used for the CPI are the Total quality adjustment, Adjustment for identical quality, Imputed prices, Production costs, Overlapping prices, Hedonic techniques and other types of methods. Introduction of new items: Since January 2002 the list of products is reviewed every year. Seasonal items: Fresh fruit and vegetable prices are collected only for the months in season. They have a different monthly basket and item weights vary from month to month. Prices and weights are combined in a moving average of the last twelve months.; Index series starts in January 1954

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, notably rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated jump of 1.2% in 2025 to €207.6 billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing over the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated (2021-2023), being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent prices to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this has started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, PropTech—technology-driven innovations designed to improve and streamline the real estate industry—will force estate agents to adapt, shaking up the traditional real estate sector. A notable application of PropTech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

House prices in the UK rose dramatically during the coronavirus pandemic, with growth slowing down in 2022 and turning negative in 2023. The year-on-year annual house price change peaked at 14 percent in July 2022. In April 2025, house prices increased by 3.5 percent. As of late 2024, the average house price was close to 290,000 British pounds. Correction in housing prices: a European phenomenon The trend of a growing residential real estate market was not exclusive to the UK during the pandemic. Likewise, many European countries experienced falling prices in 2023. When comparing residential property RHPI (price index in real terms, e.g. corrected for inflation), countries such as Germany, France, Italy, and Spain also saw prices decline. Sweden, one of the countries with the fastest growing residential markets, saw one of the largest declines in prices. How has demand for UK housing changed since the outbreak of the coronavirus? The easing of the lockdown was followed by a dramatic increase in home sales. In November 2020, the number of mortgage approvals reached an all-time high of over 107,000. One of the reasons for the housing boom were the low mortgage rates, allowing home buyers to take out a loan with an interest rate as low as 2.5 percent. That changed as the Bank of England started to raise the base lending rate, resulting in higher borrowing costs and a decline in homebuyer sentiment.

Spain Consumer Price Index (CPI): Weights: Housing: Other Services: Collection of Waste and Sewage (WS) data was reported at 2.359 Per 1000 in 2025. This records an increase from the previous number of 2.312 Per 1000 for 2024. Spain Consumer Price Index (CPI): Weights: Housing: Other Services: Collection of Waste and Sewage (WS) data is updated yearly, averaging 1.663 Per 1000 from Dec 2017 (Median) to 2025, with 9 observations. The data reached an all-time high of 2.485 Per 1000 in 2023 and a record low of 1.534 Per 1000 in 2019. Spain Consumer Price Index (CPI): Weights: Housing: Other Services: Collection of Waste and Sewage (WS) data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.I017: Consumer Price Index: Weights.

Spain Consumer Price Index (CPI): Weights: Housing: Electricity, Gas and Other Fuels: Liquid Fuels data was reported at 3.101 Per 1000 in 2025. This records an increase from the previous number of 3.094 Per 1000 for 2024. Spain Consumer Price Index (CPI): Weights: Housing: Electricity, Gas and Other Fuels: Liquid Fuels data is updated yearly, averaging 5.114 Per 1000 from Dec 2017 (Median) to 2025, with 9 observations. The data reached an all-time high of 6.210 Per 1000 in 2022 and a record low of 2.929 Per 1000 in 2023. Spain Consumer Price Index (CPI): Weights: Housing: Electricity, Gas and Other Fuels: Liquid Fuels data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.I017: Consumer Price Index: Weights.