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 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).

Key information about House Prices Growth

• Spain house prices grew 7.7% YoY in Feb 2025, following an increase of 6.6% YoY in the previous month.
• YoY growth data is updated monthly, available from Jan 2002 to Feb 2025, with an average growth rate of 3.6%.
• House price data reached an all-time high of 21.0% in Sep 2004 and a record low of -11.7% in Apr 2013.

Graph and download economic data for Real Residential Property Prices for Spain (QESR368BIS) from Q1 1972 to Q1 2025 about Spain, residential, housing, real, and price.

Residential Property Prices in Spain increased 12.29 percent in March of 2025 over the same month in the previous year. This dataset includes a chart with historical data for Spain Residential Property Prices.

The Spain Commercial Real Estate Market Report is Segmented by Property Type (Offices, Retail and More), by Business Model (Sales and Rental), by End-User (Individuals / Households, Corporates & SMEs and Others) and by Geography (Key City) (Madrid, Barcelona, Valencia and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

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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House prices in Spain have grown year-on-year since 2016 and 2023, increasing by almost 500 euros per square meter. In October 2023, the average house price per square meter reached 2,016 euros - almost as high as in 2007 before the global financial crisis hit and the market plummeted.

The Spain Residential Real Estate market is experiencing robust growth, with a market size of €166.01 million in 2025 and a projected Compound Annual Growth Rate (CAGR) of 6.90% from 2025 to 2033. This expansion is driven by several key factors. Increasing urbanization and population growth within Spain are fueling demand for housing, particularly in major cities and coastal regions. Furthermore, favorable government policies aimed at stimulating the housing market, including tax incentives and mortgage accessibility schemes, are contributing to this positive trend. The rise of remote work also plays a significant role, attracting both domestic and international buyers seeking properties in more desirable locations. However, the market is not without its challenges. Rising construction costs and a limited supply of land in prime areas are potential constraints on growth. Competition amongst developers, like Acciona Inmobiliaria, MetroVacesa, Spain Homes, Q21 Real Estate, KRONOS, Via Celere, AELCA, Neinor Homes, Pryconsa, and AEDAS homes, is intensifying, leading to innovative approaches in design, sustainability, and affordability. Looking ahead, the Spanish residential real estate sector is poised for continued growth, albeit at a potentially moderated pace compared to recent years. The increasing adoption of sustainable building practices and smart home technologies is shaping the market. The ongoing economic recovery in Spain, combined with continued investment in infrastructure, is expected to further bolster demand. Nevertheless, careful monitoring of inflation, interest rates, and potential regulatory changes remains crucial for accurately forecasting future market performance. The diversity of players, ranging from large national developers to smaller, regional firms, indicates a dynamic and competitive market landscape. The consistent demand, combined with thoughtful development strategies, is expected to ensure the continued flourishing of the Spanish residential real estate industry throughout the forecast period. Key drivers for this market are: 4., Increasing Number of High Net-Worth Individuals (HNWIs). Potential restraints include: 4., Rising Interest Rates. Notable trends are: Rise in International Property Buyers in Spain.

Spain residential real estate market is valued at EUR 1.6 trillion, driven by urbanization, foreign investment, and demand in Madrid and Barcelona, with sustained price growth.

The Spain residential real estate market size reached approximately USD 165.79 Billion in 2024. The market is projected to grow at a CAGR of 5.80% between 2025 and 2034, reaching a value of around USD 291.35 Billion by 2034.

The Spain Office Real Estate Market Report is Segmented by Building Grade (Grade A, Grade B and More), by Transaction Type (Rental and Sales), by End Use (Information Technology (IT & ITES), BFSI (Banking, Financial Services and Insurance), and More) and by City (Madrid, Barcelona and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Spain AI in Real Estate Market is valued at USD 1.2 billion, driven by AI adoption in property management, CRM, and predictive analytics, with key growth in Madrid and Barcelona.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

The Spain condominiums and apartments market, valued at approximately €XX million in 2025, is projected to experience robust growth with a Compound Annual Growth Rate (CAGR) exceeding 5.40% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, Spain's burgeoning tourism sector consistently demands increased accommodation options, driving investment in both new construction and renovations. Secondly, a growing urban population, particularly in major cities like Madrid and Barcelona, creates sustained demand for modern, comfortable housing. Thirdly, favorable government policies and incentives aimed at stimulating the real estate sector contribute to market dynamism. While challenges exist, such as fluctuating interest rates and potential construction material cost increases, the long-term outlook remains positive due to the strong underlying fundamentals of population growth and tourism. The market segmentation reveals significant regional variations. Barcelona and Madrid, as the largest cities, naturally dominate the market share, with Valencia, Malaga, and Catalonia also contributing substantially. Leading construction companies like Dragados Sociedad Anonima, Ferrovial Construccion SA, and Constructora San Jose SA play crucial roles in shaping the market landscape. Future growth will likely be influenced by evolving consumer preferences, including an increasing demand for sustainable and energy-efficient buildings, smart home technologies, and flexible living spaces. The market's continued success hinges on addressing challenges such as maintaining affordability in the face of rising construction costs and ensuring sustainable development practices. Recent developments include: Oct 2022: A build-to-rent (BTR) cooperation between Layetana Living and Aviva Investors was established in Spain. According to the statement, the collaboration between Aviva and the Spanish developer Layetana will construct a more than EUR 500 million (USD 531.20 million) residential portfolio, already securing its first development project. Based on the recommendation of international real estate consultancy Knight Frank, the partnership purchased a 71-unit residential building in Barcelona's Sants neighborhood. Construction is scheduled to begin at the end of 2023., Sept 2022: Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, expanded its services in the Valencian Community. It is now running with Maryana Kim directing a new office in Denia, in the northern section of the Costa Blanca. It was the fourth facility that Berkshire Hathaway HomeServices Spain opened in 2022.. Notable trends are: Rise in International Buyers in Spain.

Located in the Region of Valencia, the province of Castellon had the lowest property prices of all Spanish coastal areas, with an average price of 1,000 euros per square meter as of the first quarter of 2022. Castellon was also the Valencian province with the lowest average price of urban land. Also on the Mediterranean coast of Spain, Almeria ranked second on the list, with an average price per square meter of 1,100 euros, followed by another Valencian province, Valencia, which featured an average property price of just over 1,200 euros.

The other side of the coin: the most expensive coastal areas

Out of the four main islands that comprise the Balearic province, two are listed as the most expensive coastal areas of Spain. Ibiza and Formentera’s coasts ranked as the least affordable coasts in terms of property prices, with their average price per square meter amounting to nearly 4,000 euros. The Basque province of Gipuzkoa was the second most expensive coastal area.

Spain: the rebirth of a broken property market

After a long period of time in which Spain’s real estate prices increased sharply, the market was hit by the global financial crisis of 2007, making the Spanish property bubble collapse and damaging home value. It can be seen that real estate prices in Spain initiated a solid recovery in 2015, after the house price index fell to 96.27 index points in 2013. 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.

The Spain Commercial Real Estate market exhibits robust growth potential, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5.00% from 2025 to 2033. While the precise market size in 2025 is not provided, considering the presence of major players like Merlin Properties, Klepierre, and Via Celere, and the overall strength of the European commercial real estate sector, a reasonable estimate for the 2025 market size could be in the range of €25-30 billion. This substantial market value is driven by several factors, including increasing foreign investment, a growing tourism sector bolstering demand for hospitality and retail spaces, and ongoing urban regeneration projects in major Spanish cities. Furthermore, a strengthening economy and increasing demand for modern, sustainable office spaces are contributing to market expansion. However, challenges remain, including potential interest rate hikes impacting financing costs and lingering effects of global economic uncertainty. The market's segmentation reveals significant activity across various asset classes such as office, retail, and logistics, with a diverse range of developers and investors actively shaping the market landscape. The forecast period (2025-2033) promises sustained growth, though the pace might fluctuate due to external economic factors. The presence of numerous significant companies, including both national and international players, signifies a healthy and competitive market. Strategic partnerships and mergers & acquisitions are likely to play a considerable role in shaping the industry's future trajectory. The sustained growth outlook is contingent on addressing existing restraints such as regulatory hurdles and ensuring the availability of skilled labor in the construction sector. Further analysis focusing on specific segments within the market (e.g., office space in Madrid versus Barcelona) could yield even more granular insights into the market's dynamism and future prospects. In summary, the Spain Commercial Real Estate market presents compelling investment opportunities for businesses with a strong understanding of the sector's specific dynamics and risks. Key drivers for this market are: Government Initiatives Promoting Affordable Housing, Economic Growth and Rising Disposable Incomes. Potential restraints include: Shortage of Skilled Labor, Fluctuating Construction Materials Costs. Notable trends are: Increasing demand for logistics property driving the market.

House prices in Spain are forecast to fall in 2024, after increasing by *** percent in 2023. Nevertheless, prices are expected to pick up in 2025, with an increase of ***********. The Portuguese housing market, on the other hand, grew by *** percent in 2023, but was forecast to contract in the next two years.

Spain Housing Market Indicators: Mortgage Credit: YoY data was reported at -4.426 % in Mar 2017. This records an increase from the previous number of -4.518 % for Feb 2017. Spain Housing Market Indicators: Mortgage Credit: YoY data is updated monthly, averaging 14.836 % from Jan 1990 (Median) to Mar 2017, with 327 observations. The data reached an all-time high of 28.022 % in Jan 1990 and a record low of -14.302 % in Sep 2013. Spain Housing Market Indicators: Mortgage Credit: YoY data remains active status in CEIC and is reported by Bank of Spain. The data is categorized under Global Database’s Spain – Table ES.EB003: Housing Market Indicators.

Spain Real Estate and Affordable Housing Market valued at USD 300 Bn, driven by urbanization, government initiatives, and foreign investments in key cities like Madrid and Barcelona.