PROPERTY prices in Spain increased by an average of 7.5% in the first three months of 2025, new figures have revealed.
The average price, including new and existing homes, now sits at €1,902 per square metre, although there are large variations depending on location.
According to the data compiled by Tinsa, and reported by Efe, ‘bubble prices’ have now been exceeded in the cities of Palma de Mallorca, Malaga, Madrid and Santa Cruz de Tenerife.
Tinsa said the price increase in real terms, disregarding inflation, was 4.7%, up from the 2.5% boost seen during the same period last year.
It added that interest rate cuts have seen a rise in demand, alongside mortgage-free purchase, which accounted for between 49 and 54% of all sales.
Where are prices growing the fastest?
Unsurprisingly to those in the know, out of all the regions, the Balearic Islands saw the sharpest spike in property prices in the first quarter of this year, with a surge of 12.8%.
Ibiza and Mallorca have long been among the most expensive real estate markets in Spain.
They were followed by Madrid, which saw a 12.6% increase and the northern region of Cantabria (12.2%).
When studied at a provincial level, those with the biggest price increases were Soria (16.5%), Santa Cruz de Tenerife (13.2%), the Balearic Islands (12.8%), Madrid (12.6%), Malaga (12.5%), Cantabria (12.2%), Alicante (10.1%) and Valencia (10.1%).
The most expensive city in Spain to buy a property is now San Sebastian, beating out Madrid and Barcelona.
San Sebastian, the capital of the the Gipuzkoa province in the Basque Country, has an average square metre cost of €4,500, followed by Madrid (€4,285) and Barcelona (€3,998).
