Property prices in Spain will climb by 7% in 2025 and push the national average above €1,900 per square metre, according to estimates by real estate network donpiso.
The increase is being fuelled by easing interest rates, strong demand and a shortage of new-build housing.
In major cities, the squeeze will be even more acute, with average prices expected to top €3,900 per square metre.
Donpiso predicts that around 800,000 sales will be completed in 2025, representing an almost 25% jump compared with the 641,919 recorded in 2024.
The bulk of activity will be concentrated in Madrid, Catalonia, Valencia and Andalucia, but northern regions are also expected to perform strongly, driven by residential tourism, investor appetite and a recovery in domestic demand.
According to Emiliano Bermudez, deputy managing director of donpiso, Spain’s housing market remains underpinned by a solid labour market and improving financing conditions.
‘We don’t anticipate a bubble, but rather a year of steady growth, with the strongest activity in well-connected urban areas,’ he said.
Bermudez added that rising costs in city centres are pushing buyers towards mid-sized cities and metropolitan belts, particularly the first and second rings around major hubs.
Who is buying in 2025?
The dominant profile remains families and younger buyers upgrading their primary home with the support of a mortgage.
At the same time, property as a safe-haven investment against inflation is making a gradual comeback.
The mortgage market itself looks increasingly stable, with the Euribor hovering near 2% and banks offering more competitive lending terms.
The affordable housing problem
Despite the positive outlook, donpiso warns that a lack of affordable housing and the absence of structural reforms in urban planning and construction continue to weigh heavily on the market.
‘The challenge lies in meeting demand with accessible prices, available land, and legal certainty for property owners,’ Bermudez concluded.
Andalucia prices surge – especially in Malaga
The cost of buying a home in Andalucia has continued to surge into 2025, with several sources confirming sharp rises across the region and a widening gap between coastal hotspots and inland areas.
According to data from Idealista, the average cost of a home now stands at around €2,539 per square metre, representing a 15.2% increase compared to last year.
The sharpest increases are being recorded in Malaga province, which remains the most expensive market in the region.
Across the province, average prices have reached €3,385 per square metre, a rise of more than 9% compared to 2024.
Malaga city itself now averages €3,830 per square metre, climbing almost 15% over the past year, making it the sixth most expensive city in Spain.
By contrast, other provinces show more moderate growth. Cadiz averages €1,756 per square metre, an increase of 7.7%, while Sevilla city has reached €2,313 per square metre, up more than 9%, with the surrounding metropolitan area averaging €1,544.
Granada has seen an increase of just over 10%, Almeria almost 9.5%, while Jaen is the only province in Andalucia to register a slight decline of 0.4%.
Luxury enclaves along the Costa del Sol continue to set their own pace. In Marbella’s Nueva Andalucía district, some of the highest prices in Spain are being recorded, with Puerto Banus and central Nueva Andalucía both around €6,500 per square metre, and Las Brisas close to €5,800.
Read more Andalucia news at the Spanish Eye.
