Property prices in Spain have surged by 13.1% year-on-year in the final quarter of 2025, new figures show.
That is the sharpest fourth-quarter increase since 2006, just before the last housing bubble.
The data, from Tinsa, Spain’s largest valuation firm, show that even after stripping out inflation, prices rose by around 10%, marking the strongest annual quarterly increase in nearly 20 years.
Following the devastating affects of the pandemic, price rises rebounded and peaked at 7.7% in 2022, before slowing to around 4%.
That trend reversed abruptly from the second quarter of 2025, when growth surged back into double digits and intensified sharply towards year-end.
Tinsa attributes the sustained price pressure to a combination of factors: a resilient labour market, households regaining purchasing power after the inflation shock, lower and stabilised mortgage costs following ECB rate cuts, continued investment demand and the creation of new households – all colliding with a chronic shortage of supply.
The average price now stands at €2,091 per square metre, just 3.3% below the peak of 2007 in nominal terms.
Since the market low of 2015, prices have risen by almost 64%. Adjusted for inflation, however, values remain 33% below the pre-crisis peak, though 29% above the 2015 trough.
Regional disparities widen
Price growth is widespread across Spain but far from uniform. All autonomous communities recorded increases, ranging from 1.5% to 19.6%, with 11 regions posting rises above 10%.
Growth is strongest in Madrid, followed by the Valencian Community and Cantabria, both close to 16%.
In absolute terms, the highest prices are found in Madrid (€3,799/m²), the Balearic Islands (€3,644) and Catalonia (€2,549).
At the lower end sit Extremadura (€976), Castilla-La Mancha (€1,164) and Castilla y Leon (€1,274).
At provincial level, the acceleration is even clearer. In 32 of Spain’s 52 provinces, price growth intensified during the last quarter, and in 21 provinces annual increases exceeded 10%, compared with just 13 in the previous quarter.
Pressure is strongest around Madrid, along the Mediterranean coast, in the islands and parts of northern Spain.
Capital cities under strain
Some 20 provincial capitals recorded annual increases above 10%, with Madrid topping the table at 20.9%.
Barcelona accelerated to 8.3%, while strong gains were also seen in Valencia, Malaga, Alicante, Palma, Santander and Granada.
Some 10 cities have now exceeded their 2007 price peaks in nominal terms, including Madrid, Malaga, Valencia, Palma and Alicante. Adjusted for inflation, all remain below those levels, though Palma is close.
Affordability concerns grow
Rising prices are feeding directly into affordability pressures. Nationally, the average household needs to devote around 34.5% of disposable income to buying a home – above the 30% affordability threshold set out in Spain’s housing law.
That national average masks sharp imbalances. Madrid (56%), Malaga (55%), Barcelona (53%), Sevilla (46%) and Valencia (45%) all exceed critical levels. Only Zaragoza, at 30%, remains within more sustainable limits.
2026 outlook
Looking ahead, Tinsa expects prices to continue rising in 2026, albeit at a slower pace of between 5% and 10%, driven by persistent supply shortages and only gradual additions to housing stock.
New-build homes are already at record levels. According to Sociedad de Tasacion, prices for newly built property rose 8.9% year-on-year by December, reaching an all-time high of €3,298 per square metre.
Catalonia, Madrid and the Basque Country lead in absolute prices, with several other regions – including Andalusia and the Balearics – also hitting new highs.
