The Spanish property market suffered its sharpest fall in home sales for more than two years in July, new figures have revealed.

Around 60,050 homes changed hands during the month, representing a 7.7% drop compared with July 2025, according to provisional data from the College of Property Registrars.

Despite the nationwide slowdown, Andalucia remained Spain’s busiest property market, recording more than 12,250 home sales during the month.

When all types of property are included, some 118,000 transactions were registered across Spain in July, down 4.7% year-on-year.

Andalucia alone accounted for more than 22,500 of those transactions.

Most of Spain records falling sales

Only three autonomous communities recorded year-on-year increases specifically in home sales during July.

Navarra bucked the national trend spectacularly with an increase of 26.4%, followed by Castilla y Leon at 6.2% and Castilla-La Mancha at 2.4%.

At the opposite end of the table, Cantabria recorded the steepest fall at 17.6%.

The Balearic Islands, which is one of Spain’s most expensive and internationally popular property markets, saw home sales tumble by 15.6%.

Melilla and Asturias both recorded falls of 15.5%.

Looking at transactions involving all types of property, rather than homes alone, just four regions recorded increases: Galicia (+3.2%), Murcia (+3%), Castilla y Leon (+2%) and Navarra (+0.4%).

The biggest falls were recorded in Melilla (-23.4%), the Balearic Islands (-15.4%), Aragon (-11%) and the Basque Country (-10.5%).

Andalucia remains Spain’s property powerhouse

In absolute terms, the country’s biggest property markets continued to dominate despite the overall decline.

Andalucia, Cataluña, the Valencian Community and Madrid each recorded more than 11,000 property transactions during July.

But Andalucia was comfortably out in front with more than 22,500.

The same four regions also occupied the leading positions for residential sales, with Andalucia recording more than 12,250 home purchases.

The figures underline the sheer size of the Andalucian property market, which includes international hotspots such as the Costa del Sol as well as the major cities of Malaga and Sevilla.

Mortgages also fall

The slowdown was not confined to property transactions.

More than 57,400 mortgages were registered across Spain during July, down 0.6% compared with the same month last year.

Of those, just under 43,300 were mortgages secured against homes, representing a 4.2% year-on-year decline.

It was only the second annual fall in residential mortgage numbers recorded this year, following a previous decline in May.

There were significant regional differences.

The Balearic Islands recorded the strongest increase in home mortgages at 24.9%, followed by Castilla y Leon (+9.2%) and Asturias (+7.1%).

Meanwhile, home mortgages plunged by 32.3% in Cantabria, 23.7% in the Canary Islands, 22.1% in Aragon and 21.4% in La Rioja.

Cataluña, Andalucia, Madrid and the Valencian Community each recorded more than 7,000 mortgages across all property types.

Cataluña recorded the largest number, with more than 11,100 mortgages, of which just under 8,700 were secured against homes.

The July figures are provisional and measure transactions entered into Spain’s property registries, meaning they reflect deals reaching the registration stage rather than necessarily purchases agreed during that same month.

Read more Andalucia news at the Spanish Eye.