According to the “Report on trends in the market of new and used housing” prepared by the appraisal company Sociedad de Tasación, the average price of residential property in Spain continues to grow. By the end of 2025, it increased by 7.4% year on year and reached 2,085 euros per square meter, the highest since December 2007. In the future, despite the projected slowdown in growth rates, prices will continue to rise – by approximately 7.2% by the middle of this year.

In turn, the volume of purchase and sale transactions will remain at a high level (at the level of the previous year), without forecasts for additional significant growth. Such dynamics will depend on interest rates, the possibility of expanding the supply of affordable housing and the general economic situation – factors that will determine the balance of supply and demand in the residential real estate market.

The market remains highly active

Market activity remains at a high level, but is beginning to show certain limitations. These dynamics are particularly noticeable in areas where demand pressure on available supply is greatest, continuing to drive up prices while making housing more difficult to access.

The largest annual increase in housing prices (+8.8%) and the highest price (3422 euros/m2) is demonstrated by the Autonomous Community of Madrid. It is followed by the Balearic Islands (2994 euros/m2) and Catalonia (2872 euros/m2).

At the opposite pole is Extremadura, where the lowest level is recorded (1024 euros/m2). In general, in all autonomous communities, average prices exceed 1000 euros/m2, which reflects the general rise in housing prices throughout the country – especially pronounced in those areas where there is the greatest demand.

Housing affordability in Spain worsens

According to the report, at the end of the first quarter of 2026, a person would need 7.8 years of full salary to purchase an average home in Spain. This represents quarterly growth of 2% and annual growth of 3.6%.

In turn, the affordability index is 84%, which reflects the deterioration in the purchasing power of households. The report also shows a slight quarterly decline (-0.7%) in the real estate sector confidence index, which stood at 58.7% by March 2026, down from 59.2% in the previous period.

Read also: Spain’s home sales hit their highest level since 2007.