Spanish Property Prices at Record Highs

Key takeaways

• In September 2025, home sales in Spain rose 5% year-on-year, ending two months of declines.

• The average sale price reached €1,940 per m², the highest recorded by the notaries’ data.

• Mortgage activity also increased: mortgage signings grew by 11.4% compared to September 2024.

Below we break down what these numbers mean — and what to watch out for if you are buying or selling a property.

🟦 Market Recovery: More Transactions

September saw a rebound in housing transactions across Spain: a total of 58,845 purchases completed. This marks a 5% growth compared to September 2024, reversing declines from the previous two months.

The increase affected both apartments (“flats”) and standalone houses:

But the recovery was uneven across Spain. Regions with the largest growth included:

• Castilla y León (+21.4%)

• La Rioja (+21.2%)

• Murcia (+18.5%)

• Extremadura (+18.4%)

• Aragón (+14.8%)

• Andalucía (+11.0%)

Some other regions saw smaller increases — and a few even slight declines.

What this means for clients: If you are thinking of selling, demand seems to be rising again — but regional differences matter. It’s wise to assess local market conditions rather than rely on national trends alone.

🟩 Prices at Historic Highs

This upturn in demand came hand in hand with rising prices. The average price per square metre for homes sold reached €1,940/m², a record level according to notaries’ data.

Breaking down by property type:

• Flats/multi-family dwellings: ~ €2,230/m² (+7.8% year-on-year)

• Single-family homes: ~ €1,466/m² (+5.4% year-on-year)

This represents the 26th consecutive year-on-year increase in average sale price — a clear indicator of a strong market trend.

What this means for clients: For buyers, expect higher budgets — not just because demand has increased, but also because prices continue to rise. For sellers, this is a favourable environment to consider selling, especially if the property fits buyers’ current preferences.

🏦 Mortgage Activity Picks Up

In line with rising sales, the signing of new mortgages marked double-digit growth. In September there were 29,614 mortgage contracts, a jump of 11.4% compared to the same month in 2024.

The average loan amount rose too — reaching €183,118, the second-highest on record (only behind July 2025).

For many buyers, financing continues to play a central role: in purchases with a mortgage, the loan amounts to roughly 72.5% of the purchase price.

What this means for clients: Financing remains widely used — but borrowers should be aware that the size of loans is climbing, corresponding with the rising value of properties.

✅ Implications for Buyers and Sellers

For Sellers / Investors:

• The current market offers historically high sale prices and renewed demand — a good window to sell or divest.

• Consider the property type: flats are commanding stronger price growth versus single-family homes.

• Regional variations are relevant — success may depend on area-specific demand.

For Buyers:

• Plan for higher purchase prices and correspondingly larger mortgage requirements.

• Act fast: rising demand and prices might continue pushing up costs.

• Seek professional advisory — especially in a market showing strong growth and variability.