The Spanish real estate market in 2025 is entering a phase of stabilization with residential property prices growing at a moderated pace. Nationwide, prices have increased by approximately 4%, indicating a slowdown from the rapid appreciation seen in previous years.
Madrid and Barcelona Lead in Price Levels
The capital city of Madrid and Barcelona continue to have the highest real estate prices in the country, with averages exceeding €4,200 and €4,100 per square meter respectively. In contrast, cities such as Valencia and Seville maintain more affordable price points, with averages below €2,400.
Challenges in Urban Centers
Despite steady demand, the availability of new housing in key urban areas remains constrained, contributing to a notable 8% drop in transaction volumes. This is exacerbated by strict financing conditions and the impact of increased interest rates on purchasing power.
Attraction of Foreign Buyers
Foreign investment persists robustly, particularly in coastal regions such as the Mediterranean and Balearic Islands. These areas remain attractive to international buyers in search of second residences, underlining their continued appeal.
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