House prices in Spain still rising fast - with one region up 37%

New data shows property prices in Spain continue to climb, especially in Murcia and the Basque Country

House prices across Spain are continuing their upward trend, with new figures showing an average year-on-year increase of 6.7% in May 2025. While the national rise has slowed slightly compared to previous months, eight autonomous communities have seen double-digit increases, led by Murcia where prices have surged a staggering 37%.

The average price per square metre across Spain now stands at €1,836, but this varies widely between regions. In the Balearic Islands and Madrid, for example, it’s closer to €3,500, while in the Basque Country prices are approaching €3,000. These areas remain among the most expensive places in the country to buy a home.

The latest data shows that the overall pace of price growth has remained stable since the start of the year. After an annual rise of 7.2% in January, prices peaked at 9.7% in February and dipped back to around 7% by May. This represents a stronger and more sustained trend than last year, when annual price growth was around 3.7% in May 2024.

Murcia has seen the sharpest rise in prices, while the Basque Country and Cantabria both recorded increases of around 14%. Other regions seeing double-digit annual growth include the Canary Islands, Aragon, Castilla-La Mancha, Galicia and Madrid. In contrast, prices actually fell in Navarre by nearly 16% compared to last year.

Despite slower price growth in Andalusia, La Rioja and the Balearic Islands, where increases were below 3%, these regions remain in demand, especially for overseas buyers. In fact, the Balearics and Madrid are still the most expensive areas overall, with average prices of €3,599 and €3,417 per square metre respectively. A 75-square metre flat in either region now costs over €250,000.

This continued increase follows predictions made late last year that house prices in Spain were set to rise significantly in 2025 due to limited supply and high demand, particularly in coastal and popular expat areas. These predictions appear to be holding true.

Apartments remain more expensive than houses, with an average price of €2,101 per square metre compared to €1,371 for single-family homes. The average flat purchased in Spain is 93 square metres, costing around €195,000, while houses average 169 square metres and cost approximately €231,700.

Rising property values are also pushing mortgage amounts higher. The average home loan in May reached €171,212, up 11% compared to the same month last year, and now covers around 73% of a property’s purchase price. Madrid and the Canary Islands saw the biggest increases in loan amounts, up 20.9% and 18.8% respectively.

Even though mortgages are up, actual sales have dipped slightly. A total of 62,587 homes were sold in May, 2% fewer than the same month in 2024, with notable drops in La Rioja (down 21.4%) and smaller declines in other regions. Only four communities saw an increase in sales volume: Galicia, Castilla-La Mancha, Castilla y León and Aragon.