Spain’s property boom wrapped up 2025 with its strongest end-of-year figures in more than a decade.
Figures have just been released in the latest report from the Ministerio de Vivienda y Agenda Urbana.
New housing construction reached its highest fourth-quarter level since 2008. Developers started 34,200 new homes in the final months of the year, a rise of 14.5% compared to the same period in 2024.
Spain property boom: Strong activity
The wider property market also picked up pace.
During the third quarter of 2025, buyers completed more than 200,000 home purchases. That marks the highest quarterly figure since 2007. At the same time, mortgage lending increased by 8.7% year-on-year. Banks approved over 133,000 home loans, the strongest result in 15 years.
Mortgages made up 66.5% of all transactions in the fourth quarter. That is the highest share recorded for that period in 14 years.
Growth in renovation and investment
Renovation activity also gained momentum.
The sector grew by 11.7% over the year. Investment in refurbishment and extension works reached €677 million in the final quarter. This is the highest figure recorded since the data series began in 1991.
Employment continues to rise
Construction employment continued to climb.
By the end of 2025, nearly 1.7 million people worked in the sector. That represents a 5.1% increase compared to the previous year.
Overall, the figures point to a strong recovery in housing and construction. Activity has returned to levels not seen since before the financial crisis.
