The Spanish real estate market in 2025 has seen house prices on the rise once more.
According to estate agency donpiso, average home values are expected to climb by 7% this year. This means figures will reach over €1,900 per square metre. In big cities, the figure could more than double, hitting €3,900 per square metre.
But, what is driving this increase? It seems a mix of steady demand, relatively low interest rates, and a shortage of new homes coming onto the market are the cause.
Spanish real estate: More sales than in 2024
Sales are forecast to surge too. Donpiso predicts around 800,000 transactions in 2025, which is about 25% more than the 642,000 deals completed last year.
The busiest markets will be the Costa Blanca, Valencia, Madrid, Catalonia, and Andalusia, which together are expected to make up over half of all sales. Northern regions may also see a boost thanks to residential tourism, investor appetite, and Spanish buyers returning home.
What do the experts say?
Donpiso’s deputy general manager, Emiliano Bermúdez, says strong employment and better mortgage conditions will keep the market steady. “We don’t see a bubble, but a year of stable growth, especially in well-connected cities,” he confirmed.
He adds that rising city-centre prices are pushing buyers towards smaller cities and commuter towns in the first and second rings around major urban hubs.
The main trend of buyers is still families and young buyers looking to upgrade their main home, helped by mortgages that are becoming easier to access. At the same time, more people are starting to see property as a safe investment against inflation.
Costa Blanca real estate
The Costa Blanca province has become the epicentre of international property demand, according to figures from property site Idealista. In the second quarter of 2025, a full 33.2% of all foreign searches for homes in Spain were centred on Alicante. That puts it ahead of the Balearic Islands (31.5%) and Malaga (27.1%), two of its fiercest rivals.
