Housing prices in Q2 2025: An in-depth look at the real estate market

In Q2 2025, the average value of completed properties (new and resale) rose by 9.8% year-on-year and by 2.6% quarter-on-quarter. Excluding inflation, these figures show real annual growth of 7.7%, implying yet another acceleration in residential prices compared to the previous quarter, according to data from the IMIE report by TINSA Spain by Accumin and Accumin Intelligence.

Key insights:

• Rates of affordability in Spain remained at 34%, a level considered reasonable, due mainly to the gradual recovery of household purchasing power and, to a lesser extent, more moderate mortgage costs.
• In Q2 2025, four regions experienced price upticks of over 10%, namely Madrid, the Balearic Islands, Cantabria and Asturias, and four others saw between 9 and 10% rises (Comunidad Valenciana, the Canary Islands, Andalucía and Catalonia).
• A Spanish family would have to spend an average of 34.1% (compared to 34.9% in the previous quarter) of their available income on the first payment of their mortgage with the above characteristics (80% LTV). In Q2 2025, 7 provinces continued to have a higher than reasonable rate of affordability (over 35%). They were Malaga, the Balearic Islands, Madrid, Cadiz, Alicante, Seville and Barcelona.