Quarterly housing price trends in Spain Q1 2025

• The average home price in Spain increased 7.5% year-on-year in the first quarter of 2025 (+4.7% after adjusting for inflation). The price increase in the city of Madrid is notable, with a +15.1% increase compared to the same period last year.
• Twenty-eight of 53 capital cities recorded year-on-year increases of more than 5.0%, compared to 22 in the previous quarter. The sharpest increases, above 13%, were found in Madrid, Valencia, Vigo, Palma de Mallorca, and Soria.
• The theoretical purchasing effort at the national level falls slightly to 34.9%, although it exceeds 50% of the average household's disposable income in the secondary municipalities of Marbella (Málaga), Torrevieja (Alicante), Benidorm (Alicante), Vélez (Málaga), San Lúcar de Barrameda (Cádiz) and Chiclana de la Frontera (Cádiz), as well as in the capitals of Cádiz, San Sebastián, Madrid, Málaga and Barcelona.

Price Evolution

In the first quarter of 2025, the average home price in Spain increased by 2.9% quarter-on-quarter and 7.5% year-on-year, according to the IMIE Local Markets statistics based on appraisals conducted by Tinsa España by Accumin. The largest price increases are concentrated in tourist areas, employment hubs, and nearby secondary municipalities. The intensity of price evolution is notable in the Community of Madrid, especially in its capital (+15.1% year-on-year).

Residential Demand

The initial data for 2025 continue to reflect resilient employment and a recovery in the purchasing power of average wages, both factors that sustain household solvency. In this context, residential demand has remained at robust and solvent levels, as measured by the volume of sales and mortgages, which continued to show year-on-year growth in both variables in January.

New Construction Offer

Construction management permits in January remained at the same level as the previous year (-0.4%, according to MIVAU data), reflecting the offering constraints facing the expansion of the residential stock in areas with concentrated demand, mainly associated with the shortage of available land.

Theoretical Purchase Effort

The national purchase effort rate has moderated slightly, from 35.5% to 34.9%, thanks to the gradual restoration of household purchasing power and, to a lesser extent, the moderation in mortgage costs. However, several provinces continue to experience critical housing pressures above 45% of the average household's disposable income, making it difficult for them to access housing.