Soaring housing prices surge by 10.4% in the second quarter, hitting a peak not seen since the year 2008 amidst the real estate market bubble
In the real estate market of Spain, a noteworthy trend is emerging. Madrid currently holds the title for the most expensive square meter of housing, with an average price of 3,630.9 euros per square meter. This figure surpasses the historical maximum of 2,100 euros per square meter, a milestone reached during the housing boom in the first quarter of 2008.
Interestingly, housing over five years old has experienced a 2.9% quarterly increase, while housing under five years old has seen a more substantial 3.5% quarterly growth. The price per square meter for new free housing now stands at 2,440.2 euros.
The region of Catalonia, specifically Barcelona, boasts an average price of 2,920.9 euros per square meter, with the Balearic Islands following closely behind at 3,518.2 euros per square meter, making it the second most expensive region in Spain.
Several regions, including Cantabria, the Valencian Community, Madrid, the Balearic Islands, Asturias, Galicia, Aragon, and the Canary Islands, have witnessed an over 10% increase in housing prices. The Basque Country, with an average of 2,792.5 euros, is not far behind, with the Guipúzcoa province surpassing 3,000 euros per square meter.
Protected housing, a category that includes historical buildings and other significant properties, has seen a 1.6% quarterly increase, currently priced at 1,188 euros per square meter. The cost of free housing, on the other hand, has risen by 10.4% year-on-year during the second quarter of 2025, with the price per square meter of free housing over five years old standing at 2,083.1 euros.
The series for all housing in Spain began in 1995, while the series for protected housing started in 2005. It's worth noting that housing prices have increased almost 44% compared to the 2014 lows, and the current price per square meter is only 0.3% below the historical maximum since 1995.
Intriguingly, the region with the most valuable living space in the second quarter of 2025 was not in Spain. The island of Sylt, located in Germany, held this title, with an average price per square meter of about 14,597 euros, making it the most expensive area in Germany at that time.
Despite the significant increase in housing prices, the number of housing valuations conducted in the second quarter decreased by 3.4% compared to the same period the previous year, with a total of 185,620 valuations carried out.
This brief overview provides a snapshot of the current state of the Spanish housing market. As prices continue to rise, it will be interesting to see how this trend unfolds in the coming quarters.
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