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Madrid Leads Spain’s 2025 Housing Price Surge as New Data Confirm Sharp Gains

Analysts trace the acceleration to strong demand, scarce supply, supportive financing.

Overview

  • Tinsa’s fourth‑quarter report shows Madrid city home values up 20.9% year over year to €4,883 per square meter, with the Comunidad de Madrid also leading regional growth at 19.6%.
  • Sociedad de Tasación reports new‑build prices rose 8.9% nationally in 2025, with Madrid posting a 10.7% increase and requiring an estimated 10.2 years of full salary to purchase a home.
  • Gesvalt finds the sharpest increases in Barcelona occurring in traditionally cheaper districts such as Sants (+13.1%) and Nou Barris (+12.3%), while the city records Spain’s highest average rent at €29.34 per square meter.
  • A study by Catalan notaries highlights sale prices up to roughly 50% lower in towns around 30 km from Barcelona, though viability hinges on commutes under 45 minutes and weak transport links are worsening access.
  • Local reporting in the Balearic Islands cites thousands of vacant dwellings kept off the market over fears of occupation and arrears, and the APEI association urges legal guarantees to mobilize that stock.