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Spain’s Home Prices Overtake 2008 Peak as Sales Boom Persists

New‑build demand now drives growth in a market constrained by scarce supply.

Overview

  • The Housing Ministry reports an average price of 2,153 euros per square meter, surpassing the 2008 nominal peak, up 12.1% year over year and 2.9% quarter over quarter after four straight quarters of double‑digit gains.
  • Madrid reaches 3,732.5 euros per square meter, a nominal high since the pre‑crisis bubble, though prices remain well below that era in real terms according to the ministry.
  • INE data show 176,221 home sales in the third quarter, the strongest since 2007, pushing year‑to‑date transactions 14.4% above 2024, with September up 3.8% to 63,794 for the best September since 2010.
  • New‑build homes now account for over 20% of deals, with sales rising about 24% this year versus 12% for second‑hand, reflected locally in Málaga where used sales grew 1.5% and new‑build jumped 23.7% to 32.9% of activity.
  • Growth is concentrated in lower‑priced regions such as Castilla‑La Mancha (+19%), Navarra (+12.4%) and Andalucía (above 10%), while sales fell in Baleares (‑9.6%) and edged down in Madrid in September as the Banco de España considers mortgage‑lending limits.