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Spain’s Home Prices Surge 13% Year Over Year, Fastest Since 2006

Cheaper mortgages met scarce new supply, pushing prices to fresh highs in job and tourism hubs.

Overview

  • Tinsa reports a 13.1% annual rise at Q4 2025, roughly 10% in real terms, with the national average reaching €2,091 per square meter.
  • Capital cities led the acceleration: Madrid rose 20.9%, València 17.5% and Palma de Mallorca 15.3%, while regional gains were also steep in Madrid, Comunidad Valenciana and Cantabria.
  • Home sales stayed robust through 2025, with notaries estimating about 550,000 transactions despite the price surge.
  • Supply constraints deepened: Galicia’s certified completions fell 60% from January to October, and the Banco de España pegs the national shortfall at about 700,000 homes.
  • Social strain is acute in hotspots such as Mallorca, with local reports of encampments and overloaded services, while economist Gonzalo Bernardos warns the rental market is severely constrained.