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Spain’s Housing Crunch Intensifies as INE Confirms Decade-Long Surge and Prime Supply Tightens

Scarcity now reaches luxury homes, driving faster purchases with new price highs in the main markets as foreign buying remains significant.

Overview

  • Official INE data show the average mortgage rose from €104,318 in August 2015 to €169,650 in August 2025 (+63%), while average price per square meter climbed from about €1,524 to €2,679 (~+76%).
  • In August 2025, 33,271 home loans were signed (+7.5% year over year) and the average amount increased 15.5% to €169,650, indicating resilient activity despite higher ticket sizes.
  • Agents report acute shortages at the top end with faster deal timelines, citing €8,000–€10,000/m² in Barcelona’s Eixample and more than €11,000/m² in Madrid’s Salamanca district.
  • Notaries report 71,155 purchases by foreigners in the first half of 2025 (+2% year over year), representing 19.3% of sales, with non-residents paying €3,126/m² versus €1,809/m² for nationals.
  • Tight supply is pushing buyers to new hotspots beyond core areas—such as the Costa Brava, Cádiz and Menorca—while Madrid stands out for outsized increases (average mortgage up 95% to €276,158 and €4,384/m²).