Spain’s Property Market Tops 700,000 Home Sales in 2025

Spanish Housing Market Hits Highest Level in 18 Years

Spain’s residential real estate market reached a historic milestone in 2025, with more than 700,000 homes sold across the country — the strongest annual performance since 2007. According to data released by the National Statistics Institute (INE), a total of 714,237 property transactions were recorded in 2025, representing an 11.5 % increase compared with the previous year and marking the highest volume of sales in almost two decades.

Demand Drivers Behind the Record Sales

The surge in housing transactions reflects a combination of robust domestic demand and favourable financing conditions. Despite broader economic headwinds, the relatively low jobless rate and continued access to mortgage credit have supported buyers’ ability to enter the market. Limited supply has also played a pivotal role, with strong competition for available properties sustaining high activity levels throughout the year.

Most of the activity occurred in the resale segment, which accounted for more than 78 % of all transactions in 2025. However, sales of newly built homes also rose sharply, increasing by 16.1 % compared with 2024 — a sign of growing interest in fresh construction despite constrained inventory.

Regional Trends and Market Dynamics

Sales were concentrated in Spain’s key property markets, with Andalusia, Catalonia, the Valencian Community and Madrid leading in absolute transaction numbers. These areas continue to attract strong buyer interest due to their economic dynamism and diverse housing options.

At the same time, other regions such as Castile and León, Castile-La Mancha and La Rioja recorded particularly high year-on-year growth in home sales, pointing to expanding demand in less saturated markets and rising activity beyond the traditional hubs.

Outlook for Spain’s Housing Market

Although the record sales figures signal a vigorous market, analysts emphasise that continued price growth and limited supply may test affordability for some buyers. Unlike previous market surges, stricter mortgage standards and a more stable buyer profile may help cushion potential imbalances. Nevertheless, challenges related to supply constraints and first-time buyer access remain central themes for 2026 and beyond.

As experts at International Investment note, Spain’s real estate market concluded 2025 with unprecedented activity in home sales, but maintaining that momentum will require balancing demand with increased housing supply and competitive financing conditions.