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Spain’s housing market has taken another sharp upward turn, with prices rising by 12.9% in 2025, making it the fourth largest increase in the European Union and more than double the EU average.

 

According to the latest Eurostat data, only Hungary, Portugal and Croatia recorded higher increases last year. Across the EU as a whole, house prices rose by 5.5%, while the eurozone average was slightly lower at 5.1%.

 

The figures underline how quickly the Spanish market has accelerated in recent years. House prices have been climbing steadily for over a decade, but the pace has intensified significantly since the pandemic and energy crisis, with demand consistently outstripping supply.

 

By the end of 2025, property values in Spain had reached levels of annual growth not seen since the peak of the housing bubble, with the last comparable surge dating back to early 2007. Since the end of 2022 alone, prices have risen by 31%.

 

What is striking is how consistent the increases have been. Throughout 2025, year-on-year growth hovered around the 12.8% mark, before edging slightly higher by the final quarter. This follows an already strong 11.4% rise at the end of 2024, meaning Spain has now entered a prolonged period of double-digit growth.

 

This sustained rise has already been felt in key areas such as the Costa Blanca, where prices have surged and affordability has been pushed “to the limit” in hotspots like Benidorm and Torrevieja.

 

In parts of Murcia, the trend has been just as clear. In Cartagena, for example, property values have repeatedly hit new records, with delays in buying often resulting in higher costs for purchasers.

 

 

Across Europe, the picture is mixed. While Spain sits near the top of the table, several major economies have seen far more modest increases. Prices rose by just 4.1% in Italy, 3% in Germany and 1% in France. Finland was the only country to record a fall, with prices dropping by 3.1%.

 

In contrast, strong growth has been concentrated in parts of Central and Eastern Europe, as well as the Iberian Peninsula. Tourism is widely seen as a key factor in some of these markets. Spain, Portugal and Croatia all share a high level of demand linked to holiday rentals and foreign buyers.

 

As one analyst noted, “the importance of tourism and its impact on the real estate market” continues to shape price trends in these countries.

 

Earlier reports also highlighted that rising demand, combined with limited supply, has been a driving force behind continued price increases across Spain.

 

For buyers, the message is becoming increasingly familiar. Prices are still rising, and quickly. While growth may have stabilised slightly, the overall direction remains firmly upwards, adding further pressure for those hoping to get onto the property ladder.

 

 

Image: Jakub Zerdzicki/Pexels