Property Prices Shatter Records Across Spain and Canaries
House prices in Spain rose by 7.5% in 2025, with the Canary Islands seeing a dramatic 12% surge, breaking the previous records set in 2007 at the height of the property bubble. According to data from the General Council of Notaries, while national property sales grew by 4.4%, they fell by 4.7% in the Canary Islands. The year also saw a 13.7% increase in new mortgage lending for home purchases, a trend set against a backdrop of a severe housing shortage across Spain. This deficit is driving up prices and worsening access to housing, particularly for young people and the most vulnerable.
Sustained Price Growth With No Signs of Slowing
In 2025, the average price per square metre in Spain reached €1,902, 7.5% higher than in 2024 and exceeding the historic peak of 2007 (€1,832/m²). The notaries report that this upward trend shows no signs of slowing down. Prices showed sustained growth throughout every quarter of the year, with annual rates fluctuating between 6% and 9%. Flats saw the highest increase, rising 10.1% to €2,186/m², also surpassing 2007 highs. Meanwhile, the price of detached houses reached €1,424/m², a 3.8% increase, bringing them to levels similar to those during the bubble.
Regional Highlights: Canaries Among Top Performers
Last year, all autonomous communities registered price increases. Double-digit growth was recorded in Murcia (14.4%); Cantabria (14.4%); the Community of Madrid (13.3%) and the Canary Islands (12%). Significant increases were also seen in Castilla-La Mancha (9.6%); the Valencian Community (9.4%); Extremadura (9.2%); Catalonia (9.1%) and the Balearic Islands (8.9%). The highest prices were found in the Balearic Islands (€4,061/m²); Madrid (€3,463); the Basque Country (€2,995); Catalonia (€2,323) and the Canary Islands (€2,177).
Sales Activity: A Year of Two Halves
The number of property sales in Spain increased by 4.4% annually in 2025 to 752,661 transactions, the second-highest figure in the historical series, after the 853,568 recorded in 2007. However, notaries highlight that in recent months sales have shown signs of stagnation with a slight downward trend. The year was uneven: while the first quarter was particularly strong for sales, the next two saw a notable slowdown, ending the year with negative rates in the final three months. Flat sales increased by 2.3% to 567,564 units (below 2007 figures), while detached house sales saw a greater rise (11.5%) to 185,097 units, exceeding the historic high of eighteen years ago.
Transactions rose in all regions except Madrid (-4.7%), the Canary Islands (-4.7%) and the Balearic Islands (-0.4%). The largest increases were in Castilla y León (13.6%) and the Basque Country (12%), Extremadura (9.9%) and Aragón (9.1%). The average size of a home in Spain increased by 0.5% in 2025 to 112.7 m².
Mortgage Lending Sees Significant Uptick
New mortgage loans for home acquisition increased by 13.7% in 2025 to 389,090, while the average loan amount rose by 11.8% to €173,989. Mortgages for house purchases grew in all communities. The most significant increases were in Extremadura (21.2%); Asturias (18.7%); Castilla-La Mancha (18.7%); Aragón (18.7%); Catalonia (18.5%); Galicia (17.6%); Castilla y León (17.2%), Murcia (15.9%) and La Rioja (15.6%).
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