The main reason that explains this increase? Supply of houses It is unable to keep up with demand, making access to home one of the country’s major social problems.
In these ten years, the average property value in Spain has increased 80.9% according to data from the National Institute of Statistics. Which compares the development of the price index from the third quarter of 2015 to the same period in 2025.
The rise was not uniform. Madrid It is a community where housing has become more expensive in the past decade, an increase of 100.68%, before Balearic Islands (94.39%) and Catalonia (87.48%).
The rest of the autonomous regions are recording increases below the national average.
In the last ten years, real estate prices have increased by 79.26%. Andalusia; 76.11% Aragon and 75.74% Canary Islands.
Price increases in the Valencian Community (69.60%), the Basque Country (68.24%), La Rioja (67.87%), Navarra (66.37%), Murcia (65.95%), Galicia (61.90%), Castilla y León (61.67%), and Asturias (58.77%) also exceeded 50%.
At the bottom of the ranking there Castile la Mancha (44.79%) And Extremadura (42.68%).
They deserve a separate mention Autonomous cities. Ceuta (100.98%) and Melilla (96.57%) outperform the majority of communities.
Since Covid-19
If the fourth quarter of 2019 is taken as a reference, only Before the Covid outbreakthe market saw a new stretch of strong increases.
In Spain as a whole, housing prices increased by 46.34% since then.
The escalation was particularly severe in Melilla (58.50%), Ceuta (55.17%), Andalusia (53.83%) and Cantabria (53.24%). The population of the Balearic Islands and the Canary Islands is close to 50%, as are Aragon and Murcia, while the Valencian Community (47.93%) is slightly above the national average.
The smallest increases again occur in Extremadura (35.08%) and Castilla-La Mancha (34.02%), although even in these two regions Housing prices have risen more than 30% since the beginning of the pandemic.
2025: Record increases
The latest data confirms this The escalation did not stop. The National Institute of Statistics has just published its housing price index, which shows… An increase of 12.8% In the third quarter of this year. It’s the largest increase since the series began in 2007.
It is Forty-sixth consecutive quarter of increases. Between July and September, used homes became 13.4% more expensive on an annual basis – the historical maximum – while new home prices rose by 9.7%.
According to TINSA calculations, the average housing value in Spain This is only 3.3% lower than its peak in 2007 In nominal terms, although it is still lower if inflation is discounted.
The island market is 24% above nominal caps – again without discounting inflation – before the bubble. Large cities are 2.3% higher.
Strong demand, short supply
Experts agree on the diagnosis: demand continues to grow and The offer arrives late and in insufficient quantities.
Maria Matos, Director of Studies at Fotocasa, sums up the current moment: “The strong rate of house price appreciation responds to a combination of strong demand that continues to grow, Mortgage terms are more favorable “The supply is very limited.”
Price reductions implemented before European Central Bank (ECB) – From 4% to 2% over twelve months – They brought one in five buyers back into the market who had stopped looking.
The shift in monetary policy is not the only element explaining this shift Increase buyer appetite. Other factors do this as well, such as the desire for improved housing after the pandemic or increased migration flows.
Added to this is the emergence of single-person households and the role of housing as a refuge value in the context of geopolitical uncertainty.
At the same time, renting is becoming an increasingly expensive and rare alternative, pushing many families towards buying. According to Fotocasa studies, 18% of the population is looking for their own homeCompared to 12% in 2019.
Extreme stress
Despite the similarity with the years prior to 2007 in terms of price increases, Analysts rule out talk of a classic bubble. Banks are applying stricter solvency standards, and household debt is less than it was in the previous crisis.
Both experts from Fotocasa and Pilos.com confirm that there is no speculative boom financed by easy credit, but rather a persistent imbalance between supply and demand.
“There is a very active demand,” highlights Ferran Font, Director of Estudios de piso.com. Supported by expectations of rising prices And the state of interest rates, housing is being purchased at prices not seen since the real estate bubble.
At the same time, “supply shortages” are driving up housing prices.
Housing deficit
The root of the problem is the lack of new homes. Various tuition services accounts agree to this Spain builds more than 200 thousand homes annually While you just finish About 100,000 new homes.
Fotokasa speaks of a “major imbalance between supply and demand,” with 81% of market participants interested in buying, while only 12% want to sell.
Tensa points out that since 2015, new building construction has remained at low levels despite the recovery, and that Stocks Available has declined after several years of strong buying and selling.
BBVA Research has put the numbers in the hole. According to their estimates, the deficit has accumulated in recent years by more than 600,000 homes, and it may reach about 700,000 units in 2030 if it does not accelerate strongly. Investment in residential construction.
The bank’s research service asserts that in order to begin to significantly reduce this imbalance, Spain must come closer 250,000 homes are constructed and completed annuallypractically double the current rate.
Today, new construction visas exist in It ranges from 120,000 to 130,000 homes per year. BBVA Research predicts it could increase to between 140,000 and 155,000 units in 2025 and 2026.
The entity’s simulations indicate that to cut the deficit in half between now and 2030, investment in housing must grow by about 15% annually between 2027 and 2030. Until it reaches 10% of GDP.
This level would be close to the maximum of 11.7% recorded in 2007, although in a completely different financial and regulatory context.