The Spanish real estate market remains strong in the last quarter of 2025, standing out for its resilience in the face of international economic instability. According to recent data, the average home price in Spain has reached €1,806/m², with a projected increase of 6% by the end of the year.
Madrid and Barcelona: Leaders in Luxury Residential Demand
Major Spanish cities continue to be investment hubs. Madrid and Barcelona lead demand in the luxury residential segment, with prices exceeding €4,800/m² in the capital. Limited supply and constant buying pressure consolidate their position as preferred destinations for national and international investors.
Emerging areas: the Balearic Islands, the Costadel Sol, and the Valencian Community
Regions such as the Balearic Islands, the Costa del Sol, and the Valencian Community are experiencing significant growth. In the Balearic Islands, the average home price has surpassed €5,000/m², setting a record high. The Costa del Sol saw a 14.3% year-over-year price increase, standing out as one of the areas with the greatest appreciation in value. The Valencian Community, meanwhile, reached an average price of €2,514/m² in the city of Valencia, a 15% increase compared to the previous year.
Foreign Investment: A Key Market Driver
International investment in the Spanish real estate sector experienced a 39% growth in the first quarter of 2025, consolidating Spain as an attractive destination for foreign buyers. This increase is due to factors such as legal stability, quality of life, and market profitability.
Trends and Opportunities for Investors
The last quarter of 2025 presents itself as a strategic window for closing deals, with opportunities both in established assets in large capital cities and in projects in emerging regions with high appreciation potential. The combination of stability, international appeal, and growth opportunities positions Spain as a European benchmark for real estate investment.
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