The latest housing market figures published by the Spanish notaries for the first quarter of 2025 show a buoyant start to the year, with sales up across the board and well above the historical average. But beneath the national figures lies a clear split between fast-growing regions and those lagging behind.
Sales up 13% year-on-year and 36% above the long-term average
A total of 183,394 homes changed hands in Spain between January and March, an increase of 13% compared to the same period last year. More strikingly, this figure is 36% above the average for the last decade, which stood at just under 135,000 sales per quarter. It was the best first-quarter for sales since the end of the last boom in 2007.
These figures confirm a strong resurgence in activity in early 2025, supported by factors such as falling mortgage rates, improving consumer sentiment, and possibly a dash of buyer urgency amid ongoing political noise around property market restrictions.
Catalonia and Murcia lead regional growth
On a regional level, Catalonia recorded the strongest annual growth with 19% more sales than the same period in 2024, followed closely by Murcia, up 18%, and Andalusia, up 16%. These three regions have shown the most dynamic starts to the year and helped pull up the national average.
At the other end of the spectrum, the Canary Islands registered the weakest growth, with sales up just 3%, while the Valencian Community also underperformed slightly with a 5% increase. Even Madrid, typically one of the country’s most active markets, posted a modest 8% rise.
House prices up 8% nationwide, led by Madrid and Murcia
Average house prices in Spain stood at €1,852 per square metre at the end of Q1, up 8% year-on-year. That marks a 27% increase over five years and a 49% rise over the last decade, reflecting the strong long-term trend in Spanish residential property values.
Regionally, Madrid and Murcia both recorded the highest annual price increases at 15%, followed by the Canary Islands at 13%, and the Balearics at 10%. The Valencian Community also showed solid growth with a 9% rise, while Catalonia and Andalusia saw more moderate increases of 8% and 6%, respectively.
The most expensive regions remained the Balearic Islands (€3,891/sqm) and Madrid (€3,331/sqm), while Murcia was the most affordable of the main markets at €1,143/sqm despite its rapid price growth.
What it means for the rest of the year
While it’s too early to call 2025 a boom year, the Q1 data points to robust demand in much of the country, particularly in regions where lifestyle appeal and second-home demand are strong. However, with politics increasingly intruding into housing policy, and economic uncertainty still lingering in the background, the rest of the year remains anything but predictable.
SPI will continue to track the data and provide deeper insights as the year unfolds.
