Spain’s housing market is losing steam – but the full picture depends on where you’re looking. Spain’s housing market momentum has begun to wane, with provisional data from the Land Registry revealing more than 53,600 home sales in April 2025—a modest 0.4% increase from the previous year. This marginal growth represents the smallest year-over-year gain since June 2024, signalling a marked deceleration from the robust increases observed in recent months.
The slowdown appears to be broad-based, though regional variations remain significant across the country’s diverse property markets.
Core regions in April 2024
- Andalucia 11,103 homes sold, +4.8% year-on-year
- Valencia Region 8,117 sales, -2.2% year-on-year
- Murcia Region 2041 sales +23.0% year-on-year
- Canary Islands 1938 sales, -24.9% year-on-year
- Balearics 1,067 sales, -13% year-on-year
Meanwhile, mortgages maintained a solid growth rate, with just over 39,000 residential mortgages registered in April, representing a 13.3% increase.
Key Growth Drivers
- Reduced interest rates, boosting mortgage demand
Tight housing supply, as building—and especially affordable/urban housing—lags far behind household formation
Foreign and tourist demand, particularly impacting urban centres and coastal areas
Property Prices – Outlook
For once, it seems forecasts agree and point to a 5% rise in residential property prices in Spain in 2025 overall.
- CBRE +5.3%
- CaixaBank Research +4.5-6%
- BBVA Research +5%
- Alfredo Bloy-Dawson +5%
| Factor | Impact |
|---|---|
| Price Growth | Strong: likely +4–6% nationally |
| Sales Volume | Stable to slightly down: ~530k–680k |
| Affordability | Remains pressured—especially in cities |
| Policy Response | Enforcement on tourist rentals; ↑public housing |
| Region Divergence | Coastal/urban > inland in price growth |
*”Completions” is a more relevant term than “sales” because new development sales are normally counted by the market upon reservation but not recorded in the land registry until delivery/completion, so these tend to be 12-18 months out
