marbella rea estate market update
September 30, 2025

Spain Real Estate: A Two-speed Dynamic

By Alfredo Bloy-Dawson

Year-to-date data show the Spanish real estate market remains resilient. Steady price growth has offset small drops in transactions. In July 2025, 71,550 homes changed hands across Spain. New figures from Spain’s Notaries reveal that this marks a small 1% decline compared with July 2024.

The islands show divergent patterns. The Balearics maintain stable activity but subdued prices. The Canaries face sharper sales declines despite rising values.

Sales patterns varied by property type. Apartment sales fell 3.2% year-on-year to 53,752 units. Single-family homes performed better, rising 6.2% to 17,797 units.

Prices rose despite lower volumes. The national average reached €1,910 per square meter, up 4.9% year-on-year.

Regional overview

Andalucia

Sales in Andalucía fell 1.0% year-on-year in July. Price growth was modest at 3.2%, below the national average. Mortgage lending rose 3.2% compared with July 2024, also slower than the national pace.

Valencia Region

Sales declined 1.5% year-on-year. Prices, however, rose strongly. They gained 7.7%, well above the national average. Mortgage activity increased 6.4%, roughly matching national growth.

Murcia Region

Murcia bucked the trend with positive sales momentum. Transactions rose 2.5% year-on-year. Prices surged 8.6%, one of the strongest increases in Spain. Mortgage lending also grew robustly, up 6.3%.

Canary Islands

The Canary Islands saw one of the steepest sales declines. Transactions fell 11.7% compared with July 2024. Prices still rose 5.3%. Mortgage lending dropped 3.2%, making the region one of few to record declining financing.

Balearic Islands

The Balearic Islands recorded modest sales growth of 3.1% year-on-year. Price growth was subdued at just 1.3%, the weakest among the five regions. Mortgage lending rose 3.0%, below the national figure.

Mortgages

Nationally, mortgage lending for home purchases rose 6% year-on-year in July 2025. Just over half of all purchases (53.3%) were financed with a mortgage. Mortgages covered an average of 72.5% of the property price.

Regional patterns varied. Murcia and Comunidad Valenciana posted above-average lending growth. Andalucía and the Balearics saw smaller increases. The Canary Islands were one of only four regions where mortgage volumes contracted.

Looking ahead, several factors will shape regional trends. These include affordability pressures, financing costs and international demand. These factors matter most in coastal and island markets that attract overseas buyers.

RegionSalesYear-on-year changeAverage Price m² (€)Year-on-year change
Andalucia13,636-1.0%1,670+3.2%
Valencia Region11,577-1.5%1,589+7.7%
 Murcia Region2,833+2.5%1,202+8.6%
Balearic Islands1,458+3.1%4,100+1.3%
Canary Islands2,248-11.7%2,037+5.3%
Spain totals71,550-1.0%1,910+4,9%

Fuente: Centro de Información Estadística del Notariado (CIEN). Datos de julio de 2025 vs. julio de 2024.