Growth Slows in Q2

In the second quarter of 2025, Spain’s housing market showed slower price growth according to Spain’s land registry.  International demand remains strong, especially in coastal regions. National price growth has slowed compared to previous periods. The market shows continued activity despite the quarterly drop in transactions.

Transaction Activity Home sales dropped 5.8% compared to the first quarter. Spain recorded 171,078 property transactions. However, sales were still 17% higher than the same period last year. New construction sales showed particularly strong annual growth.

Price Changes Average home prices reached €2,251 per square meter. This was a new record high. Prices rose 1.1% from the previous quarter. The annual price increase was 3.6% using the repeated-sales index.

Foreign Buyers International buyers made up 14.1% of all purchases. British, German, and Dutch buyers were the most active foreign nationalities. European buyers dominated the foreign market.

Regional Patterns Foreign buyers were most active in coastal and island areas. The Canary Islands had the highest foreign buyer share at 30%. The Balearic Islands followed at 28.4%. The Valencian Community reached 28.1%. Murcia had 22.7% foreign purchases. Andalucia accounted for 13.7% of foreign transactions.