Spanish Property Market Hits New Peak

Buying a house in Spain is now more expensive than ever. The Spanish real estate market experienced a strong surge in late 2024 with a sharp increase in home sales, but also in prices, reaching a new all-time high, surpassing even the levels seen during the real estate boom of 2007 and the subsequent bubble burst in 2008 during the financial crisis.

Since then, the price of housing in Spain has risen by 12.5% to reach 2,164 euros per square meter. This is one of the main conclusions drawn from the Real Estate Registry Statistics published yesterday by the College of Registrars.

The analysis, based on official records collected by the National Institute of Statistics (INE), confirms that 2024 has been the most expensive year in history for the real estate market.

The highest prices were seen in newly built properties, with prices reaching another all-time high at an average of 2,265 euros per square meter, while the prices of used homes also increased by 3% in the last year, reaching 2,039 euros per square meter.

The situation has worsened almost nationwide, with regions such as the Community of Madrid, the Balearic Islands, and the Basque Country experiencing intensified price increases, surpassing the national average significantly with an average price per square meter nearing 4,000 euros. In fact, a more detailed analysis reveals even more alarming data.

In the city of San Sebastián, houses are offered at 5,708 euros per square meter, in the capital it costs 4,517 euros per square meter, in Barcelona 4,483 euros. In Palma, the price matches the rest of the autonomous region at 3,771 euros, and in Bilbao, also among the most expensive provincial capitals to buy a property, it stands at 3,068 euros per square meter.

Furthermore, the analysis reveals another important fact: 71.8% of transactions were financed with mortgages, while less than 30% were purchased without credit, indicating a shift in the market trend as the percentage of cash purchases has deflated. Until now, paying for a house in cash was a common sight in offices and real estate agencies.