Spain's property market remains stable, with home prices rising by an average of 9% this year. Coastal and urban areas attract foreign buyers, impacting local access. Newly built homes now average €3,300 per square meter, reaching record highs. While cautious lending is evident, the major concern is the disparity between prices and earnings. Homes now cost nearly 9 to 11 years of full salary, but wages have only increased by 2%. This creates an affordability crisis for aspiring homeowners and renters in Spain.
In early 2025, the average price of a newly built home reached €3,300 per square meter, and for a typical hundred-meter flat, that's around €329,000, a record high.
Most cities have experienced home price increases of 9% or more this year, with Madrid and Costa del Sol seeing over a 12% rise in prices.
Spanish workers are finding the market increasingly inaccessible, as homes now cost nearly 9 to 11 years of full salary, while average wages rose only 2%.
The current housing situation is supported by real demand and cautious lending practices, with the mortgage-to-GDP ratio remaining well below 2007 levels.
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