Real Estate Market in Spain 2025: Record Prices, Rental Pressure, and a Surge in International Investment
The Spanish real estate market is experiencing an expansive cycle in 2025, characterized by soaring sales and rental prices, growing pressure on households, an unprecedented surge in foreign investment, and active public sector intervention, particularly in Catalonia.
Rentals at Historic Highs
The average rental price reached €14.37/m² in July 2025, representing a 14.1% year-on-year increase, despite showing a slight monthly decline (-0.1%). According to Fotocasa, a standard 80 m² apartment now costs €1,150 per month, which is €142 more than a year ago.
This surge affects all autonomous communities, with double-digit increases in Catalonia (21.2%), Castilla-La Mancha (13.3%), La Rioja (12.9%), the Valencian Community (11.8%), Andalusia (10.8%), and Aragon (10%). Madrid, meanwhile, recorded a 9.5% rise.
The most expensive regions for renting are Madrid (€21.55/m²), Catalonia (€20.41/m²), the Balearic Islands (€19.01/m²), the Basque Country (€16.99/m²), and the Canary Islands (€15.01/m²). At the provincial level, Barcelona (€21.83/m²) and Madrid (€21.55/m²) top the ranking.
The increase is also evident in capital cities: Barcelona (€23.42/m²) and Madrid (€22.35/m²) lead the list, followed by San Sebastián, Palma, and Bilbao. By contrast, cities such as Jaén, Cuenca, and Badajoz still offer rents below €8/m².
Room Rentals
Room rentals, which have become a forced alternative for thousands of people, now average €510 per month, up 55% since 2022. In cities like Barcelona and Madrid, most rooms already exceed €600.
| Price August 2025 (€) | |
| España | 510 |
| Cataluña | 618 |
| Madrid | 585 |
| País Vasco | 583 |
| Baleares | 558 |
| Navarra | 467 |
| Canarias | 432 |
| C. Valenciana | 430 |
| Andalucía | 384 |
| Cantabria | 366 |
| Aragón | 360 |
| La Rioja | 338 |
| Galicia | 335 |
| Asturias | 323 |
| Castilla y León | 318 |
| Murcia | 314 |
| Castilla-La Mancha | 289 |
| Extremadura | 251 |
Housing Market: Madrid and Barcelona Break Records
The home sales market shows a similarly upward trend. The average price of second-hand housing surged 17.7% year-on-year in August, reaching €2,738/m².
In Madrid, prices stand at €6,123/m², a 15.3% annual increase and 35% above the 2007 peak. This means an 80 m² apartment now costs €489,840. The price rise is widespread across all districts, with increases of over 20% in areas such as Villa de Vallecas, Carabanchel, and Retiro. The Barrio de Salamanca leads as the prime enclave at €10,487/m², a level never seen before in the capital.
In Barcelona, prices average €5,160/m², up 9% year-on-year, with historic highs expected this autumn. Notably, Sarrià-Sant Gervasi has jumped from €5,000 to €7,086/m² in just over a year. The Eixample (€6,673/m²) has also consolidated its position as a high-demand area, driven by urban projects and international interest.
Outlook
The Spanish real estate market faces the end of 2025 with a dual reality: on the one hand, housing is consolidating as a safe and profitable asset, reinforced by strong foreign demand and growing interest in room rentals; on the other, housing affordability continues to deteriorate, with both rental and purchase prices hitting historic highs, particularly in Madrid and Barcelona.
The lack of supply, demographic pressure, and regulatory intervention point toward a scenario of sustained tension in the coming months.
Stay tuned for more information on rental prices in Spain by visiting our blog and social media.
Want to learn more about the different rental contracts in Spain? Head over to our blog entry here.
Looking for updates and trends on the Spanish Rental Market? Search here.
