Spanish Housing Prices Continue Strong Growth in July 2025

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The Spanish housing market shows no signs of slowing down, with property prices continuing their upward trajectory throughout the summer months. New data reveals that housing values are accelerating across all regions, with urban centers leading the charge.

Key Market Highlights

The average value of new and used housing in Spain increased by 1.5% between June and July, bringing the annual growth rate to an impressive 11.5%. This sustained growth demonstrates the robust demand continuing to drive the Spanish property market.

Capitals and major cities experienced the most significant monthly increase, with prices rising 2% compared to the previous month. This surge in urban areas reflects the ongoing concentration of demand in Spain's key metropolitan regions.

Regional Performance Leaders

When examining annual growth rates, three regions stand out as the top performers:

  • Islands (+15.7%) - Leading the market with exceptional growth
  • Capitals and major cities (+12.5%) - Maintaining strong momentum
  • Mediterranean Coast (+10.6%) - Benefiting from continued coastal demand

All three regions have achieved growth rates exceeding 10% annually, significantly outpacing the national average.

Real Growth After Inflation

Even after accounting for inflation effects, the data reveals interesting regional trends. Capitals and major cities show continued acceleration in real terms, while the Islands and inland municipalities are experiencing slight moderation - though still maintaining robust growth rates.

Historical Context

Despite this strong performance, Spanish property values remain 7.3% below the peak levels reached in 2007, indicating there may still be room for further growth before reaching previous market highs.

Expert Analysis

Cristina Arias, Director of Research at Tinsa by Accumin, explains the driving forces behind this growth: "In July, residential prices continued to grow above inflation in all areas, with particular intensity in capitals and major cities, where population concentration combined with housing supply shortages generates the greatest price pressures."

Looking Ahead

The July data from the IMIE General and Major Markets Index confirms that Spain's housing market remains in a strong growth phase, with urban areas experiencing the most significant price increases. The combination of population concentration and limited housing supply continues to drive price growth, particularly in Spain's major cities.

For property investors and homebuyers, these trends suggest the importance of acting decisively in Spain's competitive housing market, especially in high-demand urban and coastal areas.

Data source: IMIE General and Major Markets Index, Tinsa by Accumin

Location: Altea, Alicante, Spain

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