Spanish Real Estate Market: Price Growth, Foreign Demand, and Mortgage Trends

In the Valencian Community, the second-highest percentage of real estate purchases by foreigners was recorded, at 29.6%, second only to the Balearic Islands (32.8%). Meanwhile, the national average in Spain stood at 14.5%, 0.37 percentage points lower than the previous quarter. Despite this slight decrease, the share of foreign buyers remains high, with British citizens leading the way.

Price Trends: New Records

The average real estate price in the fourth quarter of 2024 reached 2,164 euros per square meter, which is 2.4% more than in the previous quarter. According to data from the College of Registrars, this figure represents a new historical maximum. Compared to the pre-crisis year of 2007, prices have increased by 12.5%.

A breakdown by housing type shows that the cost of existing homes rose by 1.6%, while new-build properties increased by 3.7%. The resale property price index also showed growth of 1.7% for the quarter, extending its positive trend for the fifth consecutive quarter.

Regional Price Distribution

The most expensive regions were:

• Madrid — 3,780 euros/m²
• Balearic Islands — 3,771 euros/m²
• Basque Country — 3,157 euros/m²
• Catalonia — 2,615 euros/m²
• Canary Islands — 2,327 euros/m²

Among cities, the highest prices were recorded in:

• San Sebastián — 5,708 euros/m²
• Madrid — 4,517 euros/m²
• Barcelona — 4,483 euros/m²
• Palma — 3,631 euros/m²
• Bilbao — 3,068 euros/m²

9.2% Increase in Transactions over the Year

In the past 12 months, 636,909 real estate transactions were registered in Spain, 9.2% more than the previous year. Of these, 505,145 involved resale properties (+6.4%), and 131,764 involved new-build properties (+21.6%).

In the fourth quarter of 2024, the number of transactions grew by 33% compared to the same period in 2023 and by 3.6% compared to the previous quarter, reaching 172,551 transactions—the highest level since the third quarter of 2007.

During this period, new-build property sales increased by 61.2%, while existing home sales rose by 26.5%.

Foreign Buyers: The British Remain on Top

The share of foreigners among real estate buyers in Spain in the fourth quarter of 2024 was 14.5%, still a high figure despite a decrease of 0.37 percentage points.

The most active were:

• British — 8.57%
• Germans — 6.67%
• Dutch — 5.91%
• Moroccans — 5.3%
• French — 5.28%
• Romanians — 5.17%
• Italians — 4.76%

The highest share of foreign buyers was recorded in:

• Balearic Islands — 32.8%
• Valencian Community — 29.6%
• Canary Islands — 24.5%
• Murcia — 22.8%
• Catalonia — 16.5%
• Andalusia — 14%

13.4% Rise in Mortgages

Over the past year, 435,328 home mortgages were registered in Spain, 13.4% more than the previous year. This is the highest figure in the last six quarters.

In the fourth quarter of 2024, 123,897 mortgages were registered, a record since the first quarter of 2011, and 13.4% more than in the previous quarter.

The share of mortgage-financed transactions among all purchase and sale operations reached 71.8%, an increase of 6.2 percentage points for the quarter.

Conclusions

The Spanish real estate market continues to show steady growth despite economic uncertainties. Prices have reached historical highs, especially in major cities and popular tourist regions. The number of transactions is on the rise, with the largest increases seen in the new-build segment. The share of foreign buyers remains high, notably with British, German, and Dutch nationals in the lead. The rise in the number of mortgages reflects growing interest in financing real estate purchases, with a significant increase in the proportion of transactions involving borrowed funds.