The Spanish property market ended 2025 with an intensity that confirms a change in cycle. The combination of record prices, sustained demand and increasingly limited supply has put pressure on the general market, while the luxury segment has continued to advance steadily, driven by international buyers and growing investor interest. Against this backdrop, Spain has consolidated its position as one of the most attractive residential destinations in Europe.
The general market: record prices and skyrocketing rents
The year ended with a notable increase in housing prices in Spain. Although the exact figures vary depending on the source, they all agree on the same diagnosis: 2025 has been a year of historic highs.
In the rental market, the data is compelling. The average rental price rose by 8.5% year-on-year, standing at €14.7/m² at the end of December. Barcelona remains the most expensive capital city, at €23.8/m², followed by Madrid, which is close to €22.7/m². In addition, 25 Spanish capitals reached historic highs, reflecting a tense market throughout virtually the entire country.
The pressure on supply is evident: regions such as Castilla-La Mancha, La Rioja and Madrid recorded the highest increases in the country. The lack of available housing has become a structural problem that affects both sales and rentals.
The luxury segment: stability, investment and international demand
While the general market faces accessibility issues, the prime market has followed a different trajectory. International demand continues to grow, especially in Madrid, Barcelona, the Balearic Islands, the Costa del Sol and the Costa Brava, where European and Latin American buyers are looking for exclusive properties, legal certainty and quality of life.
The luxury segment remains remarkably resilient to interest rates and economic uncertainty. High-end buyers are less sensitive to credit and focus on assets with heritage value, strategic location and potential for appreciation. In addition, the rise of branded residences—luxury residences linked to international brands—is reinforcing Spain’s position as a premium destination, with more than a thousand units planned for the coming years.
Although there are no official figures for the entire prime market, industry reports agree that international demand has grown strongly and that the cumulative appreciation of the luxury segment far exceeds that of the general market.
Outlook for 2026: moderation in the general market, dynamism in the luxury market
Analysts predict that in 2026 the residential market will tend to moderate after an exceptionally intense year. Price rises could slow down, but the lack of supply will continue to be the main obstacle to normalisation.
In contrast, the luxury segment maintains a more expansive outlook. International demand continues to rise, supply is limited and prime assets continue to be perceived as a safe haven for value. Everything points to Spain continuing to consolidate its position as one of the most attractive luxury markets in Europe.
