Housing prices in Spain set a record: where the growth is highest and where it is still affordable.

In July 2025, Spain showed the highest growth in housing prices in the European Union. The average cost of a square meter of housing on the secondary market is 2,471 euros, which is the highest figure in the country's history.

According to the analytical portal Idealista, this growth is no longer surprising for the market. Over the past year, prices have risen by 14.7%, in three months by 5.1%, and in June by 1.4%.

'The indicator demonstrates not a temporary wave but a systemic increase in demand for real estate,' experts from Idealista emphasize.

The price increase has affected all regions of the country. The highest price growth was recorded in Madrid (+24.4%), Murcia (+19.3%), Valencia (+18%), the Canary Islands (+17.2%), and Cantabria (+17%). Meanwhile, the absolute record holder is the Balearic Islands with a price of 5,025 euros per square meter.

Affordable housing in Spain

Despite the overall price increase, there are regions in Spain with affordable housing. The cheapest housing is offered in Extremadura (979 euros) and Castilla-La Mancha (982 euros). The most expensive city remains San Sebastián, where a square meter costs 6,230 euros.

Updates on the short-term rental market

The Spanish government has begun to restrict short-term rentals. From July 1, 2025, new rules apply to listings on platforms such as Airbnb, Booking, and others. The absence of an official registration number may lead to the removal of the listing and fines for owners up to 90,000 euros.

Spain is experiencing a record increase in housing prices that affects all regions of the country. Despite this, there are regions with affordable housing, but the government has already started to restrict short-term rentals to regulate the market.