Property
S pr pa o in in per ’s b En ty es gl ma t ish g
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SEPTEMBER MARCH 2025
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OVERHEATING, BUT ‘NO BUBBLE’ SPAIN’S housing market is showing no signs of cooling down, with analysts predicting prices will reach ‘levels never seen before’ by the end of this year. The prediction comes as official figures reveal prices soared by a record-breaking 12.7% in the second quarter of 2025. This is the highest annual increase since records began, according to Spain’s national statistics office (INE). And the rises are not set to ease up, -according
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to investment expert Montse Cespedosa. “In the last quarter of 2025, both sales volumes and prices will reach levels never seen before in Spain’s history,” said the financier, who boasts
over 27 years of banking experience. She added that anyone considering buying property here should brace for further price hikes. And despite the market already being at record levels, she warned there is no escape route from the chronic shortage of supply and excess demand plaguing the sector.
It comes as Spain’s mortgage market is also hitting record numbers in 2025, with 243,257 home loans signed in the first half of the year the highest figure since 2011. “There is a volume of mortgage operations that I haven’t seen for years,” she continued. She also ruled out any imminent housing bubble similar to the 2008 crash, when banks recklessly granted mortgages to people who couldn’t afford them. “There are still no signs of a bubble, but there is evidence of market overheating,” she concluded.