Data from the Spanish College of Registrars confirm ongoing trends and a steady sense of market momentum. In the first quarter of the year, house sales showed a modest 2% down from the prior quarter as prices were trimmed by about 1.5%. The market adjusted for the second consecutive quarter amidst higher interest rates and rising mortgage costs, a combination aimed at cooling inflation. Despite a year-on-year price rise of 4.9%, real estate players report tighter operating conditions, suggesting that selling prices may soften in the months ahead.
The twelve-month totals reveal 642,966 home transactions, the second strongest figure since mid-2008 and well above the pre-pandemic volume of a little over 520,000. Analysts predict a more gradual year with softer trading activity and continued price pressure. According to these registrars, the average price in the first quarter stood at 1,921 euros per square meter. While benchmarking data remains limited, it is clear that risk trends favor a cautious view. In the used housing segment, prices averaged 1,873 euros per square meter, up 5.4% from 2022, while new housing averaged 2,124 euros per square meter, up 3.8%. Registrars emphasize that new housing represents only about two out of ten transactions and sometimes reflects deals arranged roughly two years in advance, so movements in used housing prices are typically more representative of the market as a whole.
Prices by autonomous communities show Madrid leading with an average of 3,221 euros per square meter, followed by the Balearic Islands at 3,027 euros and the Basque Country at 2,990 euros. Catalonia registered 2,375 euros per square meter, and the Canary Islands 2,168 euros. At the provincial level, Guipúzcoa averaged 3,366 euros per square meter, Madrid 3,221 euros, Balearic Islands 3,027 euros, Vizcaya 2,862 euros, and Barcelona 2,704 euros. Among provincial capitals, San Sebastián reached 5,128 euros per square meter, Barcelona 4,355 euros, Madrid 3,960 euros, Palma 3,216 euros, and Bilbao 2,887 euros.
Foreign demand remains a notable factor in the Spanish real estate landscape, accounting for 14.52% of total purchases. This influence is especially pronounced in the Balearic Islands where foreigners represented nearly a third of transactions (around 29.2%), the Valencia Community (28.3%), the Canary Islands (28.3%), the Region of Murcia (21.4%), Catalonia (15%), and Andalusia (14.6%). Among international buyers, the British, Germans, and French are the largest groups, with other significant cohorts including Moroccans, Italians, Romanians, Belgians, and Dutch buyers represented in smaller percentages.
The number of residential mortgaged homes recorded in the first quarter declined by 2.4% quarter over quarter to 109,406, with the average loan amount about 141,446 euros. In March, residential mortgages rose 14.7% year over year to 34,946 loans from 40,984 a year earlier. The expectation is for loan activity to pick up in coming months. The average interest rate on new mortgage contracts rose to 3.09%, with fixed-rate loans averaging 3.18% and variable-rate loans averaging 2.87%. The typical monthly mortgage payment stood at 683.5 euros, representing about 32.3% of average disposable income, a ratio reflecting the affordability strain for households in the market.
Overall, the data indicate a market that remains active, yet more disciplined. With price growth moderating and borrowing costs higher, buyers and sellers alike show greater caution, and investors keep a close watch on rate expectations and regional price differentials. These dynamics suggest a gradual adjustment rather than a sharp downturn, with price trajectories varying by region and property type. In the United States and Canada, this pattern underscores the importance of location, financing terms, and local demand when assessing value and timing in property markets. Data compiled by the Spanish Registrars provide a useful benchmark for global real estate watchers seeking to understand how regional factors shape pricing and turnover in the months ahead, according to sources in the field.