Prices for living space in Spain continued to trend upward through the first semester of the year, marking an annual rate of 4.8%. The latest assessment from Spain’s leading property appraiser, Tinsa, shows a 0.9% increase in the first quarter and a further 0.6% rise in the second quarter. Although the trajectory remains upward, the pace of gains is gradually easing. The study notes that the price slowdown is stabilizing residence values and reinforcing a general sense of steadiness that has been evident since the beginning of the year.
By the close of the first half of the year, prices stood 20.3% below their peak during the housing bubble and 35% above the trough that followed. The average price per square meter in Spain reached 1,723 euros, which roughly translates to about 130,000 euros for a typical 75-square-meter home.
Prices showed modest advances amid lighter market activity. Sales figures declined by 13% year over year and were 9.5% above the historical average, while the number of new mortgages remained lower, about 25% below the previous year and 1.4% below 2019 levels on a historical basis. According to Tinsa, the improved sales performance was partly supported by a rise in transactions by resident foreigners in Spain. The analysts added that a moderation in trading is expected for the year, and that as inflation cools, household purchasing power should rebound to earlier levels.
In which regions is housing increasing the most?
Across the Balearic Islands, pricing has surged to levels higher than the peak seen during the housing bubble. This region recorded the sharpest price appreciation, with the Canary Islands and Comunidad Valenciana also showing notable gains, each rising by more than 2% in the second quarter and about 7.1% over the last twelve months.
Looking at the twelve-month period, La Rioja led the gains with an 8.3% increase, followed by Aragón at 8%, Cantabria at 7.5%, and Comunidad Valenciana at 7.4%. In the Community of Madrid, the average home price rose by 4.4% in the prior year and by 1.4% in the most recent quarters. In Catalonia, the annual increase stood at 1.4%, the lowest among autonomous communities, and the market remained stable in the second half of the year.
Within the provinces, Almería, Valencia, and Málaga posted the strongest price gains since June 2022, rising 10.9%, 10.7%, and 10.1% respectively. Girona was the only capital city to see prices dip, by 1.4%. By the latest three-month window, Logroño led with a 3.9% rise, followed by Almería at 3.3% and Valencia at 3.0%.
Six communities above the recommended payment threshold
The share of citizens spending more than 35% of household income on housing loans rose from five to six provinces. The Balearic Islands (57.9%), Málaga (46.9%), Madrid (40.8%), Barcelona, Navarra, and Cádiz all exceeded the guideline threshold. The Bank of Spain advises keeping housing costs at or below 35% of income, while residents on average allocate 33% to housing. In certain urban zones the burden is even higher, with Barcelona at 51.2% and Madrid at 46.9%, while Málaga stands at 45.8% and Seville at 39.8%. Valencia (34.9%) and Zaragoza (30.3%) stay under the recommended limit.
The report explains that the highest affordability pressures appear in areas where demand and competition are strongest due to local job markets and tourism draw. The growing weight of urban and coastal tourism, plus second homes, tends to attract investment that pushes prices upward and makes access to housing harder for local households.