Spain’s property sector is enjoying its most active start to the year since 2007, with the National Statistics Institute (INE) confirming that 357,533 homes changed hands between January and June 2025. Not since the height of the mid-2000s property boom have sales been this strong. Back then, more than 491,000 homes were sold during the same period, but the drivers and underlying conditions today are very different.
In contrast to the speculative overbuilding and easy credit of the early 2000s, the current market is supported by healthier household finances, stricter lending criteria, and a marked shortage of new construction. This lack of new supply is one of the key factors pushing buyers towards the resale market, which accounted for 77% of all sales in the first half of 2025.
Another notable shift is in the type of demand. While domestic buyers remain active, there is strong participation from international purchasers drawn to Spain for both lifestyle and investment reasons. This is particularly evident in coastal provinces and prime city markets, where foreign buyers are competing for limited stock, keeping prices elevated.
The INE figures also show that property sales have remained robust despite persistent affordability challenges. High prices and rising financing costs have not deterred committed buyers, suggesting that demand is being fuelled as much by cash-rich purchasers as by those requiring mortgages. In many cases, buyers are acting quickly to secure properties before prices climb further or stock becomes even scarcer.
Analysts point out that while transaction volumes are similar to pre-2008 peaks, the market today is structurally more balanced. Oversupply is no longer a defining feature, and planning regulations in many regions have slowed large-scale development. This creates a competitive environment where quality homes — particularly in sought-after locations — attract significant interest soon after coming to market.
Looking ahead, the trajectory of Spain’s property market will depend heavily on how quickly new supply can be delivered, as well as broader economic factors such as interest rates, inflation, and employment growth. For now, the data from the first half of 2025 confirms that buyer appetite remains exceptionally strong, with market momentum likely to continue into the second half of the year.