The price of free housing in Spain increased by 12.7% year -on -year between April and June 2025, according to the latest data from the National Statistics Institute (INE), marking the greatest increase in 18 years, since the first quarter of 2007. These data are caused mainly by the strong rise of second -hand housing and in a context in which there are not enough rooms for the Spaniards in the middle of a reactivation of demand.
During the second quarter of the year, housing prices grew 4% compared to the previous quarter, the greatest quarterly increase in a decade. The used housing was the one that most increased, with an increase of 12.8% year -on -year and 4.2% quarterly, while the new increased 12.1% interannual and 2.6% compared to the previous quarter.
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With this new fact, the price of housing chains 45 consecutive quarters of interannual increases, consolidating an upward trend initiated after the financial crisis. The last three quarters have registered increases above 10%. You just have to see the following graphic to see the clear tendency of the last quarters:
Why the price of housing is triggered
This huge price increase comes just when the shortage of supply and high demand floods the real estate market, to which the accumulated deficit of between 400,000 and 450,000 homes between 2022 and 2024 is added, according to estimates of the Bank of Spain. And the thing does not stay there, since 2025 records an additional need of 150,000 units, which would raise the deficit to 600,000 homes in total, if the latter data is taken into account.
In addition, the recent relaxation of interest rates and lowering mortgages are promoting sale, contributing to further stressing the market.
How much the house goes up in each community
The increase has been widespread throughout the country, with two -digit increases in all autonomous communities. The greatest increases were recorded in Murcia (14.6 %), Aragon and La Rioja (13.7 % each). They also highlighted Castilla y León and Andalucía (13.6%), Asturias (13.5%), Melilla (13.4%) and Madrid (13.3%).
Below the national average, although equally relevant, regions such as Catalonia (11.6%), Canary Islands (11.6%), Balearic Islands (11.7%), Castilla-La Mancha (11.3%) and Cantabria (10.8%) were placed.
Real estate portals anticipate that this upward trend could be intensified during the rest of 2025, especially if structural mismatch between supply and demand is not corrected. In this sense, the Minister of Housing, Isabel Rodríguez, has recently defended the need for public intervention in the market, stating that “the market alone does not work.”
The Spanish residential market faces a period of strong upward pressure in prices, driven by structural and short -term factors. The evolution of the coming months will depend largely on the measures taken to increase the offer, contain prices and facilitate access to housing, especially for the most vulnerable groups.