Over the past decade, the Spanish real estate market has undergone radical changes. Housing prices, which reached their lowest point in 2015 – after the sharp fall caused by the bursting of the “bubble” – began to rise rapidly, leading to an increase of 80.6%. In addition, it should be noted that growth accelerated at the end of this period: by 8.5% in 2024 and by 12.7% in 2025.
Thus, as noted in a recent report prepared by Pisos.com based on Eurostat data, the cost per square meter in Spain increased more intensively than in the EU (61.9%) and in the eurozone (54.1%). This dynamic is explained by growing purchase demand combined with an extremely limited supply.
At present, the Bank of Spain estimates the accumulated housing deficit at 700,000 properties, and the figures give no reason to believe that this situation will change. Last year, 104,500 new households were created, while construction was started on only 111,548 apartments.
Why the purchase and sale market has become so active
According to Gonzalo Bernardos, professor of economics and director of the master’s program in real estate at the University of Barcelona, “one of the main differences between Spain and the rest of Europe is the low level of housing purchases by young people over the past decade. Job instability, low wages and excessive current expenses do not allow them to save and buy an apartment, despite affordable prices”.
This is compounded by the fact that government policies in recent years – such as price controls or the anti-eviction law – have led to legal uncertainty. Rental supply has decreased, while rents have reached maximum levels. In this situation, due to the decline of the rental segment, the purchase and sale market has become extremely active.
Spain outpaced the largest eurozone economies
In Spain, prices have risen the most among the main economically developed eurozone countries over the past ten years, significantly ahead of Italy (16.2%), France (27.3%) and Germany (52.7%). In Germany’s case, prices did not correct downward and began a path of strong growth, which led to a doubling of nominal 2007 values by mid-2020. However, these circumstances made the market more sensitive to rate increases, as a result of which housing became cheaper in 2023 (-8.4%) and 2024 (-1.5%). After these declines, prices rose by 3.2% in 2025.
Price dynamics in EU countries
Overall, the situation in the EU real estate market is very diverse. Hungary became the growth leader over the past decade – 266.6%. During this period, housing values increased by more than 10% for eight years and ended 2025 with growth of 18.3%. A clear process of economic convergence is observed here, with wages rising and the middle class strengthening, while real estate prices still remain relatively low.
The second European country where residential real estate has risen the most is Portugal – 163.9%. It followed a model similar to Spain’s, but in a more pronounced form. Portugal shares with Spain its attractiveness as a place for permanent residence and tourism, but it is a smaller market with less supply.
In addition, over the past decade, the country encouraged tax incentives for foreigners buying housing in order to revive investment after the debt crisis. Regions such as Lisbon with its suburbs and the Algarve concentrated this international demand and became the most dynamic destinations. Most of the incentives have been abolished in recent years, but prices continue to rise.
Next come Iceland (163.1%), Lithuania (158.1%), Bulgaria (149.2%), Czechia (145.4%), Croatia (126.5%), Estonia (120.7%), Poland (116.8%), the Netherlands (115.1%), Latvia (114.3%), Slovenia (108.9%) and Slovakia (104.2%). In total, housing prices have more than doubled in 13 countries (in the Hungarian market, they have essentially tripled). In turn, the most modest growth during this period was observed – in addition to the already mentioned Italy (16.2%) and France (27.3%) – in Sweden (33.4%), Belgium (44.9%) and Cyprus (50.9%).
At the other end of the spectrum is Finland – the only country where prices fell between 2015 and 2025, namely by 1.1%. Housing prices in this Scandinavian country, which is experiencing an economic and debt crisis, have been correcting for three consecutive years. The economy suffered from the consequences of the breakdown of trade and energy ties with neighboring Russia after the invasion of Ukraine (in 2022), and the economic downturn led to rising unemployment and paralyzed housing demand.
