Housing prices in Spain kept rising throughout 2025, and by the end of the year the most noticeable growth was recorded in the autonomous community of Madrid – 19.6% year-on-year.
- Second place went to the Valencian Community (15.9%),
- followed by Cantabria (15.8%)
- and the Balearic Islands (14.1%).
Prices in the Valencian Community and in Valencia
According to IMIE Mercados Locales statistics prepared by the valuation company Tinsa, the average price of residential property in the Valencian Community was €1,703 per square metre. It should be borne in mind that this figure is an average across the entire supply in the region, both new-build and resale housing, so real prices in the most in-demand areas differ significantly from it.
A vivid example is the city of Valencia, where the average price per 1 sq. m is €2,639 after a 17.5% increase in Q4 2025 compared to the same period in 2024. That means a standard 90 sq. m apartment costs about €237,510, and in many cases this amount is noticeably higher for homes with similar characteristics in more prestigious areas. This statement is also true for districts where housing previously had lower prices but rose sharply over the past year due to interest from foreign investors and “digital nomads”.
Valencia: dynamics by district and price levels
As for price growth by districts of the Valencian Community’s capital, the report shows annual changes ranging from 7% to 29.1%. This indicates a strengthening of the already observed price growth, since in the third quarter the range fluctuated from 5.5% to 23.4% compared to the previous quarter.
Year-on-year price growth exceeded 20% in the districts of:
- Rascanya,
- La Saïdia,
- Poblados del Oeste
- and L’Olivereta.
Quarterly fluctuations were noted from 1.5% in Poblados del Norte to 7.6% in Rascanya. The most expensive properties, priced above €3,000 per square metre, are located in Ciutat Vella, Eixample and El Pla del Real.
In the districts of Rascaya, Poblados del Sur, Poblados del Oeste and Poblados del Norte, the cheapest apartments are found, with prices not exceeding €2,000 per 1 sq. m. Excluding inflation, prices in all districts have not reached the peaks recorded in 2007.
Comparison with Madrid, Barcelona, Seville and Malaga
Despite the significant price growth in the Valencian Community and in Valencia, they are still well below those in Madrid and Barcelona. In Spain’s capital, the most expensive housing priced above €5,000 per 1 sq. m is concentrated in Salamanca, Chamberí, Chamartín, Centro, Retiro, Moncloa-Aravaca and, for the first time, Arganzuela. The lowest average prices (below €3,000/m2) are seen in Usera, Puente de Vallecas and Villaverde.
In Barcelona, the highest average prices (from €5,000/m2) are recorded in Sarrià-Sarrià-Sant Gervasi, and the lowest (below €3,000/m2) – in Nou Barris, Horta-Guinardó, Sant Andreu, Sarrià-Sant Gervasi and Sants-Montjuic. In this case, district prices show annual growth from 6.2% to 12.6% compared to 5.3–9.4% in the previous quarter. Housing rose by more than 8% over the year in Nou Barris, Horta-Guinardó, Sant Andreu, Sarrià-Sant Gervasi and Sants-Montjuic.
In a price range similar to Valencia, the property markets of Seville and Malaga are moving. In Seville, annual fluctuations range from 3.6% to 17%; the price threshold in the most expensive districts exceeds €3,000/m2, while in the cheapest it is below €2,000/m2. However, the situation in Malaga is more tense, since this indicator is below €2,000/m2 in only one district.
Capitals and provinces: records, Alicante and cities of the Valencian Community
In Q4 2025, the nominal peaks of the 2007 “bubble” were exceeded in 10 provincial capitals (7 in the previous quarter). Added to Palma, Madrid, Malaga, Santa Cruz de Tenerife, Valencia, Pontevedra and Melilla were La Coruña, San Sebastián and Alicante. However, taking inflation into account, none of these capitals reach those maxima; Palma is the closest, trailing by 7%.
In the ranking of the most expensive capitals, Madrid is in first place (€4,883/m2), followed by San Sebastián (€4,791/m2) and Barcelona (€4,270/m2). The most budget-friendly housing is concentrated in Zamora (€1,171/m2), Ciudad Real (€1,220/m2) and Lugo (€1,232/m2).
Among Spanish provinces, second place in price growth after Madrid (19.6%, €3,799/m2) is held by Alicante, where housing rose by 17% over the year to €1,823/m2. Nevertheless, in nine provinces the average housing price exceeds the average for Alicante.
As for provincial capitals in the Valencian Community, in Valencia the price per 1 sq. m is €2,639, in Alicante – €1,980, and in Castellón – €1,291. Compared to the historical maxima recorded in 2007–2008, prices in Valencia are already 9.2% higher, and in Alicante – 0.9% higher. The case of Castellón is particularly noteworthy, where current prices are 31.7% lower.
Municipalities: Benidorm, Torrevieja, Orihuela and Torrent
In addition, Tinsa analyses the municipal market taking into account population density and sales volume, but excluding provincial capitals. In the Valencian Community, first place is held by Benidorm – €2,398/m2, which is 19.1% higher than last year. Benidorm is followed by Torrevieja (€1,858/m2) and Orihuela (€1,816/m2), also in the province of Alicante. In fourth place is a city in the province of Valencia – Torrent (€1,572/m2).
Housing affordability and mortgage burden
Finally, a theoretical annual financial burden ratio was analysed – an indicator modelling the share of disposable income that an average household would have to spend to pay the first year of a mortgage (80% of the value of an average home). The purpose of this indicator is to assess how affordable the purchase of a first home is for an average family in different regions of the country. As it turned out, in the capital of the Valencian Community, families spend more than 45% of their income on mortgage payments in the first year.
At the provincial level, the most strained situation is observed in Malaga and the Balearic Islands – 58% and 49%, respectively. They are followed by Madrid (43%), Cádiz (42%) and Alicante (41%). In eight provinces (those listed above, as well as Seville, Cantabria and Barcelona), a reasonable affordability level estimated at 35% is exceeded.
This level is exceeded in the capitals of 15 out of 52 provinces, and most strongly – in Cádiz (58%), Madrid (56%), San Sebastián, Malaga (55% each) and Barcelona (53%). Next, with indicators from 40% to 50%, are Seville, Valencia, Granada, Santander, Palma and Salamanca, and in the 35–40% range are Pamplona, Bilbao, Alicante and La Coruña. The only one of the six major Spanish capitals maintaining reasonable affordability levels – namely, 30% of average household disposable income – is Zaragoza.
If you are planning to buy property, use the services of property selection in Spain and buying property in Spain. To calculate financing terms, the mortgage in Spain service is available, and for homeowners – concierge service in Valencia.
