Over the past five years, the Spanish property market has changed dramatically. Affordable homes are becoming increasingly scarce, while high-value properties are gaining ground across almost all provinces.

According to the latest data from the Spanish Land Registry and Ministry of Housing, homes priced below €200,000 have fallen from over 60% of listings in 2020 to less than 38% in 2025.
Meanwhile, properties priced above €500,000 now make up nearly a quarter of all listings (23.5%), doubling their market share in just five years.

A market with rising prices

Higher land costs, limited new construction, and growing demand—both local and international—have driven housing prices upward across Spain.
On average, property values have increased by 45–50% since 2020, with especially strong growth in Valencia, Andalusia, and the Balearic Islands.

Experts note that affordable homes “fly off the market” within weeks, while premium listings take longer to sell. As a result, luxury homes now account for a larger share of the total housing stock, even if they represent fewer transactions overall.

Price range evolution

• Under €200,000 → dropped from 60% to 37.6% of total listings.
• €200,000–€400,000 → now represent over 30% of the market.
• €400,000–€500,000 → steady rise to 7.5%.
• Over €500,000 → doubled their share, reaching 23.5%.

In cities such as Madrid, Barcelona, Palma, San Sebastián, and Málaga, more than half of all properties for sale now exceed €500,000.
Along the Costa Blanca and Costa Cálida, prices are still more moderate but clearly trending upward—especially in coastal towns with high international demand.

Cities where affordable housing has nearly vanished

The sharpest declines in homes under €200,000 are found in mid-sized and tourist-oriented cities:

• Málaga: from 45% to 11% of listings.
• Valencia: from 59% to 22%.
• Granada, Pontevedra, and Albacete: drops of over 30%.
• San Sebastián and Palma: only 1% and 4%, respectively, remain below €200,000.

Inland provinces such as Cuenca, Teruel, or Ciudad Real still offer more affordable options, though they are also seeing gradual declines.

Premium homes are taking over

At the same time, the luxury segment has doubled its market share in more than half of Spain’s provincial capitals.
In Madrid, properties above €500,000 now make up over 50% of listings, and in Barcelona, nearly 41%.
Palma and San Sebastián lead the ranking, with over 60% of their market in the high-end category.

This surge is driven by foreign investment, second-home buyers, and rising demand for exclusive coastal areas such as Moraira, Jávea, Orihuela Costa, Los Alcázares, and Cartagena, where European buyers seek premium finishes and Mediterranean views.

What this means for buyers and sellers

• Buyers: must act quickly—affordable, well-located homes sell within days.
• Sellers: face a favorable environment, particularly in the mid- to high-end range where international demand continues to rise.
• Investors: still find strong returns in coastal regions like the Costa Blanca and Costa Cálida, both through rentals and long-term appreciation.

Market trends for 2025

• New-build housing prices up 7.8% year-on-year.
• Second-hand homes up 4.9%.
• Foreign buyers account for 18–20% of all property purchases.
• Mortgage volumes slightly down (-3%), but with higher average loan amounts.

Spain’s housing market is shifting: affordable homes are harder to find, while mid- and high-end properties dominate.
Limited land supply, rising construction costs, and foreign investment are shaping a new reality where premium properties define the next decade.

At Munfort Inmobiliaria, we help clients buy or sell homes across the Costa Blanca and Costa Cálida, using data-driven strategies and local expertise.
Whether you’re investing, buying a second home, or selling a property, our team ensures you make the best decisions with confidence.

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