If you're thinking about buying a home, it’s essential to understand the current state of the property market. Should you wait or is now the right time to buy? To help you decide, we've analysed the key indicators: price trends per square metre, interest rates, the Euribor, transaction volumes, mortgages and available financial aid.
Average price reaches €2,517/m2
According to idealista's latest price report, the average value per square metre stood at €2,517 in September 2025, marking an annual increase of 15.3% and a 3.2% rise compared with the previous quarter.
This sharp increase is attributed to a structural imbalance between limited supply and continually growing demand. Prices have reached historic highs nationwide, a trend also evident in several major Spanish cities.
As for rent, the national average reached €14.50 per square metre, up 10.9% year-on-year, although it fell by 1.3% in the last quarter.
Profitability falls, but continues to offer high returns
The gross yield on homes purchased for rental purposes stood at 6.9% in Q3, down slightly from 7.2% at the end of summer 2024, according to a study by idealista. The report also highlights that even the lowest-yielding property still offers returns more than double those of 10-year government bonds, which currently stand at 3.3%.
47,729 sales in August
According to data from the Association of Property Registrars, 47,729 home sales were recorded across Spain in August, representing a 3.5% decline compared with the same month last year.
Although there has not been a fall in sales since July 2024, August is generally considered an unreliable month for gauging short-term trends.
Most experts agree that transactions are likely to continue growing, albeit at a more moderate pace, through the remainder of 2025 and into 2026.
Mortgages grow by 7.8% year-on-year
The mortgage registry also shows a continued rise in lending, with 14 consecutive months of growth. In August, 33,117 new home purchase loans were issued, marking a 7.8% increase compared with the same month in 2024.
Interest rates and the Euribor rise slightly
In October 2025, the European Central Bank kept its key interest rate at 2%, while the Euribor – the benchmark for many variable-rate mortgages – rose slightly to 2.172% in September, up from 2.114% in August.
These changes directly affect mortgage costs, potentially making monthly payments higher or lower for borrowers with variable-rate loans under review. For those seeking greater stability over the repayment period, fixed-rate mortgages are generally recommended.
State home-buying grants
There are several state home-buying grants, including:
- Direct aid through guarantees: Such as the 20% mortgage guarantee for young people and large families.
- Tax credits: Deductions from certain taxes related to buying a property, such as the Tax on Documented Legal Acts (AJD) or the Property Transfer Tax (ITP).
- Mortgage payment grants: Designed to mitigate the impact of adverse economic situations, especially when rising interest rates jeopardise families' ability to afford their mortgage payments.
You may be interested in: What grants and benefits are there for buying a home in 2025?
Home-buying grants by regional government
These are some of the active initiatives (information is only available in Spanish or regional languages):
- Andalusia: Young Housing Guarantee
- Balearics: IBAVI Mortgage Guarantee scheme (until 02/01/2028)
- Basque Country: Grants to buy used free housing (valid until 31/12/2030), guarantees in Álava (until 30/11/2025) and Emantzipa and AES scheme
- Cantabria: Grants for Young People in Rural Areas
- Castile and León: TUYA housing scheme and grants to buy, build or renew a property (until 31/12/2025)
- Castile-La Mancha: Subsidy for young people who buy a rural property
- Catalonia: Emancipation Loan and Mortgage Assistance
- Community of Madrid: First-time home buyers scheme
- Extremadura: DIVA scheme, which aims to rejuvenate the Ambroz Valley
- Galicia: Home-buying subsidies (until 15/10/2025), 20% guarantees (until 31/10/2025) and aid for those affected by forest fires
- La Rioja: Revive La Rioja Plan, 2020-2024 mortgage scheme (valid until 31/12/2028) and grants for young buyers in Calahorra (until 1/11/2025)
- Murcia: Grants for social housing and Youth Guarantee (until 31/12/2025)
- Navarre: Grants to buy used housing for under-35s
- Valencian Community: IVF Guarantee Scheme and municipal grant for first-time home buyers in Tous (until 11/30/2025).
Key factors for buying a home in autumn 2025
If you’re planning to buy a home this autumn, these are the key factors shaping Spain’s property market in 2025:
- Housing prices rise: €2,517/m² on average, up 15.3% year-on-year.
- Profitability dips: Rental yields fall to 6.9% but remain attractive.
- Euribor edges up: 2.172% in September 2025, impacting variable-rate mortgages.
- Home sales decline: 47,729 transactions in August, keeping the market active.
- Mortgage lending grows: 33,117 new loans in August, up 7.8% year-on-year.
- Regional grants available: Most communities provide subsidies and guarantees, especially for young buyers and middle- to low-income families.
Buying a home in Spain is increasingly unaffordable for 80% of buyers
More than three in four prospective home buyers in Spain (76.52%) are unable to purchase a property in their preferred area due to high market prices and limited supply, according to the 2025 Buyer Profile Study in Real Estate Agencies, presented by the Spanish Federation of Real Estate Associations (FAI) at the FAI Conecta Spanish Congress held in Toledo.
Where foreigners are buying property in Spain in 2025
The British remain the largest group of foreign homebuyers in Spain, but interest is growing among citizens of other countries, including Germany, France, the Netherlands and Italy, particularly for properties on the Mediterranean coast, the main draw for foreign buyers.