3 out of 10 homes in Spain were bought without a mortgage last year, and 1 in 7 buyers were foreigners

Nearly 97,000 homes were sold to international buyers last year, and around 3 in 10 purchases were made in cash, even as house prices rose across the country

Spain's property market saw a busy year in 2025, with sales reaching levels not seen since before the property crisis of 2008. International buyers continued to play an important role, making up around one in seven home purchases. Over the year, nearly 97,000 homes were sold to international buyers, showing that Spain is still an attractive destination for people looking to buy a property abroad.

Cash purchases also stood out in 2025. Around three out of every 10 homes were purchased without a mortgage, which totals roughly 206,500 properties. Many of these buyers used savings, sold a previous property, or received an inheritance. The source of the funds must be recorded in the property deed. This proportion is only slightly lower than in 2024, even though house prices increased by 9.5 % and interest rates fell during the year.

The last quarter of 2025 was particularly busy, with 178,270 homes sold. Most of these were second-hand properties, with 141,450 resales compared to 24,200 newly built homes. With new builds hard to come by at the moment, the resale market is where most of the activity is happening.

Most people still take out a mortgage to buy their property. In the final quarter, 132,385 loans were signed with an average value of €171,177, a record high. There are significant differences between regions. Madrid and the Balearic Islands had the highest average mortgages at €277,680 and €271,874, while Extremadura and Castilla-La Mancha remained below €100,000. Interest rates fell to an average of 2.97 % by the end of the year.

Despite this, rising property prices mean that monthly mortgage payments continue to take up a large portion of income. Nationally, the average mortgage represents about one-third of a typical salary. In Madrid and the Balearic Islands, it rises to between 43 and 55%, while in Murcia, La Rioja and Extremadura it stays below 25%.

House prices also reached record highs in 2025. The average price per square metre was €2,354. But in places like Madrid, the Balearic Islands, País Vasco and Cataluña, prices remained the most expensive, with some city centres exceeding €5,283 per square metre.

With the government announcing plans to streamline building licenses and to build more affordable homes, 2026 could bring some real changes to the housing market. 

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