Spain's property market surges 12.9% annually, second only to Portugal in Europe

While Germany and France stagnate, Spain's real-estate market continues its steady ascent. According to Eurostat data for Q4 2025, prices in Spain rose 12.9% year-on-year. By comparison: France +1%, Germany +3%, Italy +4%, Britain +2.4%. Only Portugal outpaced Spain, posting 19% growth.

Over five years, the picture is even more striking. Since the start of 2021, Spanish property has appreciated 46%. This is nearly on par with Ireland and Cyprus, and substantially ahead of France, Germany, Italy and Sweden.

Why is this happening? Southern Europe has become the locomotive of the European market. Spain outperforms its northern neighbours on three fronts: climate, lifestyle and prices. Even Germans, whose prices have barely moved in five years, remain the largest group of foreign buyers in Spain. This suggests that investment logic is receding—the desire to live in the sun is taking centre stage.

That said, local markets in Madrid, the Balearic Islands and Málaga are beginning to show signs of overheating, as in Portugal. Overall, however, Spain appears more balanced than its neighbours.

Source: Spanish Property Insight