Canarias: Rising Housing Prices
Five autonomous communities have surpassed the peak purchase prices reached during the housing bubble years by 2025. These regions are Andalucía, the Balearic Islands, Canarias, the Comunitat Valenciana, and Madrid. As of July 2025, they have recorded the highest prices for second-hand homes…
Balearic Islands: New Records
The Balearic Islands have exceeded the peak price for over two consecutive years. In fact, in July 2025, the average price is 84% higher than the maximum reached in April 2007. At that time, the peak price was €2,762/m², and now it stands at €5,069/m².
This means that in 2007, purchasing a standard home in the Balearic Islands cost €221,000, while in 2025, the average price has risen to €400,000. Moreover, in May of this year, the Balearic Islands crossed the €5,000/m² barrier for the first time in history, making it the autonomous community with the most expensive square metre for buying a home in all of Spain.
Canarias: Continuous Growth
Canarias has also been breaking price records for over two years, surpassing the levels of the 2007 bubble. Specifically, the current price is 47% higher than during the real estate boom.
When Canarias reached its peak price in May 2007, the average was €2,155/m², and a standard home cost around €172,000. Now, the average price stands at €3,157/m², with an average home of 80 square metres costing over €252,000.
Community of Madrid: Consistent Increases
The Community of Madrid currently exceeds the peak price reached in January 2007 by 22%. Back then, the square metre price in the capital was €3,970, and a typical home cost €317,000. As of July 2025, the average price is €4,858/m², with the average home costing €388,000.
Andalucía: Recent Surges
Andalucía has recently surpassed its peak price from April 2007 and is now 4% more expensive than during the real estate boom. In 2007, the average cost of a home in Andalucía was €200,700, with the average price at €2,509/m². In 2025, the price is €2,610/m², making an average flat cost €208,800.
Comunitat Valenciana: Gradual Increase
The Comunitat Valenciana has just exceeded the peak price from April 2007. It is currently 0.2% higher than that figure. For the first time, it has reached €2,436/m² in July 2025, with the average home costing €195,000. The previous peak in 2007 was €2,430/m².
Overview of Housing Prices in Spain
“The price of second-hand homes in Spain is now less than 10% from reaching historic highs. Several communities, such as Andalucía, Madrid, the Balearic Islands, Canarias, and the Comunitat Valenciana, have already surpassed the prices recorded in 2007. This indicates that their citizens are facing unprecedentedly high prices. The same situation exists in provinces and cities with high population attraction and tourist areas, where demand pressure is greater. Housing accessibility is at risk as the salary effort required by buyers is at an all-time high. Unless supply increases, price pressure will persist. If the current rate of increase continues, it is likely that by next year, all of Spain will reach peak prices,” explains María Matos, Director of Studies and spokesperson for Fotocasa.
Other Communities: Distance from Peak Prices
In contrast, other communities are still far from surpassing the peak prices of the housing bubble. The community with the smallest difference between current prices and the 2007 peak is Galicia, which is currently 15% below the prices of the boom years. Cantabria follows with an 18% decrease, while both Catalonia and the Basque Country sit 20% below their maximum prices.
At the other end of the spectrum, Castilla-La Mancha, Aragón, and La Rioja are considerably far from their historical highs, standing 43% and 42% below the 2007 prices, respectively.
Eleven Provincial Capitals Reaching New Heights
In terms of provincial capitals, 11 have reached peak prices at some point in 2025. These include Málaga, Teruel, Alicante, Valencia, A Coruña, Madrid, Santa Cruz de Tenerife, Las Palmas de Gran Canaria, San Sebastián, Palma de Mallorca, and Pontevedra.
