Spanish families are borrowing record amounts for mortgages amid a housing market boom, although they are purchasing significantly fewer homes than in 2009.
In Spain, there is a notable surge in the collective enthusiasm for buying homes, reflected in the increasing amounts of money families are requesting from banks for mortgages. In 2025, Spanish households signed mortgage agreements amounting to €80.044 billion, which is a staggering 33% increase from the previous year and marks the largest growth recorded since such statistics have been tracked. This financing facilitated the acquisition of over half a million homes, showing a robust recovery in the mortgage market. However, this figure is striking when compared to 2009, a peak pre-crisis period when similar amounts were borrowed but for 150,000 more homes.
The current mortgage market dynamics reveal a remarkable contrast to the economic climate of 2009, characterized by a housing bubble that ultimately burst. Despite the volume of borrowing being comparable, the reality is that families today are purchasing significantly fewer homes, indicative of a tightened housing supply and escalating prices. The resurgence in mortgage lending follows a tough year in 2023, when interest rates peaked at a historic 4.5%, causing a temporary stall in the market.
As the housing market stabilizes and revitalizes, largely driven by the economic vibrancy across Spain, the implications of this trend raise questions regarding housing affordability and the potential for another economic bubble. Increased borrowing by families, although reflecting confidence in the market, also signals a concerning trend about wage growth not keeping pace with real estate prices, which could lead to future financial strain for these homeowners.
