Feb 20 • 23:11 UTC 🇪🇸 Spain El Mundo

The interior of Spain boosts the housing market to levels of 2007 amid the cooling of traditional hotspots

The Spanish housing market reached its best performance in 18 years in 2025, primarily driven by inland areas rather than traditional urban centers.

In 2025, Spain's housing market experienced a remarkable resurgence, marking its best performance in 18 years with over 700,000 transactions, a figure not seen since the peak of the housing bubble in 2007. Surprisingly, the growth was not concentrated in the traditional urban hotspots but rather in inland regions, where there were substantial increases in property sales. For instance, in Castilla y León, home sales surged by 18.9%, translating to more than 5,800 transactions, while Castilla-La Mancha reported a 17.8% increase with a total of 35,379 homes sold.

The trend of rising property prices is also noteworthy, with the average housing price reaching a new record high, climbing 13.1% in 2025. This escalating price trend, combined with high transaction volumes, indicates a robust recovery in the Spanish real estate sector. Other regions like La Rioja and Extremadura also witnessed significant growth, with increases of 16.3% and 16.1%, respectively. The rebound in these areas suggests a shift in demand from urban centers to more rural and interior regions, potentially reshaping the dynamics of the Spanish housing market.

The creation of the new fund 'España Crece' aims to address housing issues that, according to estimates, could take 45 years to resolve at the current construction pace. This highlights the growing challenges associated with housing availability as demand continues to rise in these inland areas. The effects of this real estate recovery could have wider implications for economic growth and urban planning in Spain, signaling a need for policy adjustments to accommodate the changing dynamics of property demand across the country.

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