Prices for second-hand properties in Spain continue to rise - reaching a new all-time high in the second quarter of 2025. According to the latest price index from property portal idealista, the average price per square metre is €2,438 - an increase of 14% compared to the previous year. The increase is particularly strong in the provinces of Valencia and Alicante.
Valencia and Alicante among the top growth regions
With an annual increase of 18.2% in Valencia and 16.7% in Alicante, both provinces are among the most dynamic markets in Spain.
The trend is clearly pointing upwards: Both regions are not only recording double-digit growth, but are also well above the national average. In the past quarter alone, prices rose by 5.5% nationwide - which means that the market will remain tight in the short term.
In Valencia, the capital of the same name, prices even rose by an impressive 20.1%, making it the second most expensive capital city after Madrid. Alicante City also reported a marked increase of 16.4% - putting it well ahead of other major cities such as Barcelona (11.1%) and Bilbao (10.4%).
Causes: Demand, shortage, financing
According to idealista spokesperson Francisco Iñareta, a „perfect storm constellation“ is responsible for the current price trend: consistently high demand meets a short supply. Added to this are favourable financing conditions and a tight rental market, which is also forcing many buyers into the market. In coastal regions in particular, buyers and sellers alike are feeling the pressure - flats are changing hands within hours, often at prices that were unthinkable just a few months ago.
A look around the country: where it remains favourable - and where not
While prices are rising in almost all regions of Spain, there are also exceptions: Girona (-5.5%) and Ourense (-0.3%) are the only provincial capitals to record declines. The weakest growth regions also include Tarragona (+3.3%) and Badajoz (+3.9%).
San Sebastián remains the most expensive city in Spain at over €6,000/m², followed by Madrid (€5,642/m²) and Barcelona (€4,920/m²). Although Alicante's price level is below these record values, it is the most dynamic of the mid-range markets - which makes the region particularly interesting for investors.
Balearics most expensive - but Valencia is catching up
At €4,996/m², the Balearic Islands are currently the most expensive autonomous region, followed by Madrid (€4,289/m²) and the Basque Country (€3,227/m²). However, the Valencia region is also catching up - not only the capital, but also neighbouring coastal towns and inland cities are recording double-digit price increases in some cases.
Conclusion: good location, fast pace - but also risks
The region around Valencia and Alicante is currently one of the most sought-after property markets in Spain. Anyone buying here is investing in a highly dynamic market - but must be prepared for continued short supply and rapid decision-making processes. Meanwhile, critics are warning that the lack of new construction could further fuel the formation of price bubbles.
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