Housing prices across Spain sustained their upward trajectory throughout 2025, with the most significant growth recorded in the autonomous community of Madrid, which saw a 19.6% year-on-year increase.
- The Valencian Community followed closely in second place with a 15.9% increase,
- Cantabria ranked third at 15.8%,
- and the Balearic Islands came fourth with a 14.1% rise.
Housing Prices in the Valencian Community and Valencia City
According to the IMIE Mercados Locales statistics compiled by valuation firm Tinsa, the average price for residential property in the Valencian Community stood at €1,703 per square metre. This average reflects a mix of both new-build and resale properties across the region, meaning prices in highly sought-after areas can vary substantially.
For instance, in the city of Valencia, the average price per square metre reached €2,639 following a 17.5% increase in the fourth quarter of 2025 compared to the same period in 2024. This translates to an approximate cost of €237,510 for a standard 90 square metre apartment. Prices can be considerably higher in prestigious neighborhoods or for homes with similar features in such areas. Notably, districts that previously had lower prices have experienced sharp increases over the past year, driven by growing interest from foreign investors and digital nomads.
Price Dynamics by District in Valencia
Price growth across Valencia’s districts ranged from 7% to 29.1% year-on-year, indicating an acceleration compared to the third quarter’s range of 5.5% to 23.4%. Districts with price increases exceeding 20% include Rascanya, La Saïdia, Poblados del Oeste, and L’Olivereta.
Quarterly price changes varied between 1.5% in Poblados del Norte and 7.6% in Rascanya. The most expensive properties, with prices above €3,000 per square metre, are found in Ciutat Vella, Eixample, and El Pla del Real.
Conversely, the most affordable apartments, priced below €2,000 per square metre, are located in Rascanya, Poblados del Sur, Poblados del Oeste, and Poblados del Norte. Even after adjusting for inflation, prices in all districts remain below the peaks recorded in 2007.
Comparative Overview: Madrid, Barcelona, Seville, and Malaga
Despite the notable price increases in the Valencian Community and Valencia city, prices remain significantly lower than those in Madrid and Barcelona. In Madrid, the most expensive housing, priced above €5,000 per square metre, is concentrated in Salamanca, Chamberí, Chamartín, Centro, Retiro, Moncloa-Aravaca, and, for the first time, Arganzuela. The least expensive areas, with average prices below €3,000 per square metre, include Usera, Puente de Vallecas, and Villaverde.
Barcelona’s highest average prices, exceeding €5,000 per square metre, are found in Sarrià-Sant Gervasi, while the lowest, below €3,000 per square metre, are in Nou Barris, Horta-Guinardó, Sant Andreu, Sarrià-Sant Gervasi, and Sants-Montjuic. Annual price growth in these districts ranges from 6.2% to 12.6%, up from 5.3% to 9.4% in the previous quarter. Notably, housing prices rose by more than 8% year-on-year in Nou Barris, Horta-Guinardó, Sant Andreu, Sarrià-Sant Gervasi, and Sants-Montjuic.
Seville and Malaga exhibit price ranges similar to Valencia. In Seville, annual price fluctuations range from 3.6% to 17%, with the most expensive districts exceeding €3,000 per square metre and the cheapest below €2,000 per square metre. Malaga’s market is tighter, with only one district priced below €2,000 per square metre.
Provincial Capitals and Records: Alicante and Other Valencian Cities
By the fourth quarter of 2025, ten provincial capitals surpassed the nominal price peaks of the 2007 housing bubble, up from seven in the previous quarter. Alongside Palma, Madrid, Malaga, Santa Cruz de Tenerife, Valencia, Pontevedra, and Melilla, La Coruña, San Sebastián, and Alicante joined this group. However, when adjusted for inflation, none of these capitals have yet reached their historical maxima; Palma is the closest, trailing by 7%.
In the ranking of the most expensive provincial capitals, Madrid leads with €4,883 per square metre, followed by San Sebastián (€4,791/m2) and Barcelona (€4,270/m2). The most affordable housing is found in Zamora (€1,171/m2), Ciudad Real (€1,220/m2), and Lugo (€1,232/m2).
Among Spanish provinces, Alicante ranks second in price growth after Madrid, with a 17% increase to €1,823 per square metre. Despite this, nine provinces have average housing prices exceeding Alicante’s.
Within the Valencian Community’s provincial capitals, Valencia’s average price per square metre is €2,639, Alicante’s is €1,980, and Castellón’s is €1,291. Compared to the historical highs of 2007–2008, Valencia’s prices are 9.2% higher, Alicante’s are 0.9% higher, while Castellón’s remain 31.7% below those peaks.
Municipal Markets: Benidorm, Torrevieja, Orihuela, and Torrent
Tinsa’s analysis of municipal markets, excluding provincial capitals but considering population density and sales volume, highlights Benidorm as the leader in the Valencian Community with an average price of €2,398 per square metre, a 19.1% increase over the previous year. Following Benidorm are Torrevieja (€1,858/m2) and Orihuela (€1,816/m2), both in Alicante province. Torrent, in Valencia province, ranks fourth with €1,572 per square metre.
Housing Affordability and Mortgage Burden
Theoretical analysis of the annual financial burden ratio—representing the share of disposable income an average household would allocate to mortgage payments in the first year (assuming an 80% loan-to-value mortgage)—reveals affordability challenges. In Valencia city, households spend over 45% of their income on mortgage payments during the first year.
At the provincial level, the most strained affordability is observed in Malaga and the Balearic Islands, with ratios of 58% and 49%, respectively. Madrid (43%), Cádiz (42%), and Alicante (41%) also exceed the generally accepted affordability threshold of 35%. Eight provinces, including these and Seville, Cantabria, and Barcelona, surpass this level.
Among provincial capitals, 15 out of 52 exceed the 35% affordability threshold. The highest burdens are in Cádiz (58%), Madrid (56%), San Sebastián and Malaga (55% each), and Barcelona (53%). Capitals with mortgage burdens between 40% and 50% include Seville, Valencia, Granada, Santander, Palma, and Salamanca. Those with burdens between 35% and 40% include Pamplona, Bilbao, Alicante, and La Coruña. Notably, Zaragoza is the only major Spanish capital maintaining reasonable affordability, with mortgage payments representing 30% of average household disposable income.