Property prices hit record highs, foreign buyers hold steady

Spanish property prices reached a new record in 2024, according to the latest data released by Spain’s notaries on February 5th, climbing 12.5% above the previous peak of 2007. The final quarter saw prices rise to an average of €2,164 per square metre, with Madrid, the Balearic Islands, and the Basque Country topping €3,000 per square metre. House sales also hit their highest level since 2007, with nearly 173,000 transactions, driven largely by a 61% surge in new home sales. 

Foreign buyers purchased close to 25,000 homes in the fourth quarter, led by Brits, Germans, and Dutch investors. While the share of Spanish properties purchased by foreigners dipped slightly to 14.48%, they remain a key market force. On the mortgage front, nearly 70% of 2024 home purchases were financed with loans, indicating solid confidence among buyers despite rising costs.