May 30, 2025

Home sales soar to highest level since 2007

The real estate market is in full acceleration, with the highest level of home sales in the past 18 years, despite prices continuing to rise. During the first quarter of the year, 183,140 transactions were recorded in Spain — 20.7% more than in the first three months of 2024 and the highest figure since 2007. This according to data from the INE (National Statistics Institute) published in May.

March stands out as the most active period so far this year. That month saw 62,808 transactions, 40% more than in March of last year, driven by interest rate cuts. Home sales hadn’t grown at such a fast pace since October 2024, marking the ninth consecutive monthly increase.

This growth comes after the market kicked off 2025 with an 11% increase — reaching 60,650 homes sold in January, the highest figure for that month since 2008. In February, the increase accelerated to 13.9%, with 59,682 transactions — the highest for that month since 2007.

By type of housing, new home purchases rose the most once again, with 14,562 transactions — a 64.2% increase and ten months of continuous growth. Meanwhile, second-hand homes — which continue to dominate the market, accounting for nearly 77% of total sales — grew by 34.8% in March to 48,246 units.

Several factors contribute to these increases. In addition to the well-known drop in interest rates, many people who would prefer to rent are unable to find homes at reasonable prices. Others are rushing to buy due to fears of further price increases. This explains José García Montalvo, Professor of Economics at Pompeu Fabra University, in the newspaper La Vanguardia. Added to this is the state of the Spanish economy, which is growing and creating jobs. “The performance of the real estate sector reflects the broader economic situation,” García Montalvo adds.

Of the 358,000 home sales and purchases that took place in Spain in 2024, 139,100 were made by foreigners, that's 10% more than in 2023.

Source: La Vanguardia