Spain's property market has crossed a symbolic line: according to the latest bulletin from the Ministry of Housing's Observatory of Housing and Land, home prices closed 2025 around 7% above the highs set during the 2007 boom. Open-market housing reached 2,230 €/m² after rising 13.1% over the year, the fifth consecutive year of growth. Are we facing another bubble? The short answer is that this cycle looks very little like the previous one.
The numbers behind the new record
In 2007, at the height of the euphoria, the square metre touched 2,085.5 €. Today it comfortably exceeds that. Transactions are breaking records too: 752,098 sales were signed in 2025, up 5.1% year on year and the highest volume since that very same 2007. On top of this, lenders such as BBVA forecast further rises of close to 7% for 2026, and stretched markets like Madrid already top 5,980 €/m².
Why 2025 is not 2007
The underlying difference is the engine. The boom of nearly two decades ago was inflated by easy credit, an oversupply of new-builds and speculation. The current cycle is almost the opposite: prices are driven by a shortage of supply, with far less built than is demanded, against a more solvent buyer and far stricter lending. There is no glut of homes waiting for a buyer; there is too little housing for those who want to buy.
The Costa del Sol, at the front line of demand
Malaga and the Costa del Sol host some of the country's most dynamic markets. The blend of international demand, climate, infrastructure and finite land keeps pressure on prices above the national average in many areas. For buyers, this reinforces one idea: waiting for prices to drop has not been the best strategy in recent years. For owners looking to sell, the timing is favourable. And for investors, the mix of capital appreciation and rental demand remains attractive, always with a realistic, area-by-area analysis.
How to read this market with a level head
A record is not a synonym for a bubble, but it is not a free-for-all either. Buying well still rests on the usual fundamentals: location, asset quality, a price consistent with the area and a realistic financing plan. The difference is that today it pays to move with good information and speed, because the right property at the right price does not wait around.
Conclusion
Home prices surpassing 2007 levels says more about the structural strength of demand than about an imminent risk of correction. On the Costa del Sol, where supply is limited and international interest is not letting up, the key is to decide with sound advice. At EVS we analyse every area and every opportunity with you, whether you want to buy your home, sell at the best moment or invest. Let's talk.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
