MWCC and DS Ranking have presented their report tracking developments in the Spanish housing market. Housing prices in Spain continued their upward trend in June, with a monthly increase of 2% and a year-on-year increase of 14%, according to the latest data published by Idealista. Despite this momentum, there are signs of a slowdown in demand from resident households.

The number of mortgages taken out rose by 7.9%, driven by a Euribor that remains at low levels, standing at 2.1%, 41% less than a year ago. The average amount of mortgage loans reached €158,153, 12.7% more than in 2024.

Meanwhile, employment, which is closely linked to the evolution of housing prices, continues to reach historic highs. In the second quarter of 2025, the number of people in employment grew by 2.3% compared to the previous quarter and by 2.7% compared to the same period last year, reaching figures not seen since 2007.

However, residents' intention to purchase housing has fallen for the third consecutive month, with a 9% drop in May. Although demand continues to far exceed supply, this decline suggests a possible ceiling on the prices that families are willing (or able) to pay.

The sector warns that, as long as employment continues to expand, prices will continue to rise, albeit at a gradually slower pace. More restrictive policies by financial institutions in granting mortgage loans could be a decisive factor in the future pace of the market.