Housing is the main concern of Spanish society in 2025, according to the CIS Barometer. The rising purchase and rental prices, mainly in the last two years, make it difficult not only to buy property but also to rent for the population residing in Spain.

MWCC has sought to shed light on this problem by producing various publications, such as the report on the Evolution of the Real Estate Market in Spain [drive.google.com] and its monthly analysis accompanied by a table with 50 market indicators. This report has been prepared by DS Ranking in collaboration with MWCC.

However, given the situation and evolution of the market and the differences not only at the regional level but also between municipalities, they have considered it necessary to have an indicator that would allow for a more detailed territorial assessment.

The Housing Sensibility and Risk Index (ISYRAV) [drive.google.com] is compiled taking into account the circumstances of the housing market and the socioeconomic conditions of the population in each territorial area to assess whether the situation is sensible or, on the contrary, at risk. According to the methodology, values below 30% indicate a market that is operating sensibly, while higher values indicate a market that is at risk, with the risk increasing as the value rises.

Prudence prevails despite the increase in financial risk, as shown by the Prudence and Risk Index in Home Purchasing (ISYRAV), which stands at 25.2 points. The indicator, despite having risen 10% compared to last year, remains far from signs of financial risk at the national level.

Prices continue to exceed previous records, driven by high demand and supply that fails to meet market needs. However, the latest data for October shows that demand fell by 12.8% compared to September and, more notably, fell by 6.7% annually, when in the last 17 months only April this year had seen a decrease, and that was by 2.8%.

Prices rose sharply in the third quarter, up 12.8% according to INE data, 15.6% according to Idealista, and 17% according to Fotocasa. The appraisal price stands at €2,094/m², while real estate portals are already reporting market prices of up to €2,789/m².

The dynamism in financing and transactions shows frenetic activity in the closing of deals, with the number of home sales reaching 67,789 units, 13.9% more than the previous year. This is reflected in the number of mortgages taken out, which grew by 13.2% compared to the previous month, although only 1.3% compared to October 2024. The amount has also risen by 10.2% month-on-month and 12.4% year-on-year, with a clear preference for fixed rates (72.3%) to ensure the financial stability of households. The duration of mortgages in the third quarter is 25.3 years with an average amount of €167,828, 5.9% more than the previous quarter and 13.1% more than a year ago.

In terms of households and affordability, although net household income has reached an all-time high of €36,996, affordability is under pressure due to skyrocketing prices. The maximum theoretical effort stands at 34.6%, according to the Bank of Spain, within the range of 30% to 35% prior to risk, while the mortgage loan default rate remains low at 2.1%.

Within the construction sector, future supply remains a challenge for the sector. Housing permits have grown by 11.3% annually, totaling 13,280 units in the last 12 months recorded, although they remain insufficient in the face of growing demand. Meanwhile, the stock of new housing is estimated at 447,691 units, representing a slight increase of 1.7% over the previous year.

About the report:

This ranking and panel of indicators have been compiled and published by DS Ranking and MWCC, using consolidated data from official sources such as the INE, the Bank of Spain, the Association of Registrars, and the Ministry of Transport, as well as real estate portals such as Idealista and Fotocasa.