Catalonia’s Housing Market Surpasses 2007 Peak Amidst Supply Shortage

Barcelona, Spain – Catalonia’s housing market experienced a landmark year in 2025, exceeding the previous peak in home sales recorded in 2007. Despite a broader slowdown in the Spanish housing market, Catalonia saw 112,000 home sales, surpassing the 111,000 recorded in 2007, according to data from the National Statistics Institute (INE).

Record Sales Driven by Demand and Financing

December 2025 proved particularly strong, with 8,181 sales – a 9.9% increase compared to December 2024. This surge in activity is attributed to more favorable financing conditions following recent interest rate drops and a robust labor market. Although, this demand is occurring against a backdrop of limited housing supply, creating upward pressure on prices.

Protected Housing Lags Behind

While overall sales are booming, the proportion of protected housing within the market continues to decline. In 2025, only 6.8% of the 714,237 homes purchased across Spain were protected housing (48,371 units), compared to 93.2% (665,866 units) that were not. This trend represents a decrease from 2018, when protected homes accounted for 9.7% of total sales (49,968 homes).

Novel Construction Gains Traction

Sales of newly built homes are also on the rise, increasing by 16.1% in 2025 to 21,871 transactions. This growth outpaces the 10.3% increase in resale home sales (558,327 transactions). However, new construction volumes remain below historical peaks seen during the housing bubble.

National Context: Spain Lags Catalonia

The positive trend in Catalonia contrasts with the broader Spanish housing market. Nationally, 714,237 transactions were recorded in 2025, significantly lower than the 775,300 registered in 2007. This suggests that Catalonia’s housing market has recovered more quickly than the rest of Spain.

Price Increases and Mortgage Growth

The limited supply is driving up prices. Housing prices in Catalonia increased by 13.1% year-on-year by the end of 2025, reaching an average of €2,230 per square meter. Regions like Madrid (€3,902.3/m²) and the Balearic Islands (€3,809.9/m²) are experiencing even higher prices.

Mortgage activity is also increasing, with a nearly 18% rise in the number of mortgages issued for home purchases in 2025, reaching over half a million operations. The total capital borrowed through mortgages increased by 32.6% compared to 2024, reaching the highest level since 2010.

Future Outlook

Experts predict that price growth will likely moderate in the coming months due to the limited housing supply. Francisco Iñareta, a spokesperson for the Idealista real estate portal, suggests that the first stages of 2026 will likely observe continued increases in transactions coupled with more subdued price increases.