Should I buy a property in Spain now before it gets too expensive?

The number of people buying homes in Spain currently is skyrocketing. In fact, the country's just had the best month of May since 2007 in terms of property purchases, with 40 percent percent more homes sold than for the same month last year.

Not exactly news one would expect given Spain's widely reported housing crisis. So what does this mean for foreigners - whether resident or non-resident - who have been considering buying a property in Spain? Should you rush or should you wait?

Of course, committing to buying a property depends on your individual circumstances and your finances, but the general advice from market analysts is that if you want to buy a home, you should do it sooner rather than later.

In a nutshell, banks' mortgage conditions are currently good and the data points to continuous house property price and rent increases throughout 2025 and beyond.

READ MORE: Why 2025 looks set to be a good year to take out a mortgage in Spain

Take the price evolution graph of Spain's main property search engine Idealista, which shows that the average price per square metre in June 2025 was €2,438. So a 100sqm flat in Spain costs €243,000 on average.

A month earlier, in May 2025, it was 2 percent cheaper, meaning that a home is around €4,860 more expensive now.

A year ago in June 2024, it was 14 percent cheaper, an incredible €34,000 less than it is now.

In this context, it's no surprise that many people in Spain wants to get in there quick before prices increase too much.

The latest data shows that Spain recorded the third-highest rise in housing prices in the entire Eurozone in the first quarter of 2025, with an increase of 12.3 percent, only surpassed by Portugal (+16.3 percent) and Croatia (+13.1 percent).

Rents are climbing at a similar rate, higher still in the popular spots and main cities, meaning that people who are on the fence about buying a Spanish property are considering more than ever whether to take the leap and buy a home.

In this context, it's no surprise that fear is driving many Spaniards to buy. Just as inflation influences what and how much consumers buy at the supermarket, expectations for the housing market spur people to purchase property because they anticipate it will only get worse.

But there are other factors at play too. "There are several factors that explain the current strength of housing demand, including growth in gross disposable income, strong foreign demand, positive migration flows, the favourable financial situation of households, and lower interest rates," Judit Montoriol, chief economist at CaixaBank Research, told Business Insider.

Why Spain's current mortgage conditions mean now is a good time to buy

Firstly, the situation has changed in recent months thanks to a decline in the Euribor, which is returning to levels not seen since autumn of 2022.

This means much better mortgage interest rates are available and better conditions too. Spanish banks now offer a TIN (Nominal Interest Rate) under 2.5 percent and financing up to 90 percent.

With the Euribor hovering around 2 percent, the mortgage market is seen as much more attractive now and promises to become even more so in the coming months.

Euribor is the interest rate most often used to work out mortgage payments in Spain and to calculate both variable and fixed rates.

READ ALSO: How much you need to earn to rent or buy a studio in Spain's main cities

Why future property price rises should spur people to buy now in Spain

Experts believe that house prices will continue to grow at a steady rate throughout 2025. Caixabank forecasts the rise will be 7.2 percent, Bankinter believes it will be 5 percent, American credit rating agency S&P puts it at 4.7 percent.

One way or another, the average property in Spain is likely to cost between €10,000 and €20,000 extra (if not more) in 2026 than in 2025.

This is mainly due to the increase in demand for housing, limited supply and an insufficient amount of new construction, which will keep prices high.

And although there are signs of a property bubble developing in some Spanish cities, there isn't the same set of circumstances which precipitated prices to come crashing down as in the case of the 2008 financial crisis.

READ ALSO: Is there a property bubble in Spain and will it burst in 2025?

Conclusion

The general advice from market analysts that any savings you’ll make from a better mortgage rate could be outweighed by increases in property prices. This means waiting could cost you more if you’re planning on holding out for better mortgages.

As rental prices are also continuing to rise, it might be worth spending the money on going towards a mortgage instead of increased rents anyways.

As with everything though, it’s important though to think about your situation and what is best for you. It will also make a difference depending on where in the country you want to buy.

If you're buying in a big popular city, where prices have increased the most, you may want to act sooner, but if you're buying in rural countryside it may not matter so much as prices may not rise as fast.