Home sales in Spain fell 11.1 percent year-on-year in July to 65,395 completed transactions, marking a tenth consecutive month of decline for the national housing market. According to official figures released by the country's Notarial Statistics, the sharp contraction extends a sustained cooling trend that first became evident to Spanish notaries in mid-2025.
Despite the steep drop in transaction volumes, property prices continued to rise across Spain, albeit at a slightly slower pace than in previous months. The average price per square metre reached 2,112 euros in July, representing a 7.7 percent increase compared to the same period a year earlier.
The price momentum varied significantly between different types of housing. Apartment prices jumped 12.5 percent year-on-year to average 2,547 euros per square metre. By contrast, single-family homes experienced a much milder price growth of 2.3 percent, averaging 1,495 euros per square metre across the country.
Notary transaction records
The latest figures from the General Council of Notaries offer one of the most immediate indicators of real estate activity in Spain. Notarial statistics record property deeds at the exact moment they are signed in notary offices, providing real-time data on market trends. By contrast, official land registry records reflect transactions closed two to three months earlier and omit all cash purchases that do not require mortgage financing.
In Spain, public notaries play a vital statutory role in legalising real estate contracts, authenticating deeds, and ensuring statutory compliance for both buyers and lenders. Because every property transaction certified by a notary is logged centrally, the Notarial Statistics function as a primary barometer for economic analysts evaluating Spanish residential activity and broader macroeconomic health.
Mortgage lending and interest rates
Mortgage financing for residential purchases also contracted during the month. The number of new housing mortgages approved by Spanish institutions fell 4.9 percent year-on-year to 36,685 operations. The average loan value dipped slightly by 0.2 percent to 183,644 euros. Mortgages funded 56.1 percent of all home purchases in July, with the average loan covering 71.6 percent of the total property acquisition price.
Industry executives have warned that high borrowing costs are increasingly weighing on buyer demand. Gonzalo Gortázar, chief executive officer of CaixaBank, stated earlier this week that the mortgage market is pointing toward a clear deceleration. Gortázar noted that an affordability problem is approaching in Spain, driven in part by higher prevailing short-term and long-term interest rates.
The banking chief explained that while many prospective buyers wish to purchase a home, many are unfortunately unable to meet current market prices. He added that looking ahead to next year, home loan growth will likely slow down, though overall lending activity is expected to remain positive. CaixaBank, headquartered in Valencia, is Spain's largest domestic retail bank by assets and a dominant lender in the national mortgage sector.
Monetary policy decisions by the European Central Bank have significantly increased borrowing costs across the eurozone over recent years, placing upward pressure on variable and fixed-rate mortgages in Spain. Higher interest rates combined with persistent house price inflation have stretched household budgets, particularly for first-time buyers seeking residential mortgages.
Regional housing market performance
The downturn in sales was widespread, affecting 16 of Spain's 17 autonomous communities in July. Only Extremadura managed to record a positive annual performance, where home purchases rose by a modest 0.9 percent. Extremadura, an inland region in south-western Spain bordering Portugal, remains one of the country's most affordable housing markets.
In contrast, several key regional markets suffered double-digit contractions. The steepest annual decline occurred in the Basque Country, where home sales plummeted 20.2 percent, closely followed by La Rioja with a 20.1 percent drop. The eastern coastal region of the Valencian Community recorded a 19.1 percent decrease, while sales in the northern region of Asturias fell 16.9 percent.
The Balearic Islands, a major Mediterranean archipelago known for international tourism and prime real estate, saw sales fall by 14.5 percent year-on-year. Spain's autonomous communities hold extensive powers over regional economic planning and housing policy, leading to distinct market dynamics across the country's northern industrial hubs, coastal tourist regions, and agricultural interior.
