SPAIN’S housing boom shows no sign of slowing down after research from a leading real-estate agency revealed that property prices nationwide are on course to rise by over 7% across 2025. The growth is even stronger in major cities such as Madrid or Barcelona, with average property prices in the most desirable urban areas expected to exceed €3,900 per square metre this year. In a sign of increased demand, Donpiso forecasts over 800,000 property transactions in 2025 – representing a near 25% rise compared to the 641,919 deals recorded last year. READ MORE: Bank of Spain warns of a housing bubble with properties overvalued by up to 8.5%The surge in property prices is strongest in major cities, such as Madrid. Earlier this year, the Bank of Spain warned that steep rises in property prices are being pumped up by overvaluation – but laid the blame of price spikes at the feet of the country’s housing shortage.