Madrid, Spain – Access to homeownership with a mortgage is becoming “critically” difficult in five major Spanish cities – San Sebastián, Madrid, Barcelona, Málaga, and Palma de Mallorca – according to a report released Wednesday by the Tecnocasa-Universitat Pompeu Fabra (UPF) research center. The findings come as the average mortgage amount in Spain rose 16.8% year-on-year in the second half of 2025, reaching €154,530, while the price of resale homes increased 15.34% to €3,338 per square meter.
The report, titled ‘XLII Informe sobre el mercado de la vivienda’ and ‘Accesibilidad a la compra de vivienda con hipoteca’, indicates that in these five cities, households with median incomes are unable to secure a mortgage covering the average property price. Conversely, Jaén, Palencia, Lleida, and Zamora offer the most accessible housing markets.
Researchers estimate that a household income of €28,388 annually is required to meet the financial obligations of a typical mortgage, based on a 30% debt-to-income ratio. A more conservative estimate, factoring in average household income data from the National Statistics Institute adjusted for the general Consumer Price Index, places the necessary income at €38,334 per year. This translates to a 71% accessibility rating on a scale of 100, indicating a “difficult” level of access.
Barcelona currently has the highest resale property prices, averaging €4,053 per square meter, a 10.05% increase year-on-year. Madrid follows closely with €4,101 per square meter, a more substantial increase of 19.56%. Getafe experienced the largest year-on-year price surge at 20.54%, while Talavera de la Reina (Toledo) remains the most affordable, with prices at €1,073 per square meter.
The study attributes the increasing difficulty in accessing homeownership to a combination of rising demand and limited supply. Demand has increased by 30% in 2025, while the available housing supply has decreased by 16%. This imbalance means that, on average, each property now has seven potential buyers, double the number from two years ago.
Lázaro Cubero, Director of Analysis at Grupo Tecnocasa, stated that the current market favors sellers, with negotiation between buyers and sellers at a historic low of a 6.2% reduction in asking price – a level similar to that seen in 2007. The average time to sell a property has also increased slightly, from 73 days in 2024 to 77 days in 2025, according to Tecnocasa transaction data.
Regarding mortgage risk indicators, the loan-to-value ratio stands at 70% in the second half of 2025. The ratio of monthly mortgage payments to borrower income is 32%. The report also notes that 85% of new mortgage holders have permanent employment contracts, the average mortgage term is under 28 years (compared to 35 years in 2007), and 71% of new mortgages are fixed-rate.
Tecnocasa asserts that these indicators demonstrate stability and align with the credit standards banks are currently applying to mortgage applications.
