On Spain’s Costa Blanca, the property boom is continuing with prices up by 15% a year.

Tinsa’s figures show that house prices in Alicante rose 15.3% between the third quarter of last year and the third quarter this year.

In Alicante City, prices stood at €1,907 per square metres- up by 14% on a year earlier and a 4% hike on the previous quarter.

Tinsa’s Cristina Arias said that the levels of demand were close to those of post-bubble heights. Prices are also rising because of a shortage of housing supply, particularly in second-hand property.

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Madrid, for example, has seen a rise of close to 20%.

Castilla y Leon and Extremadura are the places with the lowest increases, with an increase of 0.5% to 4%.

According to Bank of Spain data, interest rate reductions have helped boost the mortgage market. The percentage of loans that cover more than 80% of an asset’s value has increased, from 11% to 11,7%, from the first to the second quarter.

That is still far behind the ‘boom’ period figure of 16% reached between 2004 and 2007.

According to the latest available figures from the National Institute of Statistics, the average mortgage in Spain in the second quarter of 2025 stood at €154,358.

Each month, the mortgage repayment is an average outlay of €774, which has fallen due to reduced interest rates

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