Spain’s urban land market recorded a modest year-on-year decline of 0.3% in the third quarter of 2025, with the average price standing at €167.8 per square metre, according to official data from the Ministry of Housing and Urban Agenda. This adjustment follows a sharper quarter-on-quarter decrease (-6.9%), bringing prices to their lowest level since mid-2024.

Rather than signalling a broad-based slowdown, land price trends reveal significant regional divergence. The strongest annual increases were observed in Galicia (+41.2%), the Madrid region (+34.6%) and La Rioja (+32.6%), while the steepest declines occurred in Castile and León (-18.3%), the Basque Country (-12.3%) and Andalusia (-11.4%). In absolute terms, Madrid remains the most expensive market at €415.5 per square metre, followed by the Balearic Islands (€375) and the Basque Country (€248.1), underscoring the resilience of prime and supply-constrained locations.

Large urban centres continue to display particularly strong fundamentals. In municipalities with more than 50,000 inhabitants, average land prices rose by 15.9% year-on-year, reaching €344.7 per square metre, with peak levels in the Madrid region (€850 per square metre) and the Balearics (€581.4). This trend reflects ongoing land scarcity in major cities, where residential demand and development activity remain intense.

Transaction activity further supports this positive underlying momentum. A total of 7,472 land transactions were completed during the quarter, representing a 31% increase year-on-year, alongside a sharp rise in the total surface area transferred to 9.1 million square metres (+35.8%). The total transaction value approached €1.1 billion (+16.4%), highlighting sustained interest from developers and investors, particularly in secondary and peri-urban markets where development opportunities are expanding.

Overall, the data points to a market where short-term price adjustments coexist with structurally strong demand, driven by the need to unlock new housing supply and by the strategic importance of land within the real estate value chain.

At CG Capital Europe, we view urban land as a core strategic asset underpinning long-term real estate development. With extensive experience advising on land acquisitions, development strategies and complex urban planning processes, we support investors and corporates in identifying opportunities and navigating an increasingly constrained and competitive market environment, always with a focus on sustainable value creation.

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