News

Madrid, Lisbon, and Milan, June 28, 2025.
The real estate market in Southern Europe continues to experience strong upward pressure, both in sales and rental prices. According to the latest idealista report for June 2025, Spain is the country with the fastest price growth, while Portugal maintains the highest overall price levels, and Italy shows more moderate growth.

In terms of property sales, the average price per square meter stands at €2,898 in Portugal, €2,438 in Spain, and €1,828 in Italy. However, Spain leads in year-on-year growth with a 14% increase, compared to 8% in Portugal and only 1.5% in Italy.

By city, Madrid reaches a new record of €5,642/m² (+25% annually), closing in on Lisbon (€5,769/m²), while Barcelona records €4,920/m² (+11.1%). Milan, although with high prices (€5,104/m²), shows more modest growth (+2.4%).

In the rental market, Portugal leads with an average price of €16.7/m²/month, followed by Italy (€14.9/m²) and Spain (€14.6/m²). Still, Spain registers the highest annual increase, at 9.7%, ahead of Italy (5.5%) and Portugal (3.5%).

The cities with the highest rental prices are Barcelona (€23.9/m²), Milan (€23.7/m²), Lisbon (€22.2/m²), and Madrid (€22/m²). Rome stands out for having the largest annual increase in rents, at 12%.

In tourist markets, Palma de Mallorca reaches a new record with €4,907/m², while Valencia leads in growth with a +20.1% annual increase. In Portugal, Funchal (€3,645/m²) is the most expensive city, and Faro shows the largest rental increase (+12%).

In Italy, cities like Cagliari and Palermo post notable rent increases, though sales prices remain far from historical highs.

Southern Europe remains locked in a rising price trend, driven by strong demand in major cities and tourist destinations. Spain leads in growth, Portugal remains the most expensive, and Italy stays more stable, though rental markets are increasingly under pressure.