Mortgage signings in Extremadura plummeted by 19.3% between June and July, compared to a 3% drop in the national average. Year-on-year, the decline was 9.1%, far exceeding the 0.8% in Spain.
The constitution of mortgages on housing in Extremadura fell by 19.3% between June and July of this year, according to data published this Monday by the Institute of Statistics of Extremadura (Ieex). In the whole of Spain, the monthly decline was 3%, meaning the drop in Extremadura is 6.4 times that recorded nationally.
In year-on-year terms, the region also fares worse: the mortgages constituted in July totalled 935, which is 9.1% less than in the same month of 2025, compared to a drop of 0.8% in Spain. The information, reported by hoy.es, notes that the Extremadura market is experiencing a downward trend that has intensified since June.
The average amount of mortgages on all properties registered in the property registers rose by 24.8% year-on-year and stands at €148,273, compared to the €217,597 national average. In the specific case of mortgages on housing, the average amount increased by 7.9% annually, reaching €100,449, well below the €180,785 national figure.
The capital lent to establish mortgages on homes in Extremadura reached €75.54 million in July, which is 4.47% more than a year ago, but 28.3% less than in June.
The partner and director of the real estate agency IHS, José Luis Medina, attributes the monthly decline to the small size of the Extremadura market and the depletion of available supply, rather than seasonal factors. "The data has dropped significantly, but we are a very small market and when there is movement in the delivery of significant promotions, the following month the data falls," he explains to hoy.es.
"In a single promotion, 40 or 50 homes can be sold, and the following month the mortgage signing figures drop, due to pure extinction of supply"
Medina points out that the sector has entered a phase of stabilization after the "brutal" growth of 2025. "In the accumulated year, Extremadura is still at +8.8% compared to the first half of 2025," he emphasizes. "After such a huge increase last year, there has been a tendency towards normalization because many new promotions were delivered in 2025," he adds.
The specialist insists that activity has not stopped, but has moderated: "Right now properties are still being sold, but not at those growth rates. The sharp drop in the data for a specific month is due to the small size of the market in the region and the natural slowdown of the sector itself."
Mortgages on homes in July were recorded at 752 in Extremadura, 3.2% less than in the same month of 2025, a decline similar to the 3.5% national average. The next monthly data from the Ieex will reveal whether the July drop is a one-off event or if the trend continues in the following months.
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