A principle of harmonic analyticity underlying the quaternionic (quaternion-Kaehler) geometry is found, and the differential constraints which define this geometry are solved. To this end the original 4n-dimensional quaternionic manifold is extended to a biharmonic space. The latter includes additional harmonic coordinates associated with both the tangent local Sp(1) group and an extra rigid SU(2) group rotating the complex structures. An one-to-one correspondence is established between the quaternionic spaces and off-shell N=2 supersymmetric sigma-models coupled to N=2 supergravity. Coordinates of the analytic subspace are identified with superfields describing N=2 matter hypermultiplets and a compensating hypermultiplet of N=2 supergravity. As an illustration the potentials for the symmetric quaternionic spaces are presented. (K.A.) 22 refs.