SPAIN’S REAL ESTATE MARKET 2026: PRICES RISE AGAINST ALL ODDS

Spain’s property market is back in the spotlight: despite high mortgage rates, political uncertainty, and global risks, prices continue to climb steadily.

— Price growth: +5–7% in 2026

— New builds are ~40% more expensive than resale properties

— Record transactions: highest levels in nearly 20 years

— Severe housing shortage nationwide

— Spain’s economy outperforming the EU

— Strong demand from foreign buyers and investors

— Tourism continues to hit record highs

— Limited construction and bureaucratic delays

— Rental regulations are reducing supply

— Political uncertainty is slowing reforms

— Developers can’t keep up with demand

Even with rising interest rates, the market is NOT falling — it’s becoming more expensive and less affordable.

Spain is entering a phase of “expensive stability” — prices are rising not due to speculation, but due to a structural housing shortage.

— Growth will continue, but at a slower pace

— Housing affordability will worsen

— Investors will remain key players