Housing Sales in Spain 2025 – and What Awaits Us in 2026!

2025 was yet another remarkable year for the Spanish housing market. After several years of rising demand, growing foreign interest, and a gradually improving economy, prices continued their upward surge. The market proved both robust and complex: on one hand, prices rose in large parts of the country at a pace that outstripped both wage and inflation growth, while transaction levels remained surprisingly high. On the other hand, a lack of new construction and political changes challenged the dynamics in several key regions.

Prices in 2025 were characterized by broad increases. Major national price indices generally reported double-digit growth rates throughout the year, and in the most attractive areas—such as Madrid, Barcelona, and popular coastal zones like Costa del Sol, Costa Blanca, and Mallorca—the rises were even more pronounced. These increases were driven not only by national economic progress but also by a persistent imbalance between a strong buyer base and a supply that could not keep up. New construction continued to show signs of bottlenecks: slow permit processes, limited building land, and rising costs made it difficult to increase the housing supply at the same pace as demand. This meant that even moderate improvements in financing conditions or buyers’ purchasing power quickly affected prices.

At the same time, transaction activity developed surprisingly strongly. Official statistics show that the number of registered housing transactions grew at a healthy pace in several months of 2025, even in a market where many expected high prices and interest rate uncertainty to dampen activity. Demand came both from Spanish households seeking larger or newer homes and from foreigners who continued to view Spain as an attractive combination of climate, quality of life, and investment potential.

One of the year’s most significant political events in the housing sector was the abolition of the “golden visa” program in April 2025. For over a decade, the scheme had allowed non-EU foreigners to obtain residence by investing in Spanish property. With the legal change, this option disappeared for new applicants. While the decision did not trigger any dramatic correction, it shifted investor flows in several major cities and coastal areas. Demand from this specific group fell, but the market remained strong because broader national and European interest in Spanish property was still substantial.

The central bank and market regulators closely monitored developments throughout 2025. They noted that the credit quality of Spanish households was generally solid but warned about the rapid pace of price increases, the geographic concentration in certain areas, and the risk that the market could become vulnerable to new interest rate hikes. There was no classic housing bubble, but rather a market moving at a high pace, where even minor economic adjustments could have noticeable effects.

Looking ahead to 2026, three main scenarios are emerging. The most likely scenario is continued price growth, but at a more moderate pace than in 2025. Several economic institutions expect that a stabilized interest rate environment, combined with persistent supply shortages, will keep the market in positive territory. In a more optimistic scenario, prices could rise rapidly again if the economy strengthens further, tourism hits new records, and foreign buyers return in even greater numbers. Conversely, a more subdued or outright negative scenario is also possible. If interest rates rise, incomes fail to keep pace, or regulations tighten further, the market could move toward stagnation or a mild correction in selected areas.

For buyers, 2026 will likely be characterized by continued competition, particularly in the most sought-after areas. Sellers remain in a strong position, but the pace of price increases may moderate. For investors, the focus is increasingly shifting toward long-term rentals and stable returns rather than speculative capital gains.

Overall, the Spanish housing market enters 2026 with strong momentum but also several structural challenges. The supply of new homes remains low, demand is consistently high, and even moderate fluctuations in financial conditions or political decisions can have an impact. This makes 2026 a year in which the balance between economic development, housing policy, and international demand will be decisive for the market’s direction.

At homes-abroad.com, we continually keep a close eye on the local markets. Only in this way can we provide our clients with the best possible advice when buying or selling a home.