The price of housing in Spain remains one of the main areas of economic interest in 2026. After several years of sustained increases, many investors and buyers are asking the same question: will the market continue to grow or are we close to stabilisation?
In this analysis, we review the recent evolution of housing prices, the factors driving the market and the forecasts for 2026 according to leading experts. We also analyse which areas have the greatest potential and what this means for real estate investment.
Overview of housing prices in Spain in 2025
To understand where the real estate market is heading, it is essential to analyse the current situation of housing prices in Spain and their main indicators.
The latest official data allow us to draw a clear picture of how the value per square metre has evolved, the differences between new-build and existing housing, and the areas where market pressure is most evident:
- Average price: 2,093.5 €/m² (+10.4% year-on-year).
- New-build vs. existing housing:
- New-build: 2,440.2 €/m²
- Existing housing: 2,083.1 €/m²
- Most expensive areas: Madrid and the Balearic Islands exceed 3,500 €/m².
- Most affordable areas: By contrast, provinces such as Ciudad Real maintain prices below 1,000 €/m².
- Mortgages signed: +25% year-on-year, with more favourable rates.
These figures reflect a clearly tight market, where demand continues to exceed supply, especially in major cities and coastal areas. This imbalance is one of the main drivers of price growth.
Housing price forecasts in Spain for 2026
The forecasts coincide on one key idea: housing prices will continue to rise in 2026, although at a more moderate pace than in previous years.
BBVA Research expects housing prices to increase by 5.3% in 2026, after a 7.3% rise in 2025. Its analysis highlights that the combination of very limited supply, due to the shortage of final land and high construction costs, and still-strong demand will continue to drive the market. In addition, the stabilisation of interest rates and the improvement in employment are expected to continue supporting activity, especially in major urban centres and coastal areas.
For its part, CaixaBank Research anticipates growth of 6.3% in 2026, in line with BBVA, stressing that the residential sector has entered a new expansionary phase. According to its analysis, “this growth, higher than that expected for disposable household income, will place even more pressure on affordability indicators, especially in the areas of highest demand”. This, it concludes, reinforces the need to accelerate the construction of affordable housing.
In the case of Bankinter, the bank has revised its forecasts upwards, projecting an increase of 6% in 2026 compared with the 4% previously estimated. This correction reflects a more resilient market than expected, driven by solvent demand — young people with purchase support and international buyers — and supply that is unable to absorb demand pressure. Bankinter expects the pace of growth to start slowing in 2027, when the increase would stand at around 5%.
Finally, Singular Bank estimates a cumulative revaluation of 9% between 2025 and 2026, driven by improved consumer confidence, the gradual decline in inflation and the consolidation of residential tourism. Its analysis stresses that housing will continue to act as a safe-haven asset in the face of economic uncertainty, especially in areas such as the Mediterranean coast, the islands and the main urban hubs.
| Source | 2026 forecast |
|---|---|
| BBVA Research | +5.3% |
| CaixaBank Research | +6.3% |
| Bankinter | +6% |
| Singular Bank | +9% cumulative 2025-2026 |
Overall, experts place growth within a range of 5% to 6%, consolidating a more stable and predictable expansionary phase.
Will housing prices fall in Spain in 2026?
In the short term, a fall in housing prices in Spain is not expected. Although the pace of growth will moderate, the main indicators point to sustained increases due to:
- Lack of new housing supply.
- High demand in urban areas.
- Improved employment and access to credit.
Only a sharp change in interest rates or in the economic context could alter this trend.
Where housing prices are expected to rise the most
The largest price increases will remain concentrated in:
- Major cities such as Madrid and Barcelona
- Coastal areas with high international demand
- Islands, including the Balearic and Canary Islands
These locations combine land scarcity, economic attractiveness and demand pressure, making them key focal points for real estate investment.
What does this mean for real estate investors?
The Spanish real estate market continues to show an upward trend, driven by structural factors such as supply scarcity and solid demand.
For investors, this context presents a clear opportunity: participating in a market that continues growing, but with signs of stabilisation that allow for more rational and strategic decisions.
In this scenario, the key will be to select locations carefully, diversify and invest in projects with solid fundamentals.
Frequently asked questions
Will housing prices in Spain continue to rise in 2026?
Yes, forecasts point to moderate increases of between 5% and 6%.
Is it a good time to invest in housing?
It depends on the profile, but the current context remains favourable due to the shortage of supply.
Where is it most profitable to invest in housing?
Major cities, coastal areas and islands offer the greatest revaluation potential.
