Housing Prices in Spain: Evolution and Forecasts for 2026
Last Updated on 3 November 2025 by Equipo Urbanitae
The constant rise in housing prices in Spain is increasingly present in public debate. The latest CIS barometer concludes that 37% of the population considers it the country’s main problem. For this reason, it has long been part of the political and economic agenda of the government and all political parties.
According to data from the Ministry of Housing and Urban Agenda, in the second quarter of 2025, the average price of free-market housing reached €2,093.5 per square meter, marking an increase of 10.4% compared to the same period last year and reaching levels not seen since 2008.
Current Snapshot of the Spanish Residential Market
The latest official data allow us to draw a clear picture of how the value per square meter has evolved, the differences between new and used housing, and the areas where market pressure is most evident:
Average price: The average value of free-market housing in Spain is €2,093.5/m².
New vs. used housing: Homes less than five years old have an average price of €2,440.2/m², while those older than five years are at €2,083.1/m².
Most pressured areas: Madrid and the Balearic Islands lead in prices. In Madrid, prices exceed €3,631/m², and in the Balearics, they approach €3,518/m².
Regional differences: In contrast, provinces like Ciudad Real maintain prices below €1,000/m², reflecting significant disparities in the market.
Demand and financing: Between January and June 2025, 243,257 mortgage loans were signed, 25% more than in the same period of 2024, with an average amount of €168,363, driven by contained interest rates.
Forecasts for 2026
Analysts agree that the Spanish residential market will maintain its dynamism in 2026, although with a more moderate growth rate.
BBVA Research predicts that housing prices will increase by 5.3% in 2026, after a 7.3% rise in 2025. Their analysis highlights that the combination of a very limited supply (due to the lack of ready-to-build land and high construction costs) and still-strong demand will continue to drive the market. Furthermore, interest rate stabilization and improved employment are expected to sustain activity, especially in major urban centers and coastal areas.
Caixabank Research anticipates a 6.3% increase in 2026, in line with BBVA, emphasizing that the residential sector has entered a new expansion phase. It points out that “this growth, higher than expected for household disposable income, will further strain affordability indicators, especially in high-demand areas.” This underscores the need to accelerate the construction of affordable housing.
Bankinter has revised its forecasts upward, projecting a 6% increase in 2026 compared to the 4% previously estimated. This adjustment reflects a more resilient market than expected, driven by solvent demand (young buyers with purchase aid and international buyers) and a supply that cannot absorb demand pressure. Bankinter expects growth to slow down in 2027, with an increase around 5%.
Finally, Singular Bank estimates a cumulative revaluation of 9% between 2025 and 2026, driven by improved consumer confidence, a gradual decline in inflation, and the consolidation of residential tourism. Its analysis highlights that housing will remain a safe-haven asset against economic uncertainty, especially in areas such as the Mediterranean coast, the islands, and major urban hubs.
Towards More Balanced Growth
The scarcity of available housing continues to be one of the main factors driving price increases in Spain. This supply limitation, combined with sustained demand from both domestic and foreign buyers, keeps pressure on the housing market. Moreover, improved purchasing power and favorable credit conditions contribute to constant sector dynamism.
Despite the overall upward trend, significant disparities persist between autonomous communities, with major cities, the Mediterranean coast, and the islands concentrating most of the demand and price increases. In short, although prices are expected to continue rising in 2026, estimates point to moderation compared to the surge of previous years. Overall, the market maintains its upward trend, but with signs of stabilization and more balanced growth on the near-term horizon.
