The Spanish Real Estate Market in 2025 and Outlook for 2026

The market maintains steady growth in 2025, with increases in property prices and strong buyer activity, especially in urban centers and coastal regions. This trend is driven by robust demand and constrained housing supply, although the scarcity of properties presents considerable challenges for first-time buyers and those seeking affordable housing.

Historic Prices and Buyer Activity

According to recent data from Idealista and El País, the price of existing homes rose 12.8% year-on-year in the third quarter of 2025, marking the largest increase in 18 years. Despite some moderation in transactions during the summer months, market activity remains solid, highlighting the sector’s resilience amid limited supply and high prices.

Outlook for 2026

Institutions such as Singular Bank and BBVA Research project that the upward trend in prices will continue in 2026, with estimated increases ranging from 5% to 9%. Sustained demand, improvements in disposable income, and competitive interest rates will continue to support the market, although limited housing supply and high construction costs will maintain pressure on prices.

Trends by Cities and Regions

Madrid: High demand and limited supply in central areas will continue to drive price growth. Urban development projects like Operación Campamento could increase the value of certain neighborhoods.

Barcelona: Tourism pressure and limited land availability maintain rising prices, especially in high-demand districts.

Valencia: Price and rental growth is expected to moderate due to a slight slowdown in demand.

Coastal and Second-Home Areas: The Costa Brava, Costa Blanca, Costa del Sol, and Mallorca remain attractive destinations for both domestic and international buyers, with stable or slightly increasing prices.

Other Regions: Galicia and La Cerdanya show moderate growth, supported by improved infrastructure and quality of life. Andorra continues to appeal in the luxury and central property segment.

Challenges and Opportunitie

Market growth presents opportunities for both buyers and investors but also brings significant challenges. The scarcity of affordable housing and high prices make access to housing difficult for young people and middle- and low-income families. This makes strategic planning and professional advice essential when making purchasing or investment decisions.

How Coldwell Banker España Can Help

At Coldwell Banker España, we guide our clients through every step of the buying, selling, or investing process. From personalized advice to local market analysis, our team of experts helps you make informed decisions and take advantage of the opportunities the current market offers.

Want to know the value of your property or explore investment opportunities? Contact us for specialized advice tailored to your needs.