Spanish Housing Prices to Keep Rising: A 7% Increase Expected in 2026
Spanish housing prices in 2026 are expected to continue rising, with a projected growth of 7%, according to recent market analyses.
The residential market remains strong, driven by job creation, rising wages, and renewed interest from both domestic and international buyers — particularly in the Costa Blanca and Costa Cálida regions.
Despite the increase in construction, the available housing supply remains too limited to meet demand.
This gap between supply and housing needs explains why prices are forecast to rise again over the coming months.
Housing demand remains strong through 2025 and 2026
Several factors continue to sustain the dynamism of the Spanish housing market:
- Steady job creation and higher average income levels
- Stable interest rates at favorable levels
- A growing number of new households, both national and foreign
- Rising demand for second homes along the Mediterranean coast
The combination of these elements ensures that Spanish housing prices in 2026 will maintain an upward trajectory, reinforcing the market’s resilience compared to other European economies.
Construction grows, but supply remains limited
Construction activity has increased in recent years, yet the pace still falls short of meeting accumulated demand.
Between 2021 and 2025, more than 625,000 new households will have been created, but only 45% will have access to completed homes.
This ongoing structural imbalance will continue to push Spanish housing prices in 2026 higher, generating opportunities for both homebuyers and investors.
Challenges limiting market growth
The housing sector faces several challenges that continue to affect supply and development pace:
- Limited availability of developable land
- Shortage of qualified labor in construction
- Rising construction material costs
- Reduced access to bank financing for developers
- Growing number of tourist rentals reducing long-term housing supply
- Regulatory uncertainty in rental and urban planning policies
Despite these challenges, the Spanish real estate market remains highly attractive for its long-term stability and profitability.
A key moment to invest in property
With strong demand, limited supply, and forecasts of rising Spanish housing prices in 2026, the current market presents a clear window of opportunity.
Buying now means getting ahead of future price increases and securing a position in one of Europe’s most resilient property markets.
At Esentya Estate, we help international buyers invest safely in the Costa Blanca and Costa Cálida, offering professional guidance and multilingual support throughout the entire process.
Source: Idealista, BBVA Research
