Property prices and sales in Spain will continue to soar in 2026, experts have predicted.
A report by the Real Estate Business School (Rebs), produced with the University of Malaga, forecasts strong growth in sales, prices, mortgages and construction permits for at least the next two years.
According to the latest edition of the Pulsímetro Inmobiliario, new-build sales are expected to rise by 16.3% in 2025 compared with this year, while second-hand sales should climb by 11.2%.
Meanwhile, mortgage lending is also predicted to expand by 9%.
By 2026, the study projects that new-build transactions will approach 169,000 units (up from 134,896 in 2024), while sales of existing homes could surpass 612,000 – a sharp increase from 505,993 just two years earlier.
Mortgages, meanwhile, are expected to edge towards 429,600 new contracts, up from 392,440 in 2024.
Prices set to rise further
Property values are also tipped to keep rising. The report forecasts that new-build homes will climb by 6.1% in 2026, taking the average price above €305,000.
For second-hand homes, the increase is expected to be 6.6% in 2025 and 5.5% in 2026, pushing the average to €204,327 – up from €184,295 in 2024.
The average mortgage size is predicted to exceed €224,000 by 2026, a level not seen since Spain’s housing bubble, as banks compete to lend and buyers stretch further to keep up with rising prices.
More building, but not enough supply
On the supply side, Rebs and the University of Malaga also anticipate growth in construction activity.
New permits and housing starts are set for double-digit rises this year, though completions will barely increase.
By 2026, the number of finished homes could finally exceed 100,000 units, but analysts warn that demand is still vastly outstripping supply.
Why homes remain unaffordable
Jose Antonio Perez Ramirez, director of Rebs, said during the report’s presentation that Spain’s lack of new housing is pushing more buyers into the second-hand market, driving prices even higher.
‘The strength of demand, far greater than supply, is keeping prices under pressure – especially for second-hand homes, where one in three transactions is closed in cash,’ he explained.
He argued that making homes more affordable will require a new model combining bank financing of public land with EU funding, to boost the supply of social and affordable housing.
He also highlighted the importance of smaller players in the market.
He said: ‘The most important focus is on the retail level: cooperatives and micro-projects spread across the country, which is where demand is really concentrated.’
