Spain’s red-hot property market is finally beginning to cool as soaring house prices start pricing buyers out, according to the latest official figures.

Home sales fell by 2.2% in March compared to the same month last year, with a total of 61,295 transactions recorded across the country, new data from Spain’s National Statistics Institute (INE) shows.

The slowdown was driven largely by a sharp drop in sales of new-build homes, which plunged by 10.2% year-on-year.

It marks the third consecutive monthly fall in property sales in Spain after declines of 5% in January and 0.5% in February, reinforcing signs that the market is losing momentum after years of intense growth.

Experts have increasingly warned that rising prices are pushing many buyers to breaking point, particularly in popular regions and major cities where affordability has deteriorated rapidly.

In the first quarter of 2026 overall home sales were down 2.6% compared to the same period in 2025.

New-build properties have been hit hardest, with transactions dropping by 5.3%, while sales of second-hand homes slipped by a more modest 1.8%.

The figures come amid growing concerns that Spain’s housing market may be reaching its limit after years of booming demand, foreign investment and chronic housing shortages.

Several regions saw particularly steep declines in March.

Cantabria recorded the biggest drop in home sales at 15.4%, followed by the Basque Country at 11.6% and the Canary Islands at 8.9%.

However, some parts of Spain continue to buck the trend.

Castilla-La Mancha saw home sales rise by 11.5%, while Navarra and La Rioja recorded increases of 8.2% and 5.2% respectively.

All three regions are on the cheaper end of Spain’s market, suggesting buyers are flocking to more affordable zones.