Anyone hoping for a drop in Spanish house prices before buying is likely to be disappointed, according to leading property experts.

Speaking to Idealista, they say prices are expected to keep rising through 2026, albeit at a slower pace than in recent years.

The Spanish housing market continues to be driven by strong demand and a chronic shortage of available homes, particularly affordable new-build properties, meaning there is little sign of a widespread fall in prices.

Average property prices have increased by 50% in just five years, rising from €1,829 per square metre in April 2022 to €2,748 per square metre in April 2026, a year-on-year increase of 16.9%.

While experts believe the pace of growth will moderate, they do not expect prices to fall significantly.

Miguel Angel Gomez Huecas, president of the Spanish Federation of Real Estate Associations (FADEI), said the market could become more stable but warned that a general price correction remains unlikely.

‘There may be adjustments for overpriced homes or in areas with weaker demand, but as long as more affordable housing and new-build homes do not come onto the market, prices will remain under pressure,’ he said.

Alvaro Basanta, spokesman for the Spanish Guaranteed Rental Society (SEAG), agreed that price growth is likely to slow rather than reverse, particularly in major cities and metropolitan areas where housing supply remains limited.

Emiliano Bermudez, deputy general manager of donpiso, also expects demand to continue supporting prices, although he believes some markets could begin to stabilise or see modest corrections during 2027 where affordability has reached its limits.

Taken purely from a pricing perspective, experts say buying now could prove cheaper than waiting until next year if current trends continue.

Mortgage outlook

Mortgage costs are another important consideration.

Although the Euribor has risen from 2.143% in April 2025 to 2.747% in April 2026, borrowing remains considerably cheaper than during much of 2023 and early 2024, when the benchmark rate regularly exceeded 3% and even 4%.

Some analysts therefore believe current mortgage conditions remain relatively favourable, particularly given the uncertainty surrounding the global economy.

Several banks have already begun tightening mortgage conditions in response to the recent rise in the Euribor, either by increasing borrowing costs or making lending criteria more restrictive.

However, Gomez Huecas warned that lower mortgage rates do not necessarily make buying more affordable.

‘If mortgages become cheaper, demand usually increases, which can push house prices even higher,’ he said.

SEAG also expects buyers to become more cautious, comparing mortgage offers more carefully and increasingly favouring fixed or stable monthly repayments.

Is now the best time to buy?

Despite the uncertain international outlook, there is broad agreement across the property sector that buyers should base their decision primarily on their own financial circumstances, rather than trying to predict short-term movements in the market.

Experts say that if a buyer finds the right property, can comfortably afford the repayments and plans to stay for the long term, delaying the purchase purely in the hope of lower prices is unlikely to pay off.

They also recommend considering factors beyond the purchase price, including the property’s condition, future maintenance costs, energy efficiency, resale potential, job security and personal savings.

While Spain’s new 2026-2030 State Housing Plan aims to expand public housing and encourage more residential renovation, experts say it is likely to take years before those policies have a noticeable impact on prices.

In the meantime, continued foreign demand, population growth and an increasing number of single-person households are expected to keep pressure on the housing market.