According to a recent study by Solvia, a leading real estate services provider, housing prices in Spain are expected to increase by 6–9% in the first half of 2026.
Key trends highlighted in the report include:
- Growth in the volume of home sales transactions;
- Stable or rising rental prices;
- Constraints on new housing construction;
- A persistent imbalance between supply and demand throughout most of the year.
Home Sales Transactions and Strong Demand
The volume of home sales transactions, which according to the National Statistics Institute (INE) grew by 11.5% in 2025 to 714,237 units, will continue to be influenced by several chronic market factors.
These factors include:
- Ongoing supply shortages;
- A sustained imbalance between limited supply and consistently high demand;
- Rising construction costs;
- Access to mortgage financing;
- Overall economic growth.
As a result, home sales transactions are projected to increase by 3–5% year-on-year in 2026. However, market pressures will continue to limit deal closures and slow transaction growth despite strong buyer interest. Competition will intensify particularly for high-liquidity properties—those with convenient locations, good condition, or competitive pricing.
Limited New Construction and Rental Market Trends
New housing construction is expected to remain constrained, with a potential 10–12% increase in building permits by the end of 2026. Nevertheless, this growth will not be sufficient to meet demand, a trend that is anticipated to persist throughout the year.
Rental prices, after seasonal adjustment, are expected to stabilize or increase, supported by the ongoing shortage of available rental properties. Price pressures will be especially pronounced in major cities and coastal regions.
Market Pressure in Madrid and Barcelona
The study highlights a general rise in housing prices in Madrid and Barcelona, with the most significant increases occurring in central districts. Even traditionally more affordable neighborhoods are experiencing steady price growth, intensifying territorial pressure on the market. In both cities, every district has reported an increase in price per square meter compared to the previous quarter.
The highest prices per square meter are recorded in the following districts:
- Salamanca – €7,141/m²;
- Chamberí – €6,676/m²;
- Chamartín – €6,098/m²;
- Sarrià-Sant Gervasi – €5,409/m²;
- Les Corts – €4,862/m²;
- L’Eixample – €4,700/m².
Housing Renovation and Market Dynamics
Housing renovation is becoming an increasingly important factor, accounting for approximately 55% of construction licenses since 2019. However, renovation activity alone is insufficient to correct the existing supply-demand imbalance.
The Spanish real estate market remains dynamic, attracting investment and maintaining a stable supply supported by strong macroeconomic fundamentals. Nonetheless, challenges that characterized 2025 are expected to persist into 2026, requiring ongoing collaboration among market participants to sustain momentum and ensure responsiveness across all segments.