Spain’s real estate market is set for another surge in both house and rental prices through 2026, according to new forecasts from property portal Pisos.com. The report projects that house prices will jump by 13.7% in 2025 and a further 7.8% in 2026, while rents are expected to climb 10.3% in 2025 and 6.8% in 2026.
Historic Highs—and Crushing Lows—For Home Seekers
Demand for housing remains high, but supply is dropping fast—a trend that is driving prices to historic highs. Currently, the average cost of a home sits at an unprecedented 2,500 euros per square meter, which is 26% above the 2007 peak. Over the last two and a half years, the supply of available homes has plummeted by 60%.
Experts warn that the situation is particularly “dramatic” for young people and vulnerable families, as home ownership and renting are becoming less and less accessible. Even so, just 20% of Spanish households are renters compared to the 30% eurozone average.
Why Is Housing Supply Shrinking?
Two big factors are behind the supply squeeze: property owners are increasingly wary of renting due to fears of government intervention and price caps, and more apartments are being shifted to the tourist (10% of the market) or temporary rental markets (20%).
With supply unlikely to bounce back in the short term, frustrations among would-be homebuyers and tenants are expected to continue well into 2026.
Sales Surge Despite Soaring Prices
Despite these stratospheric prices, home sales are booming. Spain is forecast to close 2025 with 709,569 sales—a 10.8% jump from the previous year and a number not seen since 2007. In 2026, sales could reach an estimated 744,096 transactions, up another 4.9%.
Several forces are powering this growth: low interest rates, increased demand, and households rushing to buy before prices rise further. Young buyers, in particular, are often turning to family support and loans to get a foot on the property ladder.
Mortgages and New Builds: Still Lagging Behind Demand
Mortgage activity is surging as well, with 496,698 mortgages expected in 2025 (up 16.7%) and 528,308 in 2026 (+6.4%). However, new building permits aren’t keeping pace with household formation. While permits are set to rise 8% in 2025 (to 137,939) and 8.2% in 2026 (to 149,250), this lags far behind the 250,000 new households created annually.
The Bottom Line
Spain’s real estate market is on a tear, but the imbalance between limited supply and robust demand is pushing both house prices and rents to unprecedented levels. For many Spaniards, especially the young and vulnerable, the dream of stable housing remains out of reach amid government uncertainty and a shifting rental landscape. For now, the country’s housing market looks set to remain competitive—and costly—through 2026 and beyond.
For more updates on Spain’s real estate market and tips for buyers and renters, follow our latest news on a’esgium.
