Spanish home prices are rising at their fastest pace in years, while the number of sales is uneven from month to month. Supply is short, mortgage rates are moderate, and foreign buyers, non-residents especially, are buying less than a year ago. This guide sets out the latest figures from official and professional sources, shows where the market differs by region, and explains what it means if you plan to buy with a mortgage.
TL;DR
- Spain’s official Housing Price Index rose 12.2% year-on-year in the second quarter of 2026, with second-hand homes rising faster than new ones.
- Sales are mixed: notarial data show a six-year monthly low in August, while another count shows a rise. The two measure different things.
- Foreign purchases fell 13% in the first half of 2026, and non-resident buyers fell further.
- Forecasts point to high but stable transaction volumes and slower price growth, with supply still short of demand.
- For buyers, the practical response is to budget against current prices, compare several banks and have pre-approval in writing before you make an offer.
Table of Contents
- What prices are doing in 2026
- Sales and transactions: a mixed picture
- Regional differences: where the growth is
- Supply and demand: the structural shortage
- Foreign and non-resident buyers
- Mortgages and affordability
- The outlook for 2026 and 2027
- What this means if you want to buy
- Our perspective
- Get pre-approved before you start viewing
- FAQ
- Sources
What prices are doing in 2026
The headline is strong growth. According to the National Statistics Institute (INE), the annual variation rate of the Housing Price Index in the second quarter of 2026 was 12.2%. The same release splits the figure in two: new homes rose 7.4% and second-hand homes rose 12.9%.
That gap matters if you are choosing between a new build and a resale. Resale prices are the ones moving fastest right now, so the old rule that new builds carry the premium and the growth is worth checking against current listings in the specific town you like.
Notarial data point the same way. The General Council of Notaries reported that the average price of homes sold in August 2026 reached 1,959 euros per square meter, up 12.8% on the year. Tinsa, the valuation company, reports in its second-quarter index that new and used homes are 15.2% more expensive than a year earlier. Different methods give different percentages (appraisal values, deed prices, price index), but all three agree on the direction and on double-digit growth.
When you read a price figure, check what it measures. An index tracks the change in like-for-like homes, a notary average reflects whatever happened to sell that month, and an appraisal figure reflects valuations. Use the index for the trend and the notary figure for a rough sense of what homes are actually selling for.
Sales and transactions: a mixed picture
The sales numbers look contradictory until you see what each one counts.
Notarial statistics recorded 34,599 home transactions in August 2026, a 9.8% fall on the year, the lowest monthly figure in six years and the eighth consecutive monthly decline in that series. Notaries count deeds signed in that month.
A separate count reported in the press shows 49,319 home sales in August 2026, up 3.4%, alongside 33,841 mortgage loans, up 2.3%. That count tracks registered operations, which lag the signing, so the two series rarely line up in a single month.
The reasonable reading is that activity is high by historical standards but losing momentum at the margin, because prices are climbing faster than incomes. Do not build a decision on one month of data from one source. Look at several months and at both series.
Regional differences: where the growth is
Spain is not one market. In the second quarter of 2026, Tinsa found the strongest annual growth in the Valencian Community (+20.7%), Castilla-La Mancha (+20.3%), and the Canary Islands and Cantabria (+18.2% each). The coastal and island regions that foreign buyers favor are in that group, but so are inland areas where price levels started lower.
Long-run context helps too. BarrioRadar Research reported in October 2026 that 20 of 52 Spanish territories have exceeded their 2007-2008 nominal price peak, while 32 remain below it. In other words, the recovery is real but incomplete: many provinces are still catching up, and a national average hides both.
The differences inside a single city are as large as those between regions. The same research found prices varying by up to 5.9 times in Seville, 4.79 times in Madrid and 3.99 times in Barcelona across postcodes. A “Madrid price” means little until you know the neighborhood.
CaixaBank Research describes the current cycle as one in which house price formation is increasingly driven by local supply and demand, with major cities leading growth since 2015. It also observes that price rises in urban centers gradually spread to the surrounding metropolitan areas. If the city center is beyond your budget, the commuter belt is where the same pressure tends to arrive next.
Lenders also differ by location, since appraisal values and local market knowledge shape how much a bank will lend on a given property. If you are looking at specific areas, our pages on non-resident mortgages in Madrid, Murcia and Cantabria cover the local picture.
Supply and demand: the structural shortage
Prices are rising because Spain is not building enough homes. CaixaBank Research estimates an accumulated deficit of more than 730,000 homes since 2021. New construction has not kept pace with household formation.
Demand has been strong, but the same analysis says it is starting to moderate as high prices limit affordability. That combination, tight supply and cooling demand, is why analysts expect price growth to slow rather than reverse.
For a buyer, a short supply has two practical effects. Good properties in popular areas sell quickly, so you need to know your borrowing limit before you view. And negotiating room is usually smaller than it was a few years ago, so a firm financing position strengthens your offer.
Foreign and non-resident buyers
Foreign demand has cooled. Notarial figures reported by idealista show foreign purchases falling 13% in the first half of 2026 against the same period of 2025, with their share of total transactions down to 18.3%.
Within that group, non-residents (people who buy without living in Spain) made up 36.8% of foreign transactions, a drop of 18% on the first half of 2025. Rising prices and a stronger need to finance purchases are among the likely reasons, but the figures themselves show the fall, not the cause.
Fewer foreign buyers does not mean the market is closed to you. It means competition from abroad is lower than a year ago, and that buyers who arrive prepared, with documents ready and financing agreed, stand out. If you intend to rent the property out, check the local rules before you commit. This overview of rental rules for buyers in Spain explains what to verify on licensing and community bylaws before purchase.
Mortgages and affordability
Lending conditions are comparatively friendly, even as prices are not. The average interest rate on new mortgages in August 2026 was 3.08%, and 64.1% of new loans were fixed-rate against 35.9% variable. Monthly mortgage signings have been volatile, with some months down and others up.
Affordability is the pressure point. Tinsa reported in June 2026 that a household would need to devote 35.7% of disposable income to the first year of a mortgage, above the 35% level it considers reasonable. That is why banks look closely at your income, existing debts and the loan-to-value ratio (the share of the property price you borrow).
If you are weighing a fixed rate against a variable one, our guide to fixed vs variable Spanish mortgages explains how each works with Euribor, the benchmark rate that variable loans follow. To test your own numbers, the Spanish mortgage calculator gives a monthly payment estimate. Remember that the deposit is only part of the cash you need: taxes and fees add to it, as covered in our guide to Spanish property deposits and costs.
The outlook for 2026 and 2027
CaixaBank Research’s forecasts for 2026-2027 say transactions will likely stabilize at high levels, while price growth continues at a more moderate pace. Supply is expected to improve gradually but stay insufficient for national housing needs.
Forecasts are not guarantees, and they were made before the latest data. Treat them as a central scenario, not a promise. The useful takeaway is the shape: a market that is expensive and tight, not collapsing and not accelerating without limit.
What this means if you want to buy
The trends above translate into a few practical habits.
- Set your budget on current prices. Use recent figures for the exact area, not national averages or last year’s listings.
- Compare neighborhoods, not just cities. With price gaps of several times within one city, a few streets can change what you can afford.
- Know your borrowing capacity first. Eligibility rules for non-residents differ from those for residents, and our guide to mortgage eligibility in Spain explains what lenders look for.
- Get pre-approval in writing before you offer. In a tight market, sellers favor buyers who can show financing.
- Compare more than one bank. Terms vary between lenders, and a single bank’s offer is only one data point.
Your nationality also shapes the process. We have separate guides for US citizens, UK citizens and EU citizens, and the non-resident mortgage guide covers the full process.
Our perspective
Every market report we read says some version of the same thing: prices are high, supply is short, and buyers who prepare do better than buyers who react. We see the practical side of that every day. International buyers rarely lose a property because they chose the wrong street. They lose it because their financing was not settled when the right property appeared.
That is why we start with financing, not with listings. A written pre-approval tells you what you can spend, tells the seller you are serious, and lets you walk away from a deal that does not fit. We work with several Spanish banks rather than one, because each lender looks at non-resident income, residency status and the property differently, and the best fit is not the same for every buyer.
We would also encourage you not to read a single headline figure as a verdict on the market. A 12% national price rise does not tell you what is happening in your target postcode, and a weak month of sales does not mean prices are about to fall. Look at the data for the area you want, plan for payments you can carry comfortably, and ask for help with the Spanish bank process early. A clear plan reduces most of the stress.
Mirelle Leguia
Get pre-approved before you start viewing
Viva Mortgages Spain is a mortgage broker for non-residents buying in Spain. We give you access to several Spanish banks that lend to international buyers and handle the documentation with you, with multilingual support throughout. Our average pre-approval timeframe is 14 days.
The assessment and quote are free. If you go ahead, there is a one-off sign-up fee of €795, refundable if we cannot secure pre-approval, and a success fee of 0.70% on a successfully arranged mortgage. Details are on our fees page, and you can see what we arrange, from purchase mortgages to refinancing and construction finance, on our mortgages page. To see the steps, read how our process works.
FAQ
Are Spanish house prices still rising in 2026?
Yes. INE’s Housing Price Index rose 12.2% year-on-year in the second quarter of 2026, with second-hand homes up 12.9% and new homes up 7.4%. Regional rates differ widely, so check the figures for the area you are considering.
Is it a good time for a foreigner to buy in Spain?
That depends on your budget, your plans and the area. Prices are high and supply is tight, but foreign demand has eased, and the average new mortgage rate in August 2026 was 3.08%. Work out what you can afford comfortably and secure pre-approval so you can act when the right property appears.
Which regions are growing fastest?
In the second quarter of 2026, Tinsa recorded the highest annual growth in the Valencian Community, Castilla-La Mancha, the Canary Islands and Cantabria. Growth rates change from quarter to quarter, so recheck before you decide.
Are non-residents still buying in Spain?
Yes, but fewer than a year ago. Notarial data show non-resident foreign purchases fell 18% in the first half of 2026 compared with the first half of 2025. Many still buy, and financing remains available to non-residents through Spanish banks.
What do forecasts expect for the next two years?
CaixaBank Research expects transactions to stabilize at high levels, with slower price growth in 2026-2027. It also expects supply to remain short of housing needs.
Sources
- INE, Housing Price Index, second quarter 2026
- idealista, notarial data on home sales, August 2026
- elEconomista, home sales and mortgages, August 2026
- Tinsa, housing price index, second quarter 2026
- BarrioRadar Research, Spanish Property Market Report 2026
- CaixaBank Research, price dispersion in the housing market
- CaixaBank Research, real estate outlook 2026-2027
- idealista, foreign home purchases in Spain, first half of 2026
Recommended
- Spain Property Purchase Taxes: What You Pay and When
- Spanish Mortgage Calculator
- Spanish Property Deposits & Costs
- Spanish Mortgage Process Timeline
This article was produced with AI assistance and reviewed for accuracy by Mirelle Leguia, and expert in the Spanish mortgage space.