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Spain Housing Costs Soar in 2025 as Forecasts Point to Milder 2026

Analysts expect slower gains in 2026 due to scarce new supply.

Overview

  • Official and market data show sale prices up about 9.5% year over year to September and rents rising roughly 13% in 2025.
  • Home sales are on track to surpass 700,000 for the year, nearly 10% above 2024 and the second-highest total on record after 2007.
  • CaixaBank Research projects sale prices will increase by more than 6% in 2026 with high activity persisting but at a cooler pace.
  • Building permits are forecast at about 150,000 homes in 2026 versus 140,000 in 2025, still insufficient to meet demand as second-hand housing accounts for around 80% of transactions and new-build leads price gains.
  • Top districts in Madrid and Barcelona show signs of stabilization with microadjustments, some smaller provinces record localized declines, and housing remains a headline political issue with pushes for stronger rental rules and expanded public stock.