Spanish housing prices surge 12.8%, tourism drives southern Europe rents

Spain's housing prices rose 12.8% year-on-year in Q1 2026, more than double the EU average of 5.1%, according to Eurostat data Source: lavanguardia, infobae. Only Portugal (17.8%), Bulgaria (14.8%), Slovakia (14.4%), and Croatia (14.3%) recorded higher increases Source: infobae. The quarterly rise in Spain (3.5%) also outpaced the eurozone (1.0%) Source: lavanguardia.

Rents rising faster in tourist-heavy countries

Meanwhile, a separate study by the New Economics Foundation links overtourism to rental inflation in southern Europe. Greek residents face an estimated €342 annual rent increase due to tourism since 2019, followed by Spain (€236), Portugal (€220), and Italy (€202) Source: euronewses. Eurostat data shows rents across the EU grew 3% YoY, with Croatia (21.9%), Bulgaria (6.4%), and Greece (5%) leading Source: infobae.

Contrasting factors

Researchers note that rent control policies in Spain have partially buffered the impact, while Italy's larger housing stock reduces pressure Source: euronewses. However, Ireland is projected to see the highest absolute rent increase in five years (€251) due to the Dublin airport expansion Source: euronewses. The studies collectively point to tourism as a key driver of housing costs, though construction costs have risen only minimally in southern Europe Source: euronewses.