Spain's Housing Market: Record Prices Persist Despite Falling Sales and Mortgage Demand

The price of second-hand housing in Spain reached a record 3,133 €/m² in June 2026, a 17.2% increase year-on-year, the highest in 21 years Source: Euronews. However, the market is showing signs of strain: compraventa transactions fell for the fifth consecutive month in May, down 7.3% year-on-year, and mortgage demand has begun to decline Source: El Confidencial, La Vanguardia.

Precios y Oferta

• The price surge is driven by a severe imbalance between high demand and scarce supply. Only two municipalities in Spain have prices below 400 €/m²: Fuente Obejuna (369 €/m²) and Pedro Muñoz (377 €/m²) Source: El Español.
• According to Fotocasa, 14 autonomous communities saw double-digit annual increases, led by Murcia at 28% Source: Euronews.

Transacciones y Hipotecas

• 56,462 compraventas were registered in May, a decline of 7.3% year-on-year. The cumulative drop for 2026 is 3.4% Source: El Confidencial.
• Banks report a net decrease in mortgage demand for the first time since 2023, with a diffusion index of -30%, as the Euribor edges toward 3% and the BCE raised rates to 2.25% Source: La Vanguardia.
• Despite fewer mortgages, the average loan amount rose to nearly 175,000 €, reflecting higher home prices Source: El Español.

Regulación y Alquiler

• In zones with rent controls, the supply of long-term rentals has fallen while temporary rentals (seasonal) have surged 13% nationally. In San Sebastián, permanent rental supply dropped 42%, while temporary listings rose 37% Source: Infobae.
• The economist Pablo Gil criticizes the government's plan to build 15,000 homes per year, calling it "demagogia" because it would take 48 years to address the estimated deficit of 750,000 homes Source: El Confidencial.

Acceso de Jóvenes

• A savings of 30,000 € is insufficient for the down payment and costs on a 90 m² home in any Spanish capital. Even 50,000 € only suffices in 21 capitals, mostly in less dynamic economies Source: Infobae.
• Experts call for a state pact to increase housing supply and improve affordability, warning of a social emergency Source: La Vanguardia.

The market is at a crossroads: prices continue to climb, but the rest of the indicators—transactions, mortgages, and rental availability—are flashing warning signs.