Up, up and up again

Whatever has been happening in the world at large, it looks as though the Spanish property market is still a popular choice with house prices continuing to increase.

• Between January and March 2026, house prices have risen by 3.2%
• The Valencian Community continues to be the second highest region to grow
• Spain has risen notably as a country attractive to investors

It may still not be the height of the 2007 property boom, but the statistics show (Tinsa report) that house prices in Spain are continuing to rise. The level of increase varies across the country but coastal markets continue to be one of those most guaranteed to be on the up. Tinsa is Spain’s leading real estate valuation and housing market analysis and it provides official property information for banks and mortgage providers.

Regionally, Madrid shows the greatest increase over the year (19.2%) followed by Valencia with 19.1%.

Can people afford these prices?

It is calculated that payment for your accommodation – either through rental fees or a mortgage, becomes unaffordable after it reaches 35% of your household income. Nationally the amount deducted on average has risen to 33.9% – very close to the threshold figure. But this is the average across the country and in some areas it has already been exceeded. For example, the affordability ratio in the Balearic islands is 54%. A situation which has caused tension between those living and working on the islands and those with the ready purchasing power.

Spain – the country to invest in

It isn’t only foreigners seeking a holiday home or a retirement destination, who are attracted to Spain’s housing market. The CBRE European Investor Intentions Survey 2026 indicated that Spain has risen over the past five years as a place in which to invest your capital.

The annual survey has shown a steady increase with Spain not even featuring in the ranking in 2021 and climbing steadily to be the most popular for investment in 2026. Spain now features higher than the UK, Germany and France as a magnet for investors.

It isn’t only Spain as a country that is considered a desirable place to invest, Madrid continues to be second place among Europe’s most attractive cities for investment and, unusually, Spain has a second contender with Barcelona in fourth place.

Explaining the trends

So why is Spain proving to be such a solid and attractive housing market? There are a number of factors at work and plenty of speculation too. Overall, the economy in Spain is looking healthy. Not everyone who lives here might feel the benefits of this but certainly it would seem that there are good levels of employment. The availability of new build property has slowed, making it more desirable and keenly sought after. Major cities do not have as much available resale and with less coming on the market, those that do are more in demand.

Sufficient houses are simply not being built to meet demand. A situation that the Bank of Spain has drawn attention to. Neither does it appear to be easing, despite requests from the IMF (International Monetary Fund) for Spain to free up more land and to speed up planning approvals.

In addition, as mentioned previously, interest from investors has also triggered spiralling costs in some places. Of course, this has had a downside of making property less affordable for those living in the area and this balance of a healthy market and affordability still needs to be resolved.