Spain real estate market sees falling foreign sales and rising rents

The Spanish real estate market is experiencing divergent trends across ownership and rental sectors. Foreign property acquisitions in Spain fell by 13% during the first half of 2026, the sharpest decline since 2020. Despite this contraction, non-resident buyers continue to pay significantly higher prices than Spanish nationals, averaging approximately 3,493 euros per square meter compared to 1,971 euros for citizens. Dutch, German, and British nationals remain the leading groups of foreign buyers, with the Comunitat Valenciana serving as a primary destination.

In the rental market, average prices in Spain rose to 14.89 euros per square meter in the third quarter of 2026, representing a 7.98% increase compared to the previous year. Experts note that a shortage of available housing is driving demand and limiting tenants' ability to negotiate.

Simultaneously, judicial evictions are seeing a widespread decline across several regions. In Andalusia, evictions dropped by 32.3% in the second quarter of 2026, while Extremadura saw a 54.7% reduction. However, the situation remains complex in the Balearic Islands, which maintains the highest eviction rate per capita in the country due to rental pressures, even as total eviction numbers have decreased.