Spain's major cities see housing price shift to outskirts as new construction drops

Data from Atlas Real Estate Analytics show that between January 2025 and April 2026 the average offer price of homes in the periphery of Madrid, Barcelona and Valencia rose faster than in the city centres. In Madrid the inner‑city price rose 11.1% to €9,107 / m² while the outer area jumped 17% to €4,452 / m². Barcelona’s centre increased 10.4% to €6,355 / m² versus an 11.7% rise to €3,773 / m² in its suburbs, and Valencia’s core climbed 13.3% to €4,500 / m² compared with an 18.2% increase to €3,275 / m² on the outskirts. Alejandro Bermúdez, CEO of Atlas Real Estate, said the central‑city markets are approaching a point where “buyers no longer accept any price,” signaling a narrowing market and slower turnover of expensive homes.

At the same time, the number of completed housing units in Spain fell sharply, with certifications of finished works down 14.5% for the year, after quarterly declines of 8.6%, 3.1% and 8.0%. Industry experts cite structural hurdles such as limited land, high construction costs, financing difficulties and administrative complexity as drivers of the slump.

These trends indicate a dual pressure on the Spanish housing sector: price growth is moving to more affordable peripheral zones, while supply of new homes contracts sharply.