Spain's housing market hits record highs as prices surge nationwide

Housing prices in Spain have risen sharply in 2026. The median price of existing homes rose 15.8% year‑on‑year, reaching an average of €2,823 per square metre nationwide, with Madrid breaking the €6,000 per‑m² barrier—one of 24 Spanish capitals at historic highs. Smaller cities such as Ciudad Real and León saw even larger jumps, while large markets like Madrid and Barcelona slowed to around 6–7% growth.

Eurostat data shows Spain’s house‑price index up 12.8% in the first quarter of 2026, more than double the EU average of 5.1%. Rental prices also climbed, pushing the housing‑cost effort for many households above 40% of income, especially for young buyers who would need over ten years of full salary just for a down‑payment in Madrid.

The new‑home sector mirrors the trend: prices increased 9.8% year‑on‑year to €3,250 per m² on average, with Barcelona, Madrid and the Balearic Islands exceeding €5,000 per m². Construction costs rose 11.2% year‑on‑year, adding further pressure.

In Andalusia, despite a fall in transaction volume, prices rose 8.6% in April, with Malaga and Sevilla now above the 2007‑08 bubble peaks. The cost per square metre in Malaga reached €2,937, requiring about 52% of a household’s disposable income for mortgage payments.

Overall, the combined surge in purchase and rental costs is tightening affordability across the country, prompting calls for increased housing supply and policy interventions.