Spanish housing market faces bubble‑like price pressures

Executives in the Spanish real‑estate sector warn that current dynamics echo the pre‑crisis period of 2007‑2012. One senior executive said, “Estamos cometiendo algunos de los errores del pasado,” and another added, “Muchas cosas empiezan a parecerse.” Analysts note a sharp rise in prices – 12.9% year‑on‑year in Q1 2026, the highest since 2007, and a 48‑quarter streak of increases. Affordability is eroding: a recent survey found that one in three respondents can afford less than €200,000, while two‑bedroom apartments in Madrid’s new districts exceed €300,000. Supply is outpacing demand, with developers reporting that “the supply is expelling demand.” While some market activity has slowed – sales fell 5% early in 2026 – mortgage signings grew 6.3%, indicating that demand remains but buyers are cautious. Experts caution against interpreting this slowdown as a forthcoming price collapse, stressing that limited housing stock and high construction costs keep prices elevated.