Spain's housing prices set for 9% rise in 2026 as Madrid districts flagged for strongest gains

S&P Global Ratings projects that Spanish house prices will increase by 9.1% in 2026, making Spain the leading market for price growth in Europe through 2029. The agency attributes the surge to a robust labour market, rising wages, strong immigration‑driven household formation and a persistent shortage of housing supply, with investment in new residential construction remaining flat since 2019.

In Madrid, the market has already reached a historic peak, with prices up 11.6% year‑on‑year in June 2026. Real‑estate expert Miguel Felice identified three neighbourhoods expected to outpace the city’s overall appreciation over the next five years: San Fermín in Usera, Ventas in Ciudad Lineal, and the Vista Alegre/San Isidro area, all benefitting from good metro links and rising demand.

The combined outlook points to continued upward pressure on homebuyers and investors across Spain, especially in the capital’s most promising districts.