Spanish housing market sees sharp sales decline as regional drops deepen and protests rise

National data show Spain's residential property transactions fell 7.6% in May 2026, marking the fifth consecutive month of decline, with a total of 61,140 sales recorded by the Colegio de Registradores. In Catalonia, sales dropped 5.8% in May to 8,854 transactions, while the Valencian Community experienced the steepest fall, a 12.5% decrease to 8,588 sales.

Mortgages overall rose 2.1% to 54,700 in May, but mortgage lending for housing slipped 0.5% to 42,200, the first decline in 23 months. The downturn coincides with heightened public pressure: a housing‑rights union in Barcelona staged large banner protests during the Tour de France, denouncing the conversion of residential blocks into tourist rentals by the Gallardo real‑estate group.

At the legislative level, the Junts party announced plans to forward a proposal to the Consell de Garanties Estatutàries that would amend urban‑planning law to restrict speculative property purchases in markets deemed “tensioned,” allowing purchases only for personal residence or long‑term rental.

Meanwhile, the sector’s top 40 real‑estate companies reported a 14% increase in aggregate turnover to €14.3 billion in 2024, underscoring a contrast between corporate earnings and the broader market slowdown.