Spain’s housing market is often discussed as a single entity—but according to the professional association GIPE, that’s a fundamental mistake.
“Every time we read a headline claiming ‘Spanish house prices rise 15%’, the same question arises: which Spain are they talking about?” say Alfred van Krimpen and Christopher Fogelberg, president and vice president of GIPE, the European Association of Professional Real Estate Agents.
After decades in the business, they argue Spain is really three property markets in one—each with its own logic, risks and opportunities.
The main residential market: credit-driven and squeezed
This is the market where most Spaniards live their lives. Families, couples and first-time buyers still depend heavily on credit, with 72% of purchases financed by mortgages, according to Idealista. Prices have risen sharply—up 15.3% year-on-year to an average of €2,517/m²—but access to affordable housing remains limited.
GIPE expects modest growth of 3% to 6% in 2026, mainly in large cities and their outskirts, with interest rates and credit conditions setting the tone.
The coastal and second-home market: powered by foreign capital
On the coast, it’s a different story entirely. Here, liquidity rules. In the first half of 2025, foreign buyers completed over 71,000 transactions, representing 19.3% of all home sales, according to the notaries.
“That Swedish couple in Torrox didn’t ask about interest rates—they asked about the balcony’s orientation,” note the GIPE authors. For this segment, lifestyle trumps lending rates.
Prices are expected to rise between 5% and 10% in 2026 in established areas, though GIPE warns of volatility in tourist zones subject to tighter rental regulations.
The rural market: slow, steady, and about quality of life
Inland Spain remains the quiet corner of the property map. Prices move little—often below 2% a year—but interest is growing thanks to remote work and rural tourism.
As one GIPE agent put it, “People here aren’t looking for an investment; they’re looking for a life.”
The forecast for 2026 is stable, with slight increases up to 4%, and more opportunities in rehabilitation and “slow living” second homes.
Realism and responsibility
Van Krimpen and Fogelberg conclude that the role of professionals is to inject clarity, not hype.
“Our duty is to explain what numbers conceal: that Spain is diverse, also in its property markets, and that housing, beyond being an investment, remains the place where people live, dream, and grow old.”
