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Spain’s real estate market is heading into 2026 under strong pressure, with limited housing supply and steadily rising prices in both sales and rentals, according to analysts and sector experts.
The main driver behind this situation is a structural shortage of available homes, while demand remains high from both domestic buyers and international investors. This imbalance continues to push prices upward and makes access to housing increasingly difficult for many households.
Industry forecasts indicate that home prices will continue to grow throughout 2026, while rents will also rise due to the lack of available rental properties. In many cities, the number of homes on the market has fallen sharply, creating intense competition among buyers and tenants.
Major urban areas such as Madrid, Barcelona, Valencia and Málaga are especially affected. These cities combine strong job markets, population growth and international demand, but very limited new housing development, which further tightens supply.
Although some experts expect a slight slowdown in the number of transactions, they agree that prices will remain on an upward trend because the fundamental problem — too little housing for too many people — has not been resolved.
In summary, specialists agree that Spain’s real estate market will not see significant relief in 2026. With scarce supply and strong demand, property prices and rents are expected to continue rising, keeping pressure on buyers, tenants and the wider economy.
