Overall Market Trend: Declining Sales Volume, Soaring Prices
According to the latest quarterly report from the Spanish Association of Property Registrars (Colegio de Registradores de la Propiedad), the country’s real estate market is undergoing a significant adjustment. Data shows a total of 167,934 property sales were completed nationwide in the second quarter of 2026. This figure represents a 5.7% decrease compared to the previous quarter and a 2.3% drop year-on-year, marking the lowest level of transactions since the fourth quarter of 2024.
In stark contrast to the shrinking transaction volume, property prices continue to climb. The national average housing price has risen to €2,487 per square meter, a staggering 9.2% increase year-on-year, setting another new record. This ‘sales-decline-price-rise’ scenario highlights the complex supply-and-demand dynamics in the current market.
Divergence in New and Resale Property Markets
When looking at property types, the cooling trend in the new-build market is more pronounced. Sales of new homes in the second quarter totaled 34,919, a significant 11.5% drop from the previous quarter. The resale market also saw a decline in transactions, with 133,015 sales, down 4% quarter-on-quarter.
In terms of pricing, resale properties were the main driver behind the overall price increase, with their average price rising to €2,448 per square meter, a new record. In contrast, the average price of new-builds saw a slight decrease of 0.7%, falling to €2,636 per square meter.
Record-High Influence of Foreign Buyers
Amid weakening domestic demand, the activity of foreign buyers has reached an unprecedented high. During the reporting period, foreign nationals purchased over 26,800 properties in Spain, accounting for 15.98% of the total market share—a new all-time high.
Among these foreign buyers, citizens from EU countries were dominant, making up 57.39% of the total, with buyers from the UK, the Netherlands, and Germany being the most active. The concentration of foreign purchases is even higher in some tourist hotspots. For example, in the Balearic Islands, foreign buyers accounted for 32.27% of sales, and in the Valencian Community, the figure reached 31.03%.
Significant Regional Price Disparities
Price levels continue to vary greatly across Spain’s regions. Among the Autonomous Communities, Madrid leads with an average price of €4,477 per square meter, followed by the Balearic Islands (€4,311/sqm) and the Basque Country (€3,616/sqm). The Canary Islands and Catalonia also rank in the top five.
Focusing on cities, the most expensive is San Sebastián in the Basque Country, with an average price soaring to €6,420 per square meter. It is followed by the capital, Madrid (€5,534/sqm), Barcelona (€5,045/sqm), Palma (€4,291/sqm), and Bilbao (€3,764/sqm).
Mortgage Market Slows in Tandem
Data from the credit market also reflects the slowdown in property-buying activity. A total of 129,240 housing mortgages were signed in the second quarter, a 3.3% decrease from the previous quarter, but still representing a 9% increase compared to the same period last year.
Notably, while the number of loans has decreased, the average loan amount has continued to climb, reaching €176,453—also a new historical record. This indicates that for buyers who require financing, the financial costs and debt burdens are steadily increasing.
