Overall Transaction Volume Declines, Market Shows Signs of Cooling
According to the Q2 2026 Real Estate Registry Statistics from the Spanish Association of Property Registrars, a total of 167,934 residential properties were sold nationwide in Spain, a decrease of 5.7% from the previous quarter and 2.3% year-on-year. This marks the second consecutive quarterly decline and the lowest level in the last seven quarters, indicating a slowdown in market activity.
Breaking it down, the new-build market saw a particularly significant drop, with 34,919 sales, down 11.5% quarter-on-quarter. Resale property transactions totaled 133,015, a 4% decrease from the previous quarter. Geographically, 15 autonomous communities and 34 provinces experienced a quarterly drop in home sales. The report suggests that persistently high housing prices, rising financing costs, and a shortage of housing supply are the main factors dampening some buyer demand.
Prices Rise Against the Trend, Average Price Sets Another Record High
Despite the drop in transaction volume, house prices have continued their upward trend. In the second quarter of 2026, the average price of residential property in Spain reached €2,487 per square meter, a new all-time high, representing a 2.4% increase quarter-on-quarter and a significant 9.2% rise year-on-year.
The average price for resale homes rose to €2,448 per square meter, up 3.5% from the previous quarter, while the average price for new-builds saw a slight adjustment, decreasing by 0.7% to €2,636 per square meter. Regionally, the Community of Madrid led the country with an average price of €4,477 per square meter, followed by the Balearic Islands, the Basque Country, the Canary Islands, and Catalonia. Among major cities, San Sebastián had the highest house prices at €6,420 per square meter, with Madrid (€5,534) and Barcelona (€5,045) following closely.
Foreign Buyer Share Reaches Historic Peak
Contrary to the cooling trend in the overall market, demand from foreign buyers in Spain has grown. In the second quarter, foreign nationals completed over 26,800 residential transactions, accounting for 15.98% of the national total—a new all-time record.
Data shows that British, Dutch, and German buyers were the most active groups. The impact of foreign investment is particularly strong in some popular areas. For example, in the Balearic Islands and the Valencian Community, properties purchased by foreign buyers accounted for over 30% of the total transactions.
Mortgage Market Diverges: Fewer Loans, Higher Average Debt
The financing market also shows signs of divergence. The total number of new residential mortgages in the second quarter was 129,240, down 3.3% from the previous quarter. However, the average debt level for homebuyers continues to climb. Data reveals that the average mortgage loan amount per property increased to €176,453, a 2.3% rise quarter-on-quarter. This figure has now risen for nine consecutive quarters, setting another record high. This phenomenon indicates that the Spanish real estate market is entering a complex phase of ‘cooling transactions amid climbing prices and debt’.
