Overall Rise in Coastal Prices with Significant Regional Differences
The latest “2026 Coastal Housing Report” from appraisal firm Tinsa shows that housing prices in Spain’s coastal areas are accelerating. In the first quarter of 2026, the average price in coastal municipalities (excluding provincial capitals) reached €1,992 per square meter, a 13.5% increase compared to the same period last year. Second homes, typically used for holidays, command an even higher average price of around €3,150 per square meter.
In terms of price growth by region, the islands (+14.1%) and the Mediterranean coast (+13.9%) show the strongest momentum, followed by the Andalusian Atlantic coast and the northern coast, both with an increase of 11.7%.
Provincial Growth Rankings: Valencian Community Shows Strong Performance
At the provincial level, the four coastal provinces with the highest annual price growth all saw increases of over 16%. The rankings are as follows:
- Santa Cruz de Tenerife: +19%
- Alicante: +18.9%
- Valencia: +17.7%
- Málaga: +16.5%
Notably, two provinces in the Valencian Community—Alicante and Valencia—are in the top three. Furthermore, a total of 48 coastal municipalities across the country have experienced price increases of over 20%, indicating hot spots in the local market.
Market Analysis: Supply Shortages Coexist with Weakening Demand
Cristina Arias, Director of Tinsa’s Research Department, points out that the current coastal real estate market presents a complex situation of “rapid price increases, but with initial signs of demand fatigue.” She believes that the supply shortage is the core factor supporting high prices and exacerbating the difficulty for local residents to buy homes. Although market divergence is increasing, overall housing affordability remains manageable, but housing accessibility in some areas has reached a critical level.
On the supply side, new housing permits in coastal areas (excluding provincial capitals) increased by 21.7% year-on-year, showing a recovery in construction activity. However, land shortages, high costs, labor shortages, and macroeconomic uncertainty continue to constrain the supply of new homes.
In terms of transaction volume, home sales in coastal municipalities grew by 1.7% year-on-year in 2025. While the growth rate has slowed, the total volume remains high, marking the fourth-highest level since records began in 2006. The Mediterranean coast is the most active region, with 127,130 transactions in 2025, accounting for 62% of the total for all coastal municipalities in the country.
Structural Shifts in Demand from Foreign Buyers
The report shows that demand from foreign buyers is undergoing a structural shift. In traditional hotspots like the islands (-9.4%) and the Mediterranean coast (-3.0%), demand from foreign buyers has declined. Meanwhile, foreign purchases have grown significantly in areas like the Andalusian Atlantic coast (+11.4%) and the northern coast (+10.9%). With the exception of the islands, the volume of transactions by foreign buyers in all Spanish coastal regions is at an all-time high.
In the holiday home market, foreign buyers are the main driving force. Non-resident foreigners dominate 26% of these areas, while resident foreigners dominate 30%. The main source countries are the UK and Germany, followed by buyers from Central and Eastern Europe, the Nordic countries, Italy, and Russia.
