Housing Price Trends in Spain Q1 2026

Housing prices in the first quarter of 2026 increased by +14.3% year-on-year in nominal terms (+11.8% discounting inflation vs. the 10.7% recorded in the previous quarter), according to data from the IMIE report by TINSA Spain by Accumin and Accumin Intelligence.

Key insights:

• Price growth continues to be widespread across the country, with particularly strong variation rates around employment hubs and tourist hotspots.
• In the first months of 2026, the labor market has remained resilient, despite some signs of slowing growth. At the same time, the war in the Middle East began in March to impact the general price level and the cost of money.
• Housing transactions in January recorded declines after several months of deceleration, although the robust levels of the past five years remain. At the beginning of 2026, the impact of past interest rate cuts (which was very present in January 2025) has already been absorbed by the market, making this slowdown in transactions reasonable.
• Development activity in January showed a slight boost compared with the average number of permits issued in 2025.
• Although the national affordability rate stands at a reasonable 34% of the average household’s disposable income, residential price growth above inflation combined with stabilizing interest rates has continued to increase the difficulty of access to housing this quarter.
• In major employment hubs and tourist hotspots, access to housing has reached critical levels for several periods.
• In the coming months, we will see how the war in the Middle East affects inflation and benchmark interest rates, with potential opposing pressures on the residential market.