Spanish house prices rise 12.9% while housing supply continues to trail demand

Spanish house prices increased by 12.9% year on year in the first quarter of 2026 and by 3.5% from the previous quarter. Existing-home prices recorded a stronger annual increase than new housing.

During 2025, approximately 225,000 net households were created and non-residents purchased around 55,000 homes, while only about 92,000 new units were completed. Demand again exceeded new supply by a wide margin.

The problem is territorial

Pressure is concentrated in major urban areas, tourist regions and markets experiencing population growth. A national average can conceal substantial differences between provinces and even neighbouring municipalities.

Supply responds slowly

Land, planning, permits, construction, finance and technical capacity operate over long timelines. When demand changes quickly, the system cannot produce enough housing within one or two years.

Isolated measures have limits

Demand support can assist urgent cases, but it may also increase prices when supply remains rigid. A durable strategy requires affordable housing, rental supply, renovation, land and administrative coordination over many years.