2025 was a record year for the Spanish property market. Prices rose by 12.8% year on year, extending a run of annual growth that began in 2014. Sales volumes returned to levels not seen since 2007. Foreign buyers remain a defining force: in the first half of 2026 they bought 62,327 homes (Consejo General del Notariado), 13% fewer than a year earlier, yet 46.43% of all purchases in Alicante province (Registradores, second quarter of 2026). And this — despite the Golden Visa cancellation.
Update (August 2026): the Registradores' latest quarterly report puts Alicante province first in Spain for international demand — 46.43% of home purchases are now made by foreign buyers.
Update (September 2026): INE's house price index rose 12.2% year on year in the second quarter of 2026, extending a run of annual growth that began in 2014; it was the sixth quarter in a row above 12%. New build rose 7.4%, its slowest pace since early 2023; resale rose 12.9%.
What awaits the market in 2026? Below are data, not opinions.
What Happened in 2025
Key figures for 2025:
| Indicator | Value |
|---|---|
| Price growth (INE, year-on-year) | +12.8% |
| Average price, Spain (Idealista, Nov 2025) | €2,605/m² |
| Sales volume | ~720,000 transactions |
| Foreign buyers, first half of 2026 (Notariado) | 62,327 purchases (−13% year on year); 22,940 by non-residents (−18%) |
| Foreign share in Alicante province (Registradores, second quarter of 2026) | 46.43% |
| Foreign share in Málaga province (Registradores, second quarter of 2026) | 37.01% |
| Price growth, Valencian Community | +18.0% |
| Price growth, Alicante (province) | +15.3–15.9% |
| 12-month Euribor, September 2026 average | 3.247% |
Sources: INE house price index, Notariado transaction statistics, Banco de España.
The market is characterised by analysts (BBVA Research, Bankinter) as "overheated due to supply shortages" but not a speculative bubble: growth is driven by real demand, demographic pressure, and insufficient new construction.
Price Forecast for 2026
Analyst consensus: growth will continue but moderate.
| Source | 2026 growth forecast |
|---|---|
| CaixaBank Research | +6.3% |
| BBVA Research | +7% |
| Gilmar (Héctor Tramullas, CEO) | +4–6% |
| Elix (Teresa Marzo, CEO) | +5–6% |
| Gesvalt (Ricardo Martí-Fluxá) | +9–10% |
| REBS / University of Malaga | +7.6% (new builds), +8.7% (resale) |
Average expectation: +5–7% nationally, +7–10% in hotspot regions.
Drivers of continued growth: housing deficit (~600,000 units as estimated in 2025), population growth (+180,000 new households/year), limited new construction (~140,000 permits in 2025, 150,000 in 2026 — insufficient to meet demand), mortgage demand that has so far absorbed two ECB rate hikes in 2026, sustained foreign buyer demand.
Reasons for moderation: high-base effect, declining affordability for Spanish buyers, regulatory risks (discussion of additional taxes on non-resident buyers, restrictions on tourist rentals in certain regions).
Prices by Region: Costa Blanca, Costa del Sol, Costa Cálida
| Region | Avg. asking price/m² (Fotocasa, September 2026) | 2025 growth | 2026 forecast | Foreign share (Registradores, second quarter of 2026) |
|---|---|---|---|---|
| Costa Blanca (Alicante) | €3,167 | +15.3% | +5–9% | 46.43% |
| Costa del Sol (Malaga) | €4,118 | +15.3% | +5–9% | 37.01% |
| Costa Cálida (Murcia) | €2,215 | +14.6% | +6–8% | ~25% |
Costa Blanca (Alicante)
Spain's leader for foreign buyer share: 46.43% of purchases in Alicante province were by foreigners in the second quarter of 2026 (Registradores). The average asking price of €3,167/m² (Fotocasa, September 2026) is about 23% below the Costa del Sol. In 2026, growth of +5–9% is expected, with premium zones (Jávea, Moraira, Altea Hills) reaching +10%. Town-by-town detail is in our guide to where to buy property in Spain.
Prices by town (Fotocasa, average asking price, September 2026):
| Town | Price/m² |
|---|---|
| Benidorm | €4,115 |
| Jávea | €4,236 |
| Moraira (districts) | €4,210–4,970 |
| Alicante (city) | €2,706 |
| Calpe | €4,133 |
| Altea (Altea Hills) | €3,666 (€4,152) |
| Torrevieja | €2,931 |
| Finestrat / Polop | €3,669 / €3,625 |
Costa del Sol (Malaga)
Spain's most expensive coastal market: Marbella, Estepona, Benalmadena. Average asking price €4,118/m² (Fotocasa, September 2026); Marbella €5,039, Fuengirola €4,765, Estepona €4,487. A side-by-side comparison of the two coasts is in our Costa Blanca vs Costa del Sol guide. Luxury-dominated market: 62% of transactions above €2.5M are by foreigners, 60% without financing. Expected +5–9% in 2026, with the premium segment reaching +10%.
Costa Cálida (Murcia)
Explore properties on Costa Blanca, Costa del Sol, and Costa Calida. The most affordable of the three regions: €2,215/m² (Fotocasa, September 2026). Murcia recorded the highest growth among autonomous communities — +14.6% in 2025. Developing market with growing foreign buyer share. Expected +6–8% in 2026. Attracting buyers priced out of the Costa Blanca and Costa del Sol.
Foreign Buyer Demand
Foreign buyers are the defining force of the market. Key facts:
- First half of 2026: 62,327 home purchases by foreigners, 13% fewer than a year earlier; 22,940 of them by non-residents, 18% fewer (Consejo General del Notariado)
- Alicante province: 46.43% of purchases by foreigners in the second quarter of 2026; Málaga province 37.01% (Registradores)
- Top 5 nationalities: British, German, Dutch, Belgian, French (together ~48.5% of non-resident purchases)
- Non-residents buy more expensive properties on average than residents and Spaniards
New 2026 trend: growing share of buyers from the US, Latin America (Mexico), and Southeast Asia. Buyers are younger and more tech-oriented — founders, finance executives, digital nomads.
The Golden Visa cancellation (April 2025) has had no impact on demand. CaixaBank Research confirms: Golden Visas accounted for ~2,000 applications per year — negligible against the 62,327 foreign purchases recorded in the first half of 2026 alone.
New Builds vs Resale
| Segment | 2025 growth | Volume | Share |
|---|---|---|---|
| Resale | +12.8% | ~580,000 | ~80% |
| New builds | +12.1% | ~140,000 | ~20% |
The new-build share is growing (from 21% in 2024 to 22.2% in 2025) but remains far from the 2007 peak (42%).
The problem: construction is too slow. ~140,000 building permits in 2025 versus ~180,000 new households per year + ~50,000 non-resident purchases. The deficit is accumulating. BBVA forecasts permit growth of +16% and +13% in 2025–2026, but this is not enough.
For buyers, this means: with supply constrained, there are no grounds to expect price declines in 2026.
Rental Yields by Region
| City / Region | Average gross yield | Rental type |
|---|---|---|
| Alicante (city) | 5.6% | Long-term + seasonal |
| Benidorm | 6–8% | Short-term (year-round) |
| Torrevieja | 6–7% | Short-term + long-term |
| Jávea / Dénia | 4–6% | Seasonal (premium) |
| Malaga (city) | 4.7% | Long-term |
| Marbella | 4.9% | Short-term (premium) |
| Murcia (region) | 6–7% | Mixed |
| Spain average (third quarter of 2025) | 5.4% | — |
Rental prices in Spain hit a new record of €15.3/m² per month in June 2026, up 4.2% over the year (idealista) — still rising, but at roughly a third of 2024's pace as affordability tightens and rent caps reshape regulated markets. The long-term supply shortage persists: the Housing Law (2023) pushed some landlords toward tourist rentals, reducing stock for residents. On the open Costa Blanca market, Alicante rents rose 9.1% over the year (see our June 2026 rental update).
For investors: Costa Blanca offers the best value-for-money in terms of yields versus entry price compared to the Costa del Sol. Benidorm leads with yields up to 8%, driven by year-round demand.
Golden Visa Impact
Minimal. The Golden Visa generated ~2,000 applications per year against more than 60,000 foreign purchases in the first half of 2026 alone (Notariado). Foreigners buy for lifestyle, climate, rental yields, and capital appreciation — not for residence permits.
Alternative residency routes (Digital Nomad Visa, Non-Lucrative Visa) are available and functioning. More detail in our guide to the alternatives to the Golden Visa.
Mortgage Rates — Outlook
The 12-month Euribor averaged 3.247% in September 2026 (Banco de España resolution of 1 October, BOE of 2 October), its highest monthly average since July 2024, against 2.954% in August and roughly 2.17% a year earlier.
The ECB has raised rates twice in 2026: on 11 June and again on 10 September, when the deposit rate went to 2.50%. The next meeting is on 29 October 2026 and markets expect no change. Indicative fixed rates for non-residents are now 3.2–4.3% depending on bank and loan-to-value; variable offers sit at Euribor plus 1.0–1.5 points, and a variable loan reviewed now resets about one point higher than a year ago.
Outlook: no return to the near-zero Euribor of 2021–2022, and no cuts expected by the market for the rest of 2026. Budget on a Euribor of 3.1–3.3% and prefer a fixed rate where one of around 3.5% is available. Full figures, in euros, in our September 2026 ECB analysis.
More detail in our guide to mortgages in Spain for foreigners.
Should You Buy in 2026
Facts in favour: prices have risen year on year in every quarter since 2014 (INE) and are forecast to grow +5–7% further. The structural housing deficit will not be resolved in 1–2 years. Mortgage rates have risen in 2026 but remain well below the 2023 peak. Rental yields of 5–7% are among the best in Europe. Costa Blanca remains 40% below its 2007 peak prices.
Reasons for caution: the pace of growth is slowing (from +12.8% to +5–7%). Regulatory risks: possible restrictions on tourist rentals in certain cities. The additional tax on purchases by non-EU non-resident buyers proposed in January 2025 lapsed when parliament was dissolved for the general election of 29 November 2026; a future government would have to table it again.
Conclusion: 2026 remains a buyer-investor market. Waiting for a "price correction" is not supported by any of the major analytical sources.
Last updated: October 2026, with INE second-quarter prices, Notariado foreign-buyer data for the first half of 2026, Fotocasa September 2026 prices and the September Euribor average.
