Spain is experiencing a housing boom supported by job growth, wage increases above inflation, population growth and strong foreign buyer activity. At the same time, new construction is increasing but still falls short of demand, so the structural housing deficit persists and continues to push prices up. Transaction volumes are high by historical standards, with around 700,000 home sales per year (~19.7% increase year on year). Demand is broad-based, supported by both domestic buyers and foreign investors. However, supply has not tightened the balance despite rising construction permits and a rebound in new-home approvals, the accumulated housing deficit since 2021 exceeds 500,000 units.

The Spanish residential market continues to show an upward price trend—both in new and existing homes clearly reflecting the persistent tension between demand and supply. According to Tinsa, in the third quarter of 2025, the average value of housing (new and used) increased by 11.7% year-on-year and 3.0% quarter-on-quarter in nominal terms.

Source: Global Property Guide, CBRE, Caixa bank research.