February 24, 2026

Housing Prices in Spain Expected to Rise Until 2027, According to Forecasts

The Spanish property market is not only maintaining its strength but appears to have entered a new phase of growth. According to recent reports published by the property portal Idealista, both macroeconomic forecasts and current market data point to the same conclusion: housing prices in Spain are expected to continue rising in the coming years.

Bankinter has revised its housing price forecasts upwards through 2027. According to its latest market report, prices could close 2025 with an increase of 12%, higher than previously estimated. For 2026, the bank anticipates a further 7% rise, while in 2027 growth is expected to continue at a more moderate pace of around 4%. 

This upward revision is driven by several structural factors that continue to support the market. Investor interest remains strong, employment figures are positive, and liquidity within the financial system is still abundant. At the same time, a key issue persists: limited supply. The restricted availability of development-ready land and challenges in bringing new housing projects to market in certain areas are creating an imbalance between supply and demand, placing continued upward pressure on prices.

Beyond forecasts, current data already confirms this trend. The latest Idealista price index shows that second-hand property prices in Spain rose by 18.4% year-on-year in January, reaching an average of €2,650 per square metre — the highest level recorded since the index began. Over the past three months alone, prices increased by 3.7%, demonstrating strong ongoing momentum.

Growth is not limited to one specific region. All autonomous communities have recorded year-on-year price increases. Particularly strong growth has been seen in regions such as Murcia, Andalusia, Asturias and the Community of Madrid, all exceeding the national average. In absolute price terms, the Balearic Islands and Madrid remain the most expensive markets, but provinces such as Málaga now rank among the priciest in Spain, consolidating their position as some of the country’s most dynamic markets.

In major cities and established coastal markets, prices continue to rise steadily. Valencia, Madrid, Málaga and Barcelona have all recorded significant increases, reflecting sustained and robust demand. The strongest pressure is concentrated in large urban centres, along the Mediterranean coast and in the islands — areas that combine quality of life, established infrastructure and strong international demand.

This last factor is particularly relevant in destinations such as the Costa del Sol. Foreign demand is not a short-term phenomenon but a structural trend. Buyers from different nationalities are drawn to Spain not only for investment opportunities, but also for lifestyle, legal security and a combination of climate, services and international connectivity that is difficult to match elsewhere in Europe.

At Felicity Estates, we see every day how strong this international interest remains. Many buyers value the stability of the Spanish property market compared to other European countries, as well as the potential for medium- and long-term capital appreciation in prime locations.

If Bankinter’s forecasts prove accurate and supply remains constrained, price pressure is likely to continue in the coming years, particularly in consolidated markets such as the Costa del Sol. In this environment, careful planning, local expertise and professional guidance are more important than ever.

The market continues to offer opportunities, but it is becoming increasingly selective. Choosing the right location, property type and timing can make a significant difference in terms of both return on investment and quality of life.

If you are considering selling your property, contact us and we will be happy to guide you through the process. Here you can find the most important information to get started: For sellers

If you are interested in buying a property on the Costa del Sol, tell us what you are looking for and we will take care of the rest: For buyers