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Spanish Property Market: Prices Hit New Highs in 2026

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Spain Property Market Update: Prices Continue to Rise as the Market Becomes More Balanced
Q2 2026 housing figures show continued price growth and a strong market for sellers
The latest figures from the Spanish Notaries provide an encouraging snapshot of the property market in the first half of 2026. While sales volumes have moderated compared with the exceptionally strong levels recorded last year, property prices continue to rise strongly, highlighting the underlying strength of the Spanish housing market.
The figures suggest the market is becoming more balanced, with buyers taking a little longer to make decisions while demand remains strong and the shortage of available homes continues to support prices.
Sales Moderate After an Exceptional 2025
The Spanish Notaries recorded 181,206 property sales in Q2 2026, around 9% below the same quarter last year. This follows a 7% reduction in Q1, bringing total sales for the first half of 2026 to 353,237 transactions.
Although this represents a moderation compared with the exceptionally strong first half of 2025, it is important to remember just how active the market was last year.
Looking at the rolling four-quarter figure, which provides a more balanced picture by smoothing out seasonal variations, there were 726,349 transactions, just 2% below the previous year.
This demonstrates that Spain continues to have a very active property market by historical standards, even as buyers become more considered in their purchasing decisions.
Property Prices Continue to Climb
Perhaps the most significant headline from the latest figures is the continued strength of property prices.
The average Spanish property price reached €2,094 per square metre in Q2 2026, representing an impressive 10% increase year-on-year and the strongest annual rate of price growth since 2022.
Over the past five years, the average Spanish property price has increased by approximately 44%.
The combination of strong demand and limited housing supply continues to provide substantial support for property values across Spain.
What Does This Mean for Sellers?
For homeowners considering selling, the current market continues to present an excellent opportunity.
While buyers are becoming more selective and may take a little longer to commit, prices remain on an upward trajectory and demand for quality properties remains strong.
The key is realistic pricing and effective marketing. Well-presented properties in desirable locations, particularly those offering good value, modern facilities and attractive lifestyles, continue to attract buyers.
For sellers, this means there is still an excellent opportunity to take advantage of the strong prices being achieved across the Spanish property market.
A More Balanced Market
The latest figures point towards a market that is becoming more measured rather than less attractive. After several years of strong growth, a little more time for buyers to consider their options is a natural development.
With prices continuing to rise, supply remaining relatively constrained and Spain maintaining its appeal to both domestic and international buyers, the outlook for the Spanish property market remains positive.
For anyone considering selling in 2026, the current combination of strong property values and continued buyer demand makes this a market worth taking advantage of.

Fri 11th Sep 2026

Increase in Foreign Investment into the Property Market in Murcia

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Foreign Buyers Return Strongly to Spain’s Property Market as Demand Nears 100,000 Sales
Foreign buyers have made a powerful comeback in Spain’s property market during the second quarter of 2026, pushing first-half sales to a record high and bringing annual foreign demand within touching distance of 100,000 purchases.
According to the latest figures from the Spanish Land Registrars, foreign buyers completed 51,627 property purchases during the first half of 2026. This represents a 4% increase compared with the same period in 2025 and marks the strongest first-half result ever recorded.
A Strong Second Quarter Drives the Recovery
The figures are particularly encouraging given the slower start to the year. Foreign property purchases fell by 3% year-on-year during the first quarter, raising some concerns that international demand could be beginning to lose momentum.
However, the second quarter told a very different story.
Foreign purchases jumped by 11% year-on-year in Q2, with more than 26,800 homes purchased by international buyers during the three-month period.
This strong rebound pushed the rolling 12-month total to 99,410 foreign-buyer transactions —an increase of almost 3% compared with the previous quarter and just 590 purchases short of the symbolic 100,000 mark.
Foreign buyers are also becoming an increasingly important part of Spain's overall property market. In Q2, they accounted for 15.98% of all home sales, the highest proportion recorded in the Land Registrars' historical series.
The British remain Spain's largest foreign buyer group for the moment, but their long-standing lead is becoming increasingly narrow.
During the first half of 2026, British buyers accounted for an estimated 3,567 purchases, although this was 10% lower than a year earlier.
Meanwhile, Dutch buyers recorded 3,489 purchases, representing an impressive 12% increase.
The difference became even smaller in the second quarter. British buyers completed approximately 1,843 purchases, compared with 1,830 by Dutch buyers—a gap of only 13 transactions.
If these trends continue, the Netherlands could potentially overtake the UK as Spain's largest foreign buyer market later this year. Such a change would represent a significant moment after decades of British buyers dominating Spain's international property market.
Germany retained third place despite a modest 2% decline in purchases. Several other important markets recorded healthy growth, including Italy (+11%), Poland (+11%), Ireland (+6%) and France (+3%).
Belgium was one of the notable exceptions, with purchases falling by 16% during the first half, while Russian demand continued its longer-term decline.
Foreign Buyers Are Outperforming the Domestic Market
The strength of international demand becomes even clearer when compared with the Spanish domestic market.
Spanish buyers completed 294,403 property purchases during the first half of 202*, a decline of 3% compared with the same period last year.
In contrast, purchases by foreign buyers increased by 4% to 51,627.
As a result, international buyers increased their share of the Spanish housing market to around 15% during the first half of the year, compared with approximately 14% a year earlier.
A Positive Outlook for International Property Demand
The latest figures provide an important reminder that demand from overseas buyers remains a major driving force in Spain's property market.
Only a few months ago, the weaker first-quarter figures suggested that international demand could be starting to cool. The strong Q2 recovery appears to have changed that picture.
Not only has overall foreign demand returned to growth, but several key markets are also showing resilience. British and German demand has stabilised, while Dutch buyers continue to expand their presence at a rapid pace.
With the rolling annual total already at 99,410 purchases, the 100,000 milestone could now be reached very soon.
For regions such as Murcia and the Costa Cálida, where international buyers play an important role in the property market, these figures are particularly encouraging. Continued demand from overseas purchasers, combined with Spain's lifestyle appeal, climate, infrastructure and comparatively attractive property prices, should continue to support the market through the remainder of 2026.

Thu 20th Aug 2026

Choosing a Spanish Lifestyle

Why Most Foreign Buyers Choose Spain for Lifestyle, Not Necessity
Spain continues to attract buyers from around the world, but for most international purchasers, buying a home here isn't simply about finding somewhere to live – it's about embracing a better lifestyle.
A recent thinkSPAIN Buyer Trends Survey highlights a clear difference between Spanish and foreign buyers. While domestic purchasers are primarily driven by price, international buyers place much greater importance on location, property features and lifestyle. The number of bedrooms, bathrooms, outdoor space and proximity to the coast or golf courses often outweigh the purchase price when making a decision.
Foreign Buyers Spend More
The figures reflect these priorities. During the second half of 2025, foreign non-resident buyers paid an average of €3,242 per square metre for property in Spain, compared with €1,839 per square metre paid by Spanish nationals – around 76% more.
This premium is partly explained by the type of properties international buyers choose. Coastal homes, golf resorts, luxury developments and properties in popular holiday destinations typically command higher prices than the national average, making them especially attractive to overseas purchasers.
Retirement Remains the Biggest Motivation
According to the survey, retirement is by far the most common reason for buying property in Spain among foreign non-residents.
The results showed:
* 51% are purchasing a home for retirement.* 28% are buying a holiday home or second residence.* 15% are relocating for work, family or a lifestyle change.* 6% are purchasing primarily as an investment.
These figures demonstrate that the majority of overseas buyers are making long-term lifestyle decisions rather than purely financial investments.
Retirement Buyers Are Well Prepared
Many retirees arrive in Spain with substantial savings, pension income or funds released from selling property in their home country. As a result, financing is often not a major concern.
The thinkSPAIN survey found that only around 5% of foreign retirement buyers require a mortgage, making them financially prepared and generally able to move quickly once they find the right property.
For these buyers, quality of life is every bit as important as the property itself. Warm weather, relaxed living, excellent healthcare, lower living costs and welcoming communities all contribute to Spain's continued popularity.
Spain Continues to Lead for Quality of Life
Spain consistently ranks among the world's most desirable places to live. According to the latest InterNations survey, Spain has been ranked number one for quality of life for four consecutive years.
More than four out of five international residents rated Spanish healthcare positively, with respondents highlighting:
* Affordable healthcare (83% positive ratings)* Easy access to healthcare services (82%)* High-quality medical care (81%)
Combined with a Mediterranean climate, excellent transport links and a slower pace of life, it's easy to understand why so many overseas buyers choose Spain for retirement.
Holiday Home Buyers Want Convenience
Not every overseas purchaser is planning to move permanently. More than one in four foreign non-residents are buying a second home where they can enjoy regular holidays, extended stays or spend time with family.
These buyers are looking for properties that are easy to own and maintain. Secure gated communities, modern apartments, villas with low-maintenance gardens and developments offering property management services are particularly appealing.
Easy access from international airports, nearby beaches, golf courses and local amenities also play a significant role when choosing the ideal second home.
Murcia Continues to Attract International Buyers
The Region of Murcia remains one of Spain's best-value destinations for overseas buyers seeking sunshine, beautiful beaches and an exceptional quality of life. With modern new-build developments, established golf resorts and traditional Spanish towns all within easy reach of Murcia International Airport, the region offers something for retirees, holiday home owners and investors alike.
At Murcia Villas, we have been helping international buyers purchase property in the Region of Murcia and the southern Costa Blanca since 2002. Whether you're looking for a permanent home, a holiday apartment or a brand-new villa, our experienced bilingual team can guide you through every stage of the buying process.
If you're considering buying property in Spain, we'd be delighted to help you find the perfect home to match your lifestyle.

Mon 3rd Aug 2026

Buying a Business in Spain

Buying a business or traspaso in Spain
What is a 'traspaso' in Spain? How business transfers work when taking over a commercial property
Many international expats dream of running a café, bar, or boutique in Spain. If you are looking to invest in the Spanish commercial sector, you will quickly encounter the term traspaso.
A traspaso is the transfer of a leasehold business. You do not purchase the commercial property (the physical bricks and mortar, known as the freehold); instead, you buy the right to take over the existing business operations, its assets, and the premises' lease contract.
Understanding the legal aspects and financial mechanics of a traspaso is critical to ensure you are buying profitable operations rather than inheriting someone else's hidden debts. Buying a business in Spain requires a different approach compared to the UK or North America, as it is heavily reliant on local municipal compliance.
Purchasing a traspaso means taking over the operational rights, terrace permits, and customer base of a functioning business. Photo: UnsplashWhat is a 'traspaso' and how is it different from starting from scratch?When you buy a business as a traspaso, you acquire an operational entity, but you do not own the real estate. If you were to purchase the freehold, you would own the property outright. Conversely, starting from scratch would mean renting or buying an empty property, applying for every municipal license from zero, and building a brand without a safety net.
What is typically included in a traspaso?When you negotiate the price for a traspaso, you are paying a premium for speed and existing infrastructure. A standard transfer typically includes:
Fixed assets: Commercial machinery, furniture, fixtures, fittings, and existing stock.Intangible assets: The business name, brand reputation, online presence, and established customer base.Operational rights: Existing licences (such as the licencia de apertura or opening licence) and permits required to trade.The lease: The right to occupy the premises under an existing or newly negotiated agreement.Starting from scratch vs. traspaso: which is better?Deciding whether to open an empty commercial property or take over an existing business depends on your budget, timeline, and risk tolerance.
Starting from scratch vs. traspasoFactor Starting from Scratch Taking over a TraspasoTime to launch 6–12+ months (bureaucratic delays) 1–4 weeks (licences are already in place)Initial costs Lower purchase costs, high setup and renovation costs High initial premium (the traspaso fee)Licenses Must apply for new municipal licences Existing licences transfer overClientele Zero; requires heavy marketing Inherited, established clienteleAdvantages of a traspasoThe primary advantage is operational speed. Dealing with the Spanish government and local administrative areas to secure a new opening licence can take months or even years, especially for hospitality venues requiring soundproofing, fume extraction, and terrace permits. A traspaso allows you to invest efficiently, bypassing this bureaucratic bottleneck and generating revenue from day one.
How a traspaso works in practice: The lease negotiationUnder Spanish letting law (specifically the Ley de Arrendamientos Urbanos or LAU), a tenant running a commercial business has the right to transfer their lease to a third party without needing the landlord's explicit consent, provided they notify the landlord within one month.
However, in practice, bypassing the landlord is highly ill-advised. The law entitles the landlord to increase the rent by 20% upon a business transfer. Furthermore, the remaining duration of the lease might be too short to recoup your money. Most buyers will sit down with the outgoing tenant and the landlord to negotiate a brand-new lease contract or secure a lease option that guarantees a minimum 5 to 10-year term. Securing the property for a long enough period is vital for the long-term viability of the business.
Required documentation and due diligenceBefore you transfer any funds, rigorous due diligence is essential. Never sign a traspaso agreement or buy without independent legal representation. Your lawyer or gestor (a Spanish administrative specialist) should review:
Proof of ownership: Verifying the seller actually owns the equipment and has the legal right to execute the purchase.Licences and compliance: Checking with the local town hall (ayuntamiento) that the opening licence is valid, unrevoked, and matches the business activity exactly.Registration certificate: You must check the municipal registration certificate to ensure all safety, health, and fire compliance metrics are up to date. An outdated registration certificate can result in immediate closure by inspectors.Corporate standing: Checking the commercial register (Registro Mercantil) if the business is operated by a Spanish limited company (SL) to confirm there are no embargoes or outstanding legal disputes.Staff transfers and subrogationIf you purchase an ongoing business, Spanish employment law (Article 44 of the Workers' Statute) mandates that existing employment contracts automatically transfer to the new owner. You inherit their seniority, salaries, and severance rights. You cannot simply fire inherited staff without paying standard Spanish redundancy terms (finiquito). Always factor potential redundancy liabilities into the final purchase price.

Sun 2nd Aug 2026

Adding Value to Spanish Homes

Buying a business or traspaso in Spain
What is a 'traspaso' in Spain? How business transfers work when taking over a commercial property
Many international expats dream of running a café, bar, or boutique in Spain. If you are looking to invest in the Spanish commercial sector, you will quickly encounter the term traspaso.
A traspaso is the transfer of a leasehold business. You do not purchase the commercial property (the physical bricks and mortar, known as the freehold); instead, you buy the right to take over the existing business operations, its assets, and the premises' lease contract.
Understanding the legal aspects and financial mechanics of a traspaso is critical to ensure you are buying profitable operations rather than inheriting someone else's hidden debts. Buying a business in Spain requires a different approach compared to the UK or North America, as it is heavily reliant on local municipal compliance.
Purchasing a traspaso means taking over the operational rights, terrace permits, and customer base of a functioning business. Photo: UnsplashWhat is a 'traspaso' and how is it different from starting from scratch?When you buy a business as a traspaso, you acquire an operational entity, but you do not own the real estate. If you were to purchase the freehold, you would own the property outright. Conversely, starting from scratch would mean renting or buying an empty property, applying for every municipal license from zero, and building a brand without a safety net.
What is typically included in a traspaso?When you negotiate the price for a traspaso, you are paying a premium for speed and existing infrastructure. A standard transfer typically includes:
Fixed assets: Commercial machinery, furniture, fixtures, fittings, and existing stock.Intangible assets: The business name, brand reputation, online presence, and established customer base.Operational rights: Existing licences (such as the licencia de apertura or opening licence) and permits required to trade.The lease: The right to occupy the premises under an existing or newly negotiated agreement.Starting from scratch vs. traspaso: which is better?Deciding whether to open an empty commercial property or take over an existing business depends on your budget, timeline, and risk tolerance.
Starting from scratch vs. traspasoFactor Starting from Scratch Taking over a TraspasoTime to launch 6–12+ months (bureaucratic delays) 1–4 weeks (licences are already in place)Initial costs Lower purchase costs, high setup and renovation costs High initial premium (the traspaso fee)Licenses Must apply for new municipal licences Existing licences transfer overClientele Zero; requires heavy marketing Inherited, established clienteleAdvantages of a traspasoThe primary advantage is operational speed. Dealing with the Spanish government and local administrative areas to secure a new opening licence can take months or even years, especially for hospitality venues requiring soundproofing, fume extraction, and terrace permits. A traspaso allows you to invest efficiently, bypassing this bureaucratic bottleneck and generating revenue from day one.
How a traspaso works in practice: The lease negotiationUnder Spanish letting law (specifically the Ley de Arrendamientos Urbanos or LAU), a tenant running a commercial business has the right to transfer their lease to a third party without needing the landlord's explicit consent, provided they notify the landlord within one month.
However, in practice, bypassing the landlord is highly ill-advised. The law entitles the landlord to increase the rent by 20% upon a business transfer. Furthermore, the remaining duration of the lease might be too short to recoup your money. Most buyers will sit down with the outgoing tenant and the landlord to negotiate a brand-new lease contract or secure a lease option that guarantees a minimum 5 to 10-year term. Securing the property for a long enough period is vital for the long-term viability of the business.
Required documentation and due diligenceBefore you transfer any funds, rigorous due diligence is essential. Never sign a traspaso agreement or buy without independent legal representation. Your lawyer or gestor (a Spanish administrative specialist) should review:
Proof of ownership: Verifying the seller actually owns the equipment and has the legal right to execute the purchase.Licences and compliance: Checking with the local town hall (ayuntamiento) that the opening licence is valid, unrevoked, and matches the business activity exactly.Registration certificate: You must check the municipal registration certificate to ensure all safety, health, and fire compliance metrics are up to date. An outdated registration certificate can result in immediate closure by inspectors.Corporate standing: Checking the commercial register (Registro Mercantil) if the business is operated by a Spanish limited company (SL) to confirm there are no embargoes or outstanding legal disputes.Staff transfers and subrogationIf you purchase an ongoing business, Spanish employment law (Article 44 of the Workers' Statute) mandates that existing employment contracts automatically transfer to the new owner. You inherit their seniority, salaries, and severance rights. You cannot simply fire inherited staff without paying standard Spanish redundancy terms (finiquito). Always factor potential redundancy liabilities into the final purchase price.

Sat 1st Aug 2026

House Prices in Spain will Stay strong until 2029

Spain Forecast to Lead European House Price Growth Until 2029
Spain's property market continues to outperform much of Europe, with experts forecasting strong house price growth for years to come. While this is welcome news for homeowners and property investors, it also highlights the ongoing challenge facing buyers trying to enter the market.
According to leading ratings agency Standard & Poor's (S&P), Spain is expected to record the strongest house price growth in Europe over the next several years. Prices are forecast to increase by 9.1% in 2026, followed by 7.4% in 2027 and a further 6.2% in 2028.
## Why Are Spanish House Prices Continuing to Rise?
The main reason is a continuing imbalance between supply and demand.
Demand for homes remains high, supported by:
* Strong employment growth* Rising wages* Continued immigration* High demand from international buyers
At the same time, the supply of new homes remains limited due to planning delays, labour shortages and rising construction costs. As a result, demand continues to outpace the number of new properties coming onto the market.
Although governments across Europe have announced new housing initiatives, including Spain's €7 billion State Housing Plan, S&P believes these measures will take years to significantly increase housing supply. In the short term, any policies that stimulate demand without delivering more homes could place even greater upward pressure on prices.
Good News for Homeowners and Investors
For existing property owners, continued price growth is encouraging. Rising property values help build equity and make real estate an attractive long-term investment.
This is particularly positive for buyers who have already secured a home in sought-after areas such as the Costa Cálida and the Region of Murcia, where demand from both Spanish and international buyers remains strong.
The Challenge for First-Time Buyers
The downside is that rising prices make it increasingly difficult for first-time buyers to enter the market.
As property prices increase, rents often follow, making it harder for younger generations to save for a deposit. Housing affordability has become an important political issue across Europe, with governments exploring measures such as rent controls, increased taxes on investors and tighter regulations on tourist accommodation.
However, many housing experts believe these policies do little to solve the underlying problem.
Supply Remains the Key Issue
The biggest challenge facing Spain's housing market is simply that there are not enough homes being built to meet demand.
Until housing supply increases significantly, property prices are expected to continue rising, benefiting homeowners while making it more challenging for buyers and renters alike.
What Does This Mean for Buyers?
For anyone considering purchasing property in Spain, the forecasts suggest that delaying a purchase could mean paying more in the future. While no market can be predicted with complete certainty, the long-term outlook remains positive, supported by strong demand, limited supply and Spain's continued appeal to both domestic and international buyers.
For overseas buyers looking for excellent value, the Region of Murcia continues to offer an attractive alternative to many of Spain's more expensive coastal areas. With modern developments, established golf resorts, beautiful beaches and excellent transport links, Murcia remains one of the country's best locations to enjoy the Spanish lifestyle while benefiting from a market with strong long-term potential.
At Murcia Villas, we have been helping clients buy property in the Region of Murcia and the southern Costa Blanca since 2002. Whether you're searching for a holiday home, retirement property or investment, our experienced bilingual team is here to guide you through every step of the buying process.

Fri 31st Jul 2026