Spain Doesn’t Have One Property Market — It Has Three

When people talk about “the Spanish housing market,” they often treat the entire country as if it were one single, uniform real estate landscape. But according to GIPE—the European Association of Professional Real Estate Agents—this is one of the biggest misconceptions in the industry.

“Whenever we see headlines claiming something like ‘Spanish house prices rise 15%’, the question is: which Spain are they talking about?” say Alfred van Krimpen and Christopher Fogelberg, GIPE’s president and vice president.

After decades working in the sector, they argue that Spain is really three very different property markets, each with its own drivers, risks and opportunities.

1. The Main Residential Market: Mortgage-Driven & Under Pressure

This is the market where most Spanish families buy their homes—and credit still reigns. Around 72% of purchases are financed by mortgages, according to Idealista. Prices have jumped 15.3% year-on-year, reaching an average of €2,517/m², yet access to affordable housing remains tight.

GIPE expects moderate growth of 3%–6% in 2026, particularly in big cities and surrounding commuter towns. Interest rates and mortgage availability will continue to dictate how this segment behaves.

2. The Coastal & Second-Home Market: Fuelled by Foreign Buyers

Move to the coast, and the dynamics shift completely. Here, the market runs on liquidity rather than lending. In just the first half of 2025, foreign buyers carried out over 71,000 transactions, making up 19.3% of all home sales, according to the notaries.

As van Krimpen and Fogelberg put it:
“That Swedish couple in Torrox didn’t ask about interest rates—they asked about the balcony’s orientation.”

For second-home buyers, lifestyle matters more than mortgage rates. GIPE predicts price increases of 5%–10% in 2026 in consolidated coastal areas, though warns that tourist hotspots may face volatility—particularly where rental rules are becoming stricter.

3. The Rural Market: Slow, Stable & Lifestyle-Oriented

Inland Spain is the calmest of the three markets. Prices move gently—often less than 2% a year—but interest is slowly rising as remote work and rural tourism grow.

As one GIPE agent explains:
“People here aren’t looking for an investment; they’re looking for a life.”

Expect stable performance in 2026, with slight increases of up to 4%, especially in towns with renovation potential and appeal for “slow living” second homes.

A Call for Clarity and Realism

Van Krimpen and Fogelberg conclude that real estate professionals need to bring perspective, not hype.

“Our duty is to explain what the numbers don’t show: that Spain is diverse—especially in its property markets. Housing isn’t just an investment. It’s where people live, dream, and grow old.”