If you've been keeping an eye on the property market lately, you may already have noticed that Spain is doing remarkably well. And that feeling is correct. A recent S&P Global report shows the Spanish market will be one of the strongest performers in all of Europe over the coming years.
A 9.3% price increase is forecast for 2026. For comparison: the European average sits at 4.3%. That's more than twice as much. And meanwhile, countries like France, Germany and Italy are moving at a much slower pace.
After strong rises of 11.4% in 2024 and 12.3% in 2025, growth keeps going in the coming years:
Source: S&P Global, expected residential property price growth in Spain
Yes, growth is gradually slowing down. But there's no correction or downturn in sight. S&P Global expects a market that is maturing, not collapsing.
For people looking at popular regions like the Costa Blanca or the Balearics, what this means in practice: the combination of quality of life and value appreciation stays attractive, even over the long run.
Not every European market is doing equally well
What also stands out in the report is how unevenly Europe is performing. Portugal and Ireland outperformed expectations in 2025, partly thanks to strong labour markets. Sweden and the United Kingdom lagged behind.
Other countries have their own challenges. In Germany, high construction and energy costs are weighing on new builds. In the Netherlands, a mix of scarcity and costs is pressuring the market. In France, political uncertainty is making buyers hesitant.
Spain has those problems to a much lesser extent, and you can see that in the numbers.
Why do prices in Spain keep rising?
There are a few structural reasons why the Spanish market is so resilient.
Strong demand for housing
Not only because more people are moving in, but also because households are shrinking. More people live alone or as a couple. Add to that remote work, which has freed people to choose where they live, and many are deliberately moving to places with a better quality of life.
Limited supply
Too few new homes are being delivered, due to regulation, construction labour shortages and rising costs. That keeps upward pressure on prices.
Reinvested equity
Many homeowners have built significant equity over the past few years. That capital is being reinvested into real estate, keeping the market active.
What about interest rates?
One caveat here. Mortgage rates barely dropped in 2025, and S&P expects little room for major rate cuts in the coming years either. That makes solid financial preparation more important than ever. Whoever buys now with a clear plan stands stronger than whoever waits.
Is Spain overvalued?
Not really. Compared to the 2021–2022 peak, European markets have generally become less overvalued. Portugal and Switzerland currently top the list of overheated markets. France and Belgium are relatively cheap.
Spain sits in a balanced position: strong demand, no excessive overvaluation. That makes it attractive for the long term.
What does this mean for you?
Whether you're looking for a second home, planning to move to the sun, or purely focused on return on investment, the message is clear: the Spanish market offers a serious opportunity right now.
Growth continues, supply stays tight, and those who get in early have an advantage over those who wait years longer. Prices will keep rising faster than average income growth over the coming years. That makes waiting increasingly expensive.
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