Spain House Prices Hit 21-Year High Amid Supply Shortage
Usagevpn.com – Spain house prices have surged to their highest point in over two decades, with resale properties climbing 17.2% year-on-year during the second quarter of 2026. The Fotocasa Real Estate Index reveals that between April and June, values increased by an additional 4%, pushing the national average to €3,133 per square metre. This marks the fourth time in the first six months of 2026 that Spain house prices have reached record levels, cementing their position at a 21-year peak.
Supply and Demand Imbalance Drives Growth
María Matos, Fotocasa’s head of research, points to a critical mismatch between robust buyer demand and constrained property availability. She notes that limited inventory, favourable financing terms, and demographic pressures across major urban centres are accelerating price growth. As Matos explains, “the result is ever faster price growth that makes it harder to access housing and widens the affordability gap for a large proportion of households.” These findings align with INE statistics, though both organizations employ distinct measurement approaches.
While Fotocasa tracks asking prices from active listings, the National Statistics Institute calculates actual transaction values for completed sales. INE data shows housing costs increased 12.9% annually in Q1 2026, with second-hand homes gaining 13.5%. During the subsequent quarter, price appreciation occurred across 16 autonomous communities nationwide.
Regional performance varied significantly, with the Region of Murcia leading quarterly gains at 8.6%, followed by Cantabria (6.3%), the Valencian Community (5.9%), Castile and León (5.6%), and La Rioja (5.1%). The Canary Islands stood alone with a 0.7% decline. Year-over-year, Murcia again dominated with 28% growth, surpassing Cantabria (20%), the Valencian Community (19.8%), Asturias (17%), and Andalusia (16.9%).
The report notes that “June 2026 ended with 14 autonomous communities posting double-digit year-on-year increases, compared with 11 in 2025, six in 2024 and seven in 2023”. The Balearic Islands and Madrid continue as Spain’s priciest markets for resale properties, averaging €5,441 and €5,410 per square metre. The Basque Country (€3,925), Catalonia (€3,418), and the Canary Islands (€3,374) follow.
At the more affordable end, Extremadura (€1,352), Castile-La Mancha (€1,407), and Castile and León (€1,816) offer lower entry points. Forty-six provinces experienced quarterly growth, with León (10.7%), Palencia (10.2%), and Murcia (8.6%) posting the strongest gains. Only Cuenca, Huelva, Santa Cruz de Tenerife, and Ávila saw price reductions.
Jaén remains the most affordable province at €1,112 per square metre, while Donostia-San Sebastián leads provincial capitals at €7,158 per square metre, ahead of Madrid (€6,630), Barcelona (€5,368), Palma (€5,275), Málaga (€4,320), and Bilbao (€4,157).
At the municipal level, Santa Eulària des Riu in Ibiza tops the national ranking with €8,491 per square metre, followed by Sant Antoni de Portmany (€8,284) and Eivissa (€7,441). Within Madrid, the Salamanca district reaches €10,786 per square metre, while Sarrià-Sant Gervasi leads Barcelona at €7,540 per square metre.
