Property News from Spain

Spain’s housing market continues to significantly outperform the rest of Europe, with house prices rising at more than double the euro area average, according to the latest official figures from Eurostat. The data confirms that price pressure in Spain remains strong as demand continues to exceed available supply in many regions.

Eurostat’s latest House Price Index (HPI) shows that Spanish house prices increased by 12.8% year-on-year, compared with an average rise of 5.1% across the euro area. This positions Spain among the fastest-growing housing markets in the European Union and reinforces a trend that has been gaining momentum over recent quarters.

Spain compared with other European markets

While house prices continue to rise across much of Europe, Spain has moved into a notably higher-growth phase. The gap between Spanish price growth and the euro area average highlights how differently Spain’s housing market is behaving compared to many neighbouring countries. In many countries, price increases have stabilised, whereas Spain continues to experience upward pressure due to supply constraints and planning limitations. According to Eurostat data:

• France recorded annual house price growth of around 1.8%, reflecting a largely stabilised market.
• Germany saw prices increase by approximately 2.6%, following a period of correction.
• Italy posted more modest growth of roughly 3.4%, remaining below the EU average.
• Portugal, by contrast, continues to show strong momentum, with prices rising by around 10.3%, though still below Spain’s pace.

What is driving price growth in Spain?

Eurostat data and market analysis point to several structural factors behind Spain’s sharper price increases:

• Limited housing supply and slow new construction, particularly in high-demand coastal and urban areas, an issue that BBVA Research already highlighted in its latest market forecast report.
• Strong employment and population growth, supporting domestic demand.
• Sustained international buyer interest, especially in lifestyle-driven regions.

These dynamics are having a more pronounced effect in Spain than in many neighbouring countries, where supply conditions and demographic pressures are less acute.

Why this matters

With house prices in Spain rising well ahead of the European average, affordability pressures are becoming more pronounced for domestic buyers. At the same time, Spain’s relative price momentum and long-term fundamentals continue to attract international interest.

Read more at thinkSPAIN.com

For the hundreds of thousands of British expats who call Spain home, the "bridge" across the Bay of Biscay is more than just a flight path—it’s a lifeline. Whether it’s a spontaneous trip for a family milestone or a necessary commute for business, the ease of that journey defines the expat experience.

As we move into 2026, a series of major airline expansions and infrastructure shifts are coming together to make that bridge stronger, faster, and more accessible than ever before.

The Great Jet2 Expansion: Gatwick Becomes a Hub for Spain

The biggest headline for the 2026 season is undoubtedly Jet2’s massive investment in London Gatwick. Launching in March 2026, Gatwick will serve as the airline's 14th UK base, bringing a staggering 29 routes to the table. For those living in the Spanish sun, this means 11 different airports will now have direct, high-frequency links to London’s second-busiest hub.

• The Mallorca Advantage: Palma will see up to ten flights per week to Gatwick, making "weekend trips" to the UK a realistic reality for island residents.

• Canary Island Connectivity: Tenerife, Fuerteventura, Gran Canaria, and Lanzarote are all gaining multiple weekly slots, ensuring the islands aren’t left isolated.

• Mainland Access: Key coastal hubs like Alicante and Málaga will benefit from five and four weekly flights respectively, while regional gems like Girona and Reus are also included in the rollout.

Regional Links: Beyond the Major Hubs

While London often gets the most attention, 2026 is also the year of the "regional reach." Airlines are recognizing that many expats don't live near Madrid or Barcelona, and their families in the UK don't all live in London.

• Scotland to the Basque Country: A standout new route from British Airways Cityflyer will connect San Sebastián directly to Glasgow. Running from July to September, this twice-weekly service offers a rare and vital link for those in Northern Spain.

• The North of England: Ryanair is set to launch a new Manchester-to-Castellón route in June, opening up the "Orange Blossom Coast" to the UK's northern powerhouse.

• Luton’s Urban Surge: Wizz Air is pivoting toward city-dwellers, adding flights from London Luton to Seville, Bilbao, Valencia, and the traditional giants of Madrid and Barcelona starting in March.

Digital Borders: The Shift to Biometrics

It isn't just about where you can fly, but how you get through the airport. By April 2026, the EU’s Entry/Exit System (EES) is expected to be fully operational across major Spanish airports like Barajas and Málaga.

While the initial transition has seen some "bedding-in" pains, the end goal is a smoother journey. The system replaces manual passport stamping with a quick biometric scan (facial and fingerprint). Once your data is in the system, future crossings are designed to be significantly faster, reducing the long queues that have occasionally plagued post-Brexit travel.

The "Grace Period" for ETIAS

One potential cloud on the horizon for 2026 was the introduction of the ETIAS (the €7 pre-travel authorization). However, current timelines suggest a "soft launch" in late 2026 with a generous grace period. This means that for the vast majority of your 2026 travels, you can continue to fly using your passport alone, without the need for additional digital permits until at least early 2027.

Conclusion: A Year of Flexibility

With increased competition from low-cost giants and the opening of new bases like Gatwick, the outlook for 2026 is one of choice. More flight days, more regional airports, and the gradual automation of border controls mean that for expats, the distance between their two "homes" is feeling shorter than ever.

According to the Spanish Government, you need precisely €28,800 a year to retire in Spain. If you retire with your partner, you will need €36,000. That means a couple retiring in Spain would need €3,000 a month to live off. Let’s see how we reach these figures and whether it is a requirement for everyone.

How is this amount calculated?

The Spanish government ascertains whether you have enough funds to live in Spain by applying the IPREM (Indicador Público de Renta de Efectos Múltiples) indicator. This indicator establishes the minimum income for an individual per year. However, this is the absolute minimum which is also used to calculate state benefits and amongst other things Visa eligibility.

What is the current IPREM?

The current IPREM value for 2026 is €600 a month. For those who are not EU citizens and wish to apply for a Non-Lucrative visa, this will be the indicator that measures your income eligibility. You will be required to provide proof of income for 400% of the IPREM value which equates to €28,800 a year plus €7,200 (100% IPREM) for each additional family member. Normally,if you are an EU citizen, you will only be required to provide proof of income for 100% of the IPREM value. However, this can change depending on the autonomous region you are living in.

Can you live off 100% IPREM - €7,200 a year (January 2026)?

The short answer is No. As much as it is a basic requirement for EU citizens, all cost-of-living assessments would show that it is not enough to live off. A much better guide would be the requirement for non-EU citizens: 400% IPREM or €2,400 a month per person, but then you will need to add an extra €600 for your partner. This falls much more in line with independent cost-of-living assessments.

What is the average spending of a household in Spain?

As a guideline, the National Institute of Statistics published that in 2024 the average household spent €2,837 on all costs each month (including accommodation). This is not far off the government requirement of €3,000 for a retired couple. However, this does contemplate housing costs. If you are a cash buyer and don’t need to contemplate property payments, you could realistically live on less than €2,100 a month. But it will depend on your spending habits.

Here are some average cost-of-living assessments created by Numbeo the world’s largest real-life cost-of-living database generated with crowdsourced data.

Read more at thinkSPAIN.com

The Spanish property market is entering a decisive phase of maturity. Following a period of accelerated growth and remarkable resilience throughout 2024 and 2025, the outlook for 2026 is defined by sustained value appreciation, a chronic supply deficit, and a distinctive flight to quality.

For international buyers—whether seeking the ideal lifestyle home or a high-yield asset—2026 offers a landscape of opportunity, provided one navigates the regional variations strategically. As the "frenzy" of the post-pandemic boom settles into a more stable rhythm, the market is shifting from a seller's market to a strategic market, where knowledge and timing are everything.

The 2026 market forecast: Key indicators

While transaction volumes are expected to stabilise after the post-pandemic boom, property prices are forecast to continue their upward trajectory. The consensus among major financial analysts is that the housing deficit—where household creation outpaces construction—will keep prices buoyant throughout 2026.

Here is the data-driven outlook for the year ahead:

• Home prices (YoY Growth): BBVA Research forecasts a rise of 7% in 2026. This growth is driven primarily by the lack of available stock rather than speculative buying. The persistent mismatch between supply (new homes) and demand (new households) ensures strong capital appreciation for owners.
• Sales volume: Activity is expected to stabilise. BBVA Research projects a slight consolidation (-0.3%) compared to 2025 levels, reflecting a market that is normalising after historic highs.
• Interest rates: The market anticipates a stabilising Euribor (12-month), which is forecast to hover near 2.0% - 2.5% as inflation converges with European targets. This reduction from previous highs will improve affordability for mortgage buyers.
• Prime coastal performance: Demand in key expatriate hubs is expected to outperform the national average, with price growth in prime locations projected at +5% to +9%.

The supply reality: Scarcity

Unlike previous cycles driven by easy credit, the price increases projected for 2026 are driven by fundamentals: Scarcity.

Spain is currently facing an accumulated housing deficit. New build completions are lagging significantly behind the rate of new household formation. BBVA Research highlights that while construction starts may increase by 12% in 2026, this is still insufficient to meet the accumulated demand.

• For investors: This structural shortage provides a "safety net" for capital values. Well-located assets are highly unlikely to depreciate.
• For buyers: The "wait and see" strategy carries significant risk. With inventory tight, hesitation often means losing out to a more decisive buyer or facing a higher price tag six months later.

Regional hotspots in Spain: Where to buy

While national statistics predict moderate growth, Spain is a "multi-speed" market. Strategic buyers should focus on these five distinct market segments, each offering a different risk/reward profile.

Read more at thinkSPAIN.com

Spain is a sought-after destination for property buyers worldwide, renowned for its beautiful landscapes, rich culture, and pleasant climate. Whether you're searching for a holiday home, an investment opportunity, or a permanent residence, the Spanish property market offers a variety of affordable options. This article explores the cheapest places to buy property, highlighting coastal areas, towns, and regions where you can find excellent value for your money.

Key considerations when buying cheap property in Spain

When searching for affordable property in Spain, consider these factors to ensure a wise investment:

• Location: Proximity to amenities, transport links, and the overall appeal of the area are crucial. Ensure the location meets your lifestyle needs and offers potential for future growth.
• Property condition: Affordable properties may require renovation, so include these costs in your budget. Conduct thorough inspections to avoid unexpected expenses.
• Legal aspects: Ensure the property has all necessary legal documentation and is free from outstanding debts or legal issues. Engage a local lawyer to navigate the legal complexities.
• Market trends: Research local property market trends to understand potential future value and rental income opportunities. Stay informed about regional economic developments and infrastructure projects that could affect property values.

Check our articles, useful information, and guides on Buying in Spain. 

The most affordable regions to buy property in Spain

Despite recent increases, house prices in Spain remain below the European average, offering numerous opportunities for buyers. Prices vary significantly due to increasing demand. According to the Spanish Ministry of Transport and Sustainable Mobility, the most affordable regions in the third quarter of 2025 are in central Spain, excluding Madrid. Extremadura leads with the lowest prices, followed by Castile-La Mancha and Castile and Leon. Murcia offers the most attractive prices among coastal areas.

Inland areas of Spain, particularly the "Meseta", have the lowest average property prices per square metre. Provinces such as Jaen in inland Andalusia, Teruel in Aragon, and León and Ávila in Castille and Leon also rank among the most affordable destinations for property buyers.

Read more at thinkSPAIN.com

Deciding whether 2026 is a good time to buy property in Spain is less about predicting the market and more about understanding how current conditions align with your personal goals. In 2026, buyers are assessing affordability, supply constraints, and mortgage conditions in a market where price growth is widely expected to moderate rather than reverse.

Property markets are influenced by many factors at once — interest rates, supply and demand, buyer behaviour, regulation, and broader economic trends — and these do not affect every area of Spain in the same way. This applies both to Spanish nationals buying for a main home and to international buyers, as local conditions and financing access can shape what represents “good value” in 2026.

Unlike financial markets, property markets move slowly and are shaped by long-term forces rather than short-term events. This is particularly true in Spain, where regional differences play a significant role in pricing, demand, and future potential. What may be a favourable moment in one city or coastal area may be far less attractive in another.

This guide explores the Spanish property market outlook for 2026 and explains how different types of buyers should approach their decision, focusing on practical considerations that help you decide whether now is the right moment for you.

What is shaping the Spanish property market as 2026 approaches

Spain’s property market has shown notable resilience in recent years, even against a backdrop of higher interest rates, inflationary pressure, and global economic uncertainty. As the market moves into 2026, price growth has moderated in some areas, but demand remains strong in locations that attract long-term residents, retirees, and rental tenants.

Several structural factors continue to support the market in 2026:

• Spain remains one of Europe’s most attractive countries for lifestyle, relocation, and long-term residence.
• New housing supply is limited in many urban and coastal areas due to planning restrictions and land availability.
• Rental demand remains high in major cities and popular coastal locations, driven by both domestic households and international residents.

These factors help explain why prices have remained relatively stable in many parts of Spain, even as other European markets have cooled. In addition, Spain’s appeal is not purely financial. Climate, healthcare provision, and infrastructure continue to underpin demand from both Spanish nationals and buyers relocating from elsewhere in Europe.

Read more at thinkSPAIN.com

Spain’s status as a premier destination for quality of life has received definitive international validation. The Time Out "Happiest Cities in the World 2025" survey, which polls thousands of residents worldwide, has confirmed that Spain is Europe's lifestyle leader, with Seville and Valencia both ranking highly on the global Top 20 list.

This news is a powerful signal for expatriates and property investors. When citizens report the highest levels of daily satisfaction, it confirms the long-term, non-financial value of living and owning property in these locations.

Spain leads Europe's happiness rankings

The 2025 results show Spain dominating the continent, confirming that the Spanish rhythm of life delivers unparalleled joy and community. Seville led the continent at #1 (and #9 globally), while Valencia secured #4 in Europe (and #19 globally).

Critically, Spain placed four cities in the European Top 10 for happiness, demonstrating that the nation's exceptional quality of life is a nationwide phenomenon, not limited to a single metropolis. Bilbao ranked at #7 and Madrid at #10.

A Consistent trend: The long-term value of lifestyle

This ranking is not a one-off event. Spain's coastal and southern cities have consistently been chosen by global residents for their superior quality of life, confirming a sustainable, long-term trend for investment:

• Global Expat Champion: In the 2024 InterNations Expat City Ranking, Spain swept the top three spots, with Valencia ranked #1 globally and Málaga ranked #2.
• Executive confidence: More recently, Spain placed three cities in the global top 10 of the Savills "Executive Nomad Index 2025," targeting high-net-worth mobile executives who prioritise stability and lifestyle.

When multiple, independent reports—from expat surveys to happiness indices—all validate the same cities, it assures the property investor that demand for these locations will remain perpetually high.

Why Valencia and Seville win

The success of these two vibrant cities, while culturally distinct, is rooted in mastering the perfect work-life balance—a key attraction for foreigners, remote workers, and expat retirees alike.

Seville: The Andalusian heart of happiness

Seville's top ranking comes from its powerful sense of Culture and Community. Known for its intense, authentic Andalusian culture, spontaneous street life, and highly sociable atmosphere, the city offers residents a sense of "joy in the everyday." The famously relaxed pace allows residents to linger over tapas and stroll along the Guadalquivir River without feeling the stress of larger metropolitan areas. For expats, this compact, walkable city centre offers a deep cultural immersion, excellent safety, and warm, welcoming people—qualities that are highly prized for long-term relocation.

Read more at thinkSPAIN.com

Spain is a sought-after destination for property buyers worldwide, renowned for its beautiful landscapes, rich culture, and pleasant climate. Whether you're searching for a holiday home, an investment opportunity, or a permanent residence, the Spanish property market offers a variety of affordable options. This article explores the cheapest places to buy property, highlighting coastal areas, towns, and regions where you can find excellent value for your money.

Key considerations when buying cheap property in Spain

When searching for affordable property in Spain, consider these factors to ensure a wise investment:

• Location: Proximity to amenities, transport links, and the overall appeal of the area are crucial. Ensure the location meets your lifestyle needs and offers potential for future growth.
• Property condition: Affordable properties may require renovation, so include these costs in your budget. Conduct thorough inspections to avoid unexpected expenses.
• Legal aspects: Ensure the property has all necessary legal documentation and is free from outstanding debts or legal issues. Engage a local lawyer to navigate the legal complexities.
• Market trends: Research local property market trends to understand potential future value and rental income opportunities. Stay informed about regional economic developments and infrastructure projects that could affect property values.

Check our articles, useful information, and guides on Buying in Spain. 

The most affordable regions to buy property in Spain

Despite recent increases, house prices in Spain remain below the European average, offering numerous opportunities for buyers. Prices vary significantly due to increasing demand. According to the Spanish Ministry of Transport and Sustainable Mobility, the most affordable regions in the third quarter of 2025 are in central Spain, excluding Madrid. Extremadura leads with the lowest prices, followed by Castile-La Mancha and Castile and Leon. Murcia offers the most attractive prices among coastal areas.

Inland areas of Spain, particularly the "Meseta", have the lowest average property prices per square metre. Provinces such as Jaen in inland Andalusia, Teruel in Aragon, and León and Ávila in Castille and Leon also rank among the most affordable destinations for property buyers....

Read more at thinkSPAIN.com

A new report from BBVA Research confirms the core reality of the Spanish property market: sales volumes are slowing due to a chronic lack of supply, but this same scarcity is forcing prices into a new phase of strong appreciation. The bank’s highly current "Real Estate Observatory" (November 2025) projects that while the overall number of transactions will stagnate in 2026 - forecasting a negligible -0.3% change - national housing prices are secured for another year of significant growth, projected to climb by 7.0% in 2026. This trend provides exceptional security for long-term investors: your asset value is insulated from any market fluctuation by an unstoppable structural deficit.

Structural deficit & price growth in Spain

The reason behind this price acceleration is simple and structural: Spain cannot build fast enough to meet demand generated by strong employment, migration, and the appeal of buying over increasingly expensive renting.

The BBVA data confirms the severity of this fundamental imbalance:

• Cumulative housing deficit: Between 2021 and 2025, Spain accumulated a housing deficit of approximately 625,000 households whose housing needs were unmet by new construction.
• Price resilience: Despite the sharp nominal price rises, the price remains 30% below the 2007 bubble peak in real terms, confirming market recovery, not a speculative boom.
• Accelerating prices: This deficit drove prices up by a confirmed 9.7% in the first half of 2025, a momentum BBVA forecasts will lead to a 10.1% rise for the full year. This sharp growth sets the foundation for the stable 7.0% appreciation expected in 2026.

Sales slowing down is viewed as healthy

The projected stagnation in sales for 2026 is actually a positive signal for the market's long-term health. It is not a sign of collapsing demand, but rather a confirmation that:

• Supply is exhausted: The market has simply run out of available inventory, especially quality, affordable stock in high-demand areas.
• Marginal demand is culled: The steep rise in prices means that marginal buyers, often those highly sensitive to mortgage rates and dependent on full financing, are being priced out. This culls speculative demand and leaves the market in the hands of secure, long-term investors.

Read more at thinkSPAIN.com

As anyone who has already done it will tell you, spending your retirement in Spain offers plenty of benefits in terms of physical and mental health, and general wellbeing. You may also find doing so comes with financial benefits too, depending upon where you are moving from.

Spain remains one of the most popular destinations for those seeking a change of scenery once their working lives end and they can enjoy endless free time at last – but what makes it so sought-after?

Here are some of the features of Spain that lead thousands of new pensioners to set up home here every year:

Climate

One of the key reasons for choosing a retirement in Spain is the climate, particularly on the islands, in the south and on the Mediterranean. On average, year-round temperatures are higher than in central and northern Europe, winter daylight hours are longer, and sunshine is abundant. In fact, even when the weather is cool, it is often still sunny, meaning a constant and free source of vitamin D – essential for bone and immune system health.

Some new pensioners considering moving to Spain may have concerns that it could, in reality, be too hot. Whilst it is true that the main summer months, from approximately June to September, can be extremely hot with temperatures well above 30ºC and high humidity, this is not the case all year round. Winters normally require a coat, but biting cold is rare at sea-level, and spring and autumn are mild, without being hot.

Much of Spain is at an altitude, given that it is the second-most mountainous country in Europe after Switzerland, meaning cold weather and even snow are possible in inland areas. Here, most homes are built with central heating as standard, and older properties frequently have wood-burning stoves and chimneys. On the coasts and islands, though, very little winter heating is needed, and air-conditioning units double up as heaters for those few weeks a year when it is.

All this means your winter heating costs are likely to be much lower than in central or northern Europe, but you may need to use your air-conditioning a lot in summer.

Lifestyle and culture

Thanks to the mild weather in spring, autumn and winter, life in Spain takes place outdoors far more than in colder countries. The benefits of this are obvious: Fresh air, vitamin D, and greater contact with other people, helping to combat isolation. Also, it means you can always find 'something to do' that doesn't have to cost money: In colder climates, wanting to get out of the house and enjoy a 'change of scenery' normally involves finding an indoor pursuit, such as shopping. In most of Spain and for most of the year, you can simply sit in a pavement café and watch the world go by, or go out for a walk on the beach, in the countryside or around town.

Despite common misconceptions, the pace of life in Spain is not necessarily slower, more relaxed, or less hassle than in any other first-world country – but it is much easier, in Spain, to simply 'be' rather than 'do'.

It's actually hard to get bored in Spain, because there's always something happening and a lot of it costs little or nothing. Nearly every town celebrates its patron saint fiestas once a year, which go on for several days and include vibrant, colourful processions, live music, street theatre, concerts, fêtes, and themed markets. Fiestas also take place during other key dates such as Easter or on the 'regional day' for wherever you live. In between these, craft markets, shopping and trade fairs, and open-air music shows are frequent, especially in summer, providing a constant backdrop of entertainment that anyone can enjoy. Spain has a very strong arts and culture scene, with almost all children learning to play at least one musical instrument at school, and its outdoor lifestyle means all ages of Spaniards get heavily involved in sports. Even if you're not keen on or able to take part in them yourself, public sporting events are a regular feature of Spanish life, and a great source of spectator entertainment.

Food: Eating out and grocery shopping

Much of the day-to-day culture in Spain revolves around food. The country holds the record for the highest number of bars and restaurants per inhabitant in the world, meaning wherever you are, there'll be somewhere to stop for a coffee, a cool drink or a snack within a few paces. Eating out is not necessarily considered a luxury in Spain – it can be, and the high number of Michelin-starred restaurants nationwide is testimony to that – but it can also simply be an alternative to cooking at home.

Spain remains one of the most affordable countries in the developed world for eating and drinking outside the home, and its cuisine is so widely varied that you may find completely different dishes even between neighbouring towns. All regions have vastly different 'traditional' recipes – to such an extent that many Spaniards are surprised by the food when they travel elsewhere in their own country.

Read more at thinkSPAIN.com