House prices in Spain surge 12.8%, far outpacing Europe
Friday, January 23, 2026 @ 9:54 PM
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.
Residential buildings in a Spanish city, reflecting ongoing growth in the national housing market. Source: Freepik
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.
House price growth in Spain compared with selected European countries (year-on-year, Q3 2025). Source: Eurostat
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.
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