Spanish house prices rose 14.3% in the first quarter of 2026

Spain's residential property market maintained strong upward momentum in the first quarter of 2026, with house prices rising 14.3% year-on-year, according to the latest IMIE Mercados Locales report from Tinsa by Accumin. In real terms, once inflation is accounted for, the increase stands at 11.8% — up from 10.7% the previous quarter — with the average price now sitting at approximately €1,987/m².

The quarterly rate also accelerated, with prices rising 3.2% between January and March compared to the final quarter of 2025, reinforcing the market’s continued growth trajectory. Since the market's lowest point in the summer of 2015, house prices have risen by 68%, though they remain 4.5% below the peak values recorded at the height of the 2007 property boom.

Which regions recorded the sharpest increases

Price growth was broad-based but uneven, with the strongest pressure concentrated in economically active regions and high-demand coastal markets. According to the Tinsa report, of the 19 autonomous communities and autonomous cities, 14 recorded year-on-year nominal increases above 10%, compared with 11 the previous quarter. The regions with the highest growth were:

• Comunidad de Madrid: +19.2%
• Comunidad Valenciana: +19.1%
• Castilla-La Mancha: +18.8%
• Canary Islands: +17.8%
• Cantabria: +16.2%
• Región de Murcia: +16%
• Balearic Islands: +15.5%

At the other end of the scale, Extremadura, Ceuta, La Rioja, and Melilla recorded annual growth below 8%.

Four regions have now surpassed their own price peaks from the 2007 boom in nominal terms: the Balearic Islands, the Comunidad de Madrid, Melilla, and — for the first time this quarter — the Canary Islands. At a provincial level, price increases intensified in 40 of Spain's 52 provinces, with the sharpest rises concentrated in Madrid and surrounding areas, the islands, the Mediterranean coast, and the Cantabrian coast.

How affordability is holding up

The national average affordability ratio — the proportion of household income that goes towards mortgage repayments — currently stands at 33.9%, up from 33.3% the previous quarter, signalling increasing pressure on household budgets. Eight provinces now exceed the 35% threshold generally considered the upper limit of reasonable affordability: the Balearic Islands, Málaga, Madrid, Barcelona, Alicante, Vizcaya, Santa Cruz de Tenerife, and Cádiz.

The most acute pressure is in the Balearic Islands, where local residents face an affordability ratio of 54%, followed by Málaga and Madrid, both at 49%. Inland areas and smaller cities continue to offer considerably more purchasing power, reinforcing the growing divide between prime and secondary markets.

What could shape prices in the months ahead

Cristina Arias, director of research at Tinsa by Accumin, notes that employment showed renewed resilience in March after appearing to lose momentum earlier in the year, helping to sustain household finances. She cautions, however, that the conflict in the Middle East has begun to affect the general price level and the cost of borrowing — a trend reflected in Tinsa's monthly data for March 2026, which confirmed a year-on-year increase of 14.7%.

The Tinsa report identifies competing pressures on demand in the coming months. On one side, economic uncertainty, potential loss of purchasing power, and higher mortgage costs could act as a brake on activity. On the other, property's established role as a hedge against inflation may continue to attract buyers seeking a stable asset.

Spain's structural supply shortage — a persistent gap between the number of homes available and the level of demand — continues to underpin prices across most of the country. For those assessing their next steps, our guide to buying property in Spain covers all the costs and considerations involved.