The real estate market in Spain continued to perform strongly in the third quarter of 2026. Prices for both new-build and existing homes are now 14.7% higher than a year ago, with the average property value in Spain reaching €2,129 per m².
The pace of price growth is beginning to ease slightly, but there is currently no sign of a reversal in the market. Growth remains strong across most of Spain, with many popular regions still recording double-digit annual increases. The Valencian Community, which includes Valencia and the Costa Blanca, once again stands out.
For anyone considering buying a property in Spain, these developments remain interesting. Demand continues to be high, while the supply of homes in many sought-after locations remains limited. In this analysis, we look at where prices are rising the fastest and what the latest figures mean for buyers.
General situation of the real estate market Spain 2026 Q3
The average property value in Spain increased by 14.7% year-on-year and 2.8% compared with the previous quarter. Adjusted for inflation, annual price growth still stands at 10.2%. Growth has therefore slowed slightly compared with earlier this year, but remains considerable. Tinsa describes this as a moderation in the pace of growth rather than a decline in property prices.
It is also interesting to compare current prices with Spain’s previous property market peak. In nominal terms, the average property value is now 2% above its 2007 level. However, when inflation is taken into account, prices are still 32% below that previous peak. Today’s price levels are therefore not directly comparable with those seen just before the financial crisis.
In the first half of 2026, the number of property transactions fell by 7.7% according to Spanish notaries and by 2.6% according to the INE. Nevertheless, Tinsa emphasises that transaction levels remain robust and above the historical average. At the same time, limited housing supply continues to be an important factor behind price growth. There are signs that construction activity is picking up, but supply is still insufficient to fully meet demand. The imbalance between supply and demand remains particularly noticeable in major economic centres and popular tourist areas. Rising construction costs are also adding further pressure to new-build prices.
For buyers, this means that although the market is growing at a slightly slower pace than earlier this year, the current figures give little indication of a widespread fall in property prices. Prices in many of Spain’s most popular regions continue to rise steadily.
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Property prices in Spain by autonomous region
Property price growth remains widespread across Spain. In 14 of Spain’s 19 autonomous regions and cities, prices increased by more than 10% compared with a year earlier. In the previous quarter, this was the case in 13 regions.
Looking specifically at the regions most relevant to our buyers, the latest figures are:
- Valencian Community: +21.9%, €1,898 per m²
- Region of Murcia: +14.8%, €1,380 per m²
- Balearic Islands: +14.3%, €3,885 per m²
- Madrid: +13.1%, €3,693 per m²
- Catalonia: +12.6%, €2,614 per m²
- Andalusia: +10.8%, €1,789 per m²
The Valencian Community, which includes Valencia and the Costa Blanca, once again stands out. Property prices increased by 21.9% year-on-year, making it the fastest-growing autonomous region in Spain. Prices also rose by a further 5.6% compared with the second quarter.
The Region of Murcia, home to the Costa Cálida, also recorded strong annual growth of 14.8%. Andalusia, which includes popular areas such as the Costa del Sol and Costa de Almería, recorded an increase of 10.8%.
The Balearic Islands reached an average of €3,885 per m², with annual growth of 14.3%. These figures apply to the island group as a whole, including Mallorca and Ibiza. This means the Balearics combine continued price growth with one of the highest property price levels in Spain.
There are still significant differences between regions. Madrid now averages €3,693 per m² and Catalonia €2,614 per m², compared with €1,898 per m² in the Valencian Community and €1,380 per m² in Murcia. These figures demonstrate that strong price growth does not necessarily mean that a region is among Spain’s most expensive property markets.
Property prices in Spain by province
Price growth also remains widespread at provincial level. In 35 of Spain’s 52 provinces, property prices are now more than 10% higher than a year ago, compared with 34 provinces in the previous quarter. Tinsa does, however, see signs that the pace of growth is beginning to moderate in an increasing number of provinces.
In the areas most relevant to our buyers, the figures are:
- Valencia: +23.8%, €1,970 per m²
- Alicante, Costa Blanca: +18.1%, €2,050 per m²
- Murcia, Costa Cálida: +14.8%, €1,380 per m²
- Málaga, Costa del Sol: +14.0%, €2,784 per m²
- Tarragona, Costa Dorada: +12.3%, €1,874 per m²
- Almería, Costa de Almería: +5.0%, €1,418 per m²
- Balearic Islands, including Mallorca and Ibiza: +14.3%, €3,885 per m²
Valencia once again stands out. The province recorded annual price growth of no less than 23.8%, placing it among the three fastest-growing provinces in Spain. Prices also rose by 6.1% in just one quarter.
The Costa Blanca continues to perform strongly too. In the province of Alicante, property prices increased by 18.1% to an average of €2,050 per m². Of course, this average does not tell the whole story. Prices can be considerably higher in popular coastal locations.
On the Costa del Sol, prices in Málaga province increased by 14.0% to an average of €2,784 per m². Málaga is now one of the more expensive provinces in Spain, although average prices remain higher in the Balearic Islands, Madrid and Barcelona.
The Costa Cálida also continues to show strong growth. Prices in Murcia are 14.8% higher than a year ago, while its average price of €1,380 per m² remains considerably below the levels seen in Alicante and Málaga.
On the Costa Dorada, prices in Tarragona increased by 12.3% to €1,874 per m². The Costa de Almería saw a more moderate development this quarter, with prices in Almería province increasing by 5.0% to an average of €1,418 per m².
The Balearic Islands, particularly relevant to buyers considering Mallorca or Ibiza, stand out for their high price level. At an average of €3,885 per m², they are the most expensive province in Spain. At the same time, prices have risen by a further 14.3% over the past year.
These figures underline just how much Spain’s property market can differ from one area to another. From strong growth in Valencia and Alicante to the high price levels of the Balearic Islands and the comparatively lower entry prices in Murcia and Almería, there is no single Spanish property market.
Real Estate Prices in the Major Cities of Spain
Property prices also continue to rise in Spain’s major cities. In 39 of the 52 provincial capitals, prices are now more than 10% higher than a year ago. In the previous quarter, this was the case in 33 cities. However, the pace of growth is beginning to ease in many cities.
For comparison, Madrid, Barcelona, Málaga and Valencia are particularly interesting:
- Madrid: €4,765 per m², +12.9%
- Barcelona: €4,616 per m², +10.8%
- Málaga: €3,003 per m², +13.8%
- Valencia: €2,849 per m², +14.2%
Madrid and Barcelona remain by far the most expensive of these four major cities. The average property value in Madrid has now reached €4,765 per m², compared with €4,616 per m² in Barcelona. Price growth in Madrid is beginning to moderate, while Barcelona recorded slightly stronger growth than in the previous quarter.
Málaga is also becoming increasingly expensive. The city passed the €3,000 mark this quarter, reaching an average of €3,003 per m² after annual growth of 13.8%.
At an average of €2,849 per m², Valencia city remains considerably more affordable. At the same time, prices increased by 14.2% year-on-year, a stronger rate of growth than in Madrid, Barcelona and Málaga. This makes Valencia particularly interesting: the city is showing strong price growth while average property values remain significantly below those of Madrid and Barcelona.
It is important to remember that these are average figures. In practice, prices within each city can vary considerably depending on the neighbourhood, type of property and its condition. High-quality, move-in-ready properties in sought-after locations will often command a considerably higher price per square metre.
Conclusion Real Estate Market Spain 2026 Q3
The third quarter of 2026 shows that the Spanish property market is gradually moving at a slightly more moderate pace, while continuing to perform strongly. Annual price growth of 14.7% remains substantial, and an increasing number of provinces and cities are recording double-digit growth.
The development is particularly interesting in the areas where we operate. The Valencian Community is the fastest-growing autonomous region in Spain, with annual growth of 21.9%. Valencia province recorded growth of 23.8%, while Alicante, home to the Costa Blanca, increased by 18.1%. The Costa del Sol and Costa Cálida also continue to record double-digit growth. At the same time, price levels vary considerably. Buyers looking at Madrid, Barcelona, Málaga, Valencia, the Costa Blanca, Costa Cálida or Costa de Almería are entering very different property markets. This gives buyers the opportunity to look beyond current market trends and focus on the area that best matches their budget, requirements and plans for the property.
For anyone who has been considering buying a property in Spain for some time, the Q3 figures provide little reason to assume that good properties in popular locations will automatically become cheaper in the near future. Being well prepared is therefore increasingly important. Make sure you have a clear budget, that any required financing is feasible or already arranged, and that you know what you are looking for before starting your viewings. This puts you in a position to act when the right property comes along.
Source: TINSA
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