Demand pressure on the existing supply of rental housing is becoming increasingly acute in the suburbs of major cities.

While house prices across Spain have soared by nearly 16% over the past year, a surprising number of towns are seeing significant declines.

Foreign buyers remain highly active in Spain’s housing market, with over 70,000 transactions recorded in the first half of 2025 alone, according to the latest notary data.

Legal uncertainty from the Housing Act and the failed Land Act has defined Isabel Rodríguez’s tenure, as she pushes for more public housing and defends rent intervention.

The share of household income needed to rent a property in Spain stands at 36% of the average family’s total net income, while for buying it is significantly lower at 25%, excluding the savings required to secure financing, according to a study by idealista based on data from Q3 2025.

Real estate experts have revised their forecasts for the residential market in Spain. According to Donpiso, home sales are expected to reach around 800,000 transactions by the end of the year, with prices rising by up to 8%. Tecnotramit, meanwhile, projects approximately 750,000 sales and price growth of between 4% and 6%.

Based on data from Spain’s Tax Agency, we’ve analysed the latest prices of second-hand homes for sale in the country’s wealthiest municipalities, using statistics from idealista. Leading the pack once again is Pozuelo de Alarcón (Madrid), with an average gross income of €88,011 per year.

The sale of homes without vacant possession is becoming increasingly common in the Spanish property market, now accounting for 3% of all properties for sale in the country, according to a study by idealista based on listings in its database for Q3 2025.

In 2023, Pozuelo de Alarcón (Madrid) retained its position as the Spanish town with the highest average declared gross income for the fifth consecutive year, reaching €88,011 – a 3.2% increase on 2022.

When planning a move, high-net-worth individuals tend to favour cities over coastal or mountain locations. According to the latest Knight Frank survey, the services and lifestyle offered by European cities are particularly appealing to wealthy movers. Capital cities such as Lisbon and London top the list, with Madrid and Barcelona also featuring in the top five. Beyond urban centres, the Balearic Islands stand out, alongside the Algarve, Tuscany and prime areas of the Alps.