Spain’s housing market is set to remain one of Europe’s strongest performers over the coming years. According to Standard & Poor’s Global Ratings, Spain will record the highest house price growth on the continent in 2027 and 2028, with projected increases of 7.4% and 6.2%, respectively. In 2026, Spain is expected to post the second-highest rise in Europe at 9.1%, behind Portugal’s 10%, with limited new housing supply continuing to fuel price growth.

In Spain’s residential market, the gap between supply and demand has pushed rents more than 40% above pre-pandemic levels, particularly in Madrid and Barcelona, according to the latest DWS Real Estate report. As a result, investors must be increasingly selective. DWS identifies affordable housing developed with local authorities, student accommodation and flex living schemes for short- and medium-term stays as some of the most attractive opportunities in the current market.

As summer approaches, Spain’s coastline is once again attracting luxury buyers. According to Barnes, destinations such as Marbella, Mallorca, the Costa Brava, the Basque Coast and Ibiza are leading a new vision of high-end living. More than just holiday hotspots, these locations combine privacy, security, international connectivity, gastronomy and quality of life – making them some of the country’s most sought-after residential markets.

Concerns about smoking in rental properties are common among landlords – largely due to potential damage and persistent odours. Lawyer José Ramón Zurdo, CEO of Agencia Negociadora del Alquiler, confirms that it is entirely legal to prohibit smoking in a tenancy agreement. However, the clause must be clearly stated and precisely worded – ensuring there is no ambiguity, and it may even apply to specific areas within the property.