After Parliament blocked its emergency housing laws, Spain’s Socialist-led government says voters must give it more power to act.

The skyline of Madrid's Salamanca district is set for a transformation with the arrival of Torre Castelló, the area's first major luxury residential tower. The development will rise on the site of the former Ministry of Finance headquarters, between María de Molina, Castelló, General Oráa and Núñez de Balboa streets. The 21-storey building will comprise 158 luxury homes and 5,000 m² of communal amenities, including swimming pools, gyms and a golf simulator. It will also incorporate a student residence with 400 rooms across its first two floors.

The first of two housing decrees approved by Spain's Council of Ministers introduces new restrictions on investment funds purchasing residential property. Until 31 December 2028, such entities will be unable to buy homes for less than 70% of their appraised value, including occupied properties and residential buildings with a certificate of completion. The measure also broadens the definition of a “vulture fund” to include any entity, whether incorporated or not, whose corporate purpose includes the acquisition of real estate.

Marbella has reinforced its position as one of the world's leading luxury property destinations, securing fifth place in the Barnes City Index. The ranking, compiled by the international luxury real estate firm, measures the appeal and influence of the world's top prime residential markets. By placing alongside prestigious destinations such as Monaco, Miami and the French Riviera, Marbella confirms its status as a global player in high-end real estate rather than simply a leading market within Spain.

Metrovacesa has begun construction of Atria F2, a new residential development in La Alcaidesa (Cádiz), backed by an investment of €28.3 million. The project includes two- and three-bedroom flats with spacious terraces and extensive communal facilities. It further strengthens the developer's presence in this area of the western Costa del Sol, where beaches, natural surroundings and some of southern Europe's most renowned golf courses come together.

Neinor Homes has launched Australy Thera, the third phase of its residential development in Estepona. The scheme comprises 42 flats and duplexes with two to four bedrooms and forms part of a wider complex of nearly 200 homes. Located in the Costa del Sol's "golden triangle", the development offers sea views, extensive communal amenities, and easy access to beaches, Puerto Banús and Sotogrande.

With the arrival of summer, many families begin searching for a second home to spend the summer months and escape the heat. However, the excitement of finding the perfect house, the pressure to close the deal during the holidays or the distance to the property can lead to overlooking fundamental aspects that, in the long run, result in costly repairs or difficult-to-resolve problems. The Official College of Quantity Surveyors and Technical Architects of Madrid has identified the five most common mistakes, such as not properly inspecting defects or being unaware of the property's condition.

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.