Strong demand for housing and limited supply are pushing prices up in Spain. According to the Tecnocasa Group Chair – UPF Market Analysis, resale prices rose 15.3% year-on-year in the second half of 2025, reaching €3,338/m² at year-end – comparable to early 2006, at the height of the housing bubble.
In 2025, demand increased by 30% compared with 2024 and by over 70% since 2023, while supply fell by 16% annually. This has created seven potential buyers for every home on the market, double the figure of just two years ago.
“This tense situation around housing access is shrinking the margin for negotiation between buyer and seller to historic lows. At the end of 2025, it stood at 6.2%, similar to 2007,” says Lázaro Cubero, Director of Analysis at Tecnocasa.
The group also warns that the average time to sell a home has risen to 77 days, up from 73 in 2024. “Some transactions are at the price limit, requiring negotiation. This slows the process, so we expect fewer sales in 2026,” Cubero adds.
Housing market: the seller won't budge, and the buyer can't
Looking ahead to 2026, Tecnocasa executives predict that some trends seen in 2025 will not continue. “We’re not expecting price drops, but the pace of increases may slow (…) it’s unusual for prices to rise by double digits in a single year,” says Paolo Boarini, CEO of Tecnocasa.
Professor José García-Montalvo, Chair of Economics at Pompeu Fabra University, compares the current housing market with the boom years. “Looking at real prices, we’re halfway through the cycle seen between 2000 and 2007, around 2003–2004. In terms of price discounts, we are at 2007 levels. For credit quality, we are back at 1999. Banks aren’t offering the same mortgage terms as during the boom.”
This is affecting buyers’ ability to access housing. “From 2026, we expect a shift. Buyers and sellers have different expectations. Sellers are unwilling to budge, while buyers can’t move because mortgages are limited. This tension cannot last. If sellers want to sell, they will have to start making concessions and offering larger discounts,” García-Montalvo explains.
