The major surge of housing prices in Spain

The Spanish real estate market showed a sharp rise in prices at the beginning of 2026. In January, the cost of second-hand housing rose by an average of 20.4% compared to the same month last year, reaching a new historic high of €2,897 per square metre. This is the highest January increase in the last 20 years, according to data from Fotocasa.

As a result, the average 80-square-metre flat now costs around €231,700. A year ago, its price was just over €192,000. In 12 months, housing has risen in price by almost €36,000.

Experts say that this is due to an unprecedented imbalance between supply and demand. Maria Matos, director of research at Fotocasa, notes that demand for housing remains at record highs, and there is a shortage of new housing.

The price increase has affected all 17 regions of Spain. The sharpest surge was recorded in the Murcia region, where prices rose by 27.1%. Next comes Andalusia with a 24.5% increase and the Valencian Community, where housing prices rose by 23.8%. The most expensive square metres are still in the Balearic Islands and Madrid, where prices exceeded €5,000. The most affordable housing is offered in Extremadura and Castile-La Mancha, where the cost per square metre remains around €1,300.

In 48 of the 50 provinces, prices rose in January compared to the same period last year, and in 36 of them, the increase exceeded 15%. The highest growth was recorded in Murcia (27.1%), followed by Valencia (25.9%) and Asturias (23.3%). 

The only provinces where prices fell are Teruel (-10.7%) and Zamora (-4.2%). The four provinces with the highest prices were the Balearic Islands with €5,293 per square metre, Madrid (€5,225), Malaga (€4,444) and Gipuzkoa (€4,390). The provinces with the lowest prices per square metre were Jaén (€1,045) and Ciudad Real (€1,039).

The most expensive regional capitals are San Sebastián (€7,156), followed by Madrid (€6,465), Barcelona (€5,362) and Palma de Mallorca (€5,219). The most affordable capital was Zaragoza, where the average price per square metre was €1,415.

Fotocasa's research director, María Matos, expects prices for second-hand homes to continue to rise throughout 2026 and warns that this will make it even more difficult for middle- and low-income families to purchase real estate.