Spain’s lifestyle continues to attract buyers
Spain’s property market continues to demonstrate remarkable strength in 2026, with house prices reaching new records as buyer demand significantly exceeds the supply of available homes. For those considering moving to Spain, purchasing a holiday home or investing in Spanish real estate, the latest figures provide valuable insight into one of Europe’s most active property markets.
According to the latest data, the average price of second-hand property in Spain increased by 17.4% year-on-year in May 2026. The national average asking price now stands at €3,092 per square metre, representing the third time this year that Spain has reached a new all-time high. Based on an average 80 m² property, the typical home value has risen to approximately €247,391.
Compared to May 2025, when the average value of an 80 m² home stood at €210,777, Spanish property prices have increased by approximately €36,614 in just twelve months.
Why Are Property Prices Rising in Spain?
The primary driver behind rising property prices is the growing imbalance between supply and demand. Buyer demand is currently close to historic highs, while the availability of residential property remains insufficient to satisfy market interest.
At the same time, favourable mortgage conditions over the last year have encouraged more buyers into the market, increasing competition and supporting continued price growth. While some analysts expect the pace of growth to moderate later in the year if borrowing costs rise, the ongoing shortage of available housing is expected to continue influencing prices across the country.
Andalusia Continues to Lead the Market
Among Spain’s regions, Andalusia remains one of the strongest performers. Property prices in the region increased by 18.4% year-on-year, outperforming the national average and reaching a new historic high of €2,970 per square metre.
This growth reflects the continued appeal of southern Spain among both domestic and international buyers seeking sunshine, lifestyle, connectivity and long-term investment potential. Alongside Andalusia, only a handful of Spanish regions are currently achieving record property values.
The Costa del Sol Lifestyle Continues to Drive Demand
While statistics explain part of the market’s performance, lifestyle remains one of the most important reasons buyers continue to choose the Costa del Sol.
The region offers an enviable combination of more than 300 days of sunshine per year, beautiful beaches, championship golf courses, modern healthcare facilities, excellent international schools and direct flight connections to major European cities. For many buyers, purchasing property in Spain is not only a financial decision but also an investment in quality of life.
Remote working trends have further accelerated demand, allowing buyers to relocate permanently to destinations such as Marbella, Estepona, Benahavís, Fuengirola and Mijas while remaining connected to international businesses and markets.
Málaga Becomes One of Spain’s Most Expensive Provinces
The latest report highlights the continued strength of the Costa del Sol property market through the performance of Málaga province.
With an average asking price of €4,680 per square metre, Málaga is now the third most expensive province in Spain, behind only Madrid and the Balearic Islands.
The current ranking of Spain’s most expensive provinces is:
Madrid: €5,414/m²
Balearic Islands: €5,359/m²
Málaga: €4,680/m²
Gipuzkoa: €4,563/m²
This position reflects the continued desirability of the Costa del Sol among international buyers, retirees, second-home owners and investors looking for both lifestyle benefits and long-term capital appreciation.
What This Means for Buyers Moving to Spain
Despite rising prices, Spain continues to offer attractive value compared with many other Western European markets. Buyers are drawn not only by the property itself but also by the country’s climate, healthcare system, culture, gastronomy and outdoor lifestyle.
For those considering a move to southern Spain, the latest figures suggest that demand for quality homes in desirable locations remains exceptionally strong. While future interest rate movements may influence the pace of growth, the shortage of available housing stock continues to support property values.
The latest data confirms that Spain’s property market remains firmly in growth territory. With the national average reaching €3,092/m², average home values climbing to €247,391, Andalusia setting new records at €2,970/m² and Málaga becoming Spain’s third most expensive province at €4,680/m², demand continues to underpin the market.
For buyers looking at property for sale in Spain, particularly along the Costa del Sol, the combination of strong market fundamentals and an exceptional Mediterranean lifestyle continues to make the region one of Europe’s most attractive places to live, invest and relocate.
