Living, market data - Figures first quarter 2026 Spain

The residential market in Spain has started 2026 with continued strong momentum, though it is marked by a growing imbalance between supply and demand that continues to put pressure on prices and affordability. Housing has become the public’s primary concern, in a context where the creation of new households far outpaces the development of new housing supply, intensifying pressure in major urban markets.

 

In 2025, the housing market closed with positive results. Housing transactions reached 752,000 homes, 5% more than the previous year, driven largely by international demand, which hit record highs. At the same time, home prices rose by 12.9% year-over-year—the largest increase since 2007—with particularly strong growth in the resale market.

 

This context is compounded by stricter financial conditions, although the mortgage market is clearly recovering, having grown by 18% year-over-year to its highest levels since 2010. As a result, the financial burden of homeownership remains high, standing at 35.5% nationwide, which is accelerating the shift in demand toward renting.

 

In this regard, the rental market continues to gain prominence. Rents recorded year-over-year growth of nearly 8% nationwide in the first quarter of 2026, albeit at a more moderate pace than in previous years. The proportion of households in the rental market stands at 26.7% and is expected to continue rising to 29% by 2030, reflecting a structural shift in residential dynamics.

 

Living remains the top asset class for investment in Spain

 

From an investor’s perspective, the Living sector has established itself as the main driver of the real estate market in Spain at the start of 2026. During the first quarter, investment reached 2.3 billion euros, representing a 98% year-over-year increase and accounting for 36% of the total volume invested in real estate. This start to the year already accounts for 42% of the total invested in Living throughout 2025, highlighting strong investor appetite for the segment.

 

Multifamily played a clearly dominant role, accounting for 82% of total investment (more than €1.8 billion), driven by both BTR and PRS strategies. Also noteworthy is the growing interest in affordable housing, which accounts for a very significant portion of capital, in response to the market’s structural imbalance.

 

In alternative segments, student housing has attracted over 290 million euros in investment, amid a shortage of supply and high demand. Flex Living, meanwhile, continues to establish itself as a growing sector, with 120 million euros in transactions, primarily in suburban locations and on commercial land. Senior Living maintains a more subdued investment pace, though it is supported by solid long-term demographic fundamentals.

 

Geographically, Madrid accounts for the bulk of activity, with approximately 78% of total investment, reinforcing its position as the primary destination for capital in the Living sector, followed at a distance by Barcelona and Valencia.

 

In terms of returns, prime yields remained stable in the first quarter of the year, standing at 3.8% in Madrid and 4.0% in Barcelona for multifamily assets, in an environment characterized by high investor liquidity, a shortage of quality product, and robust demand.

 

Overall, the Living market in Spain enters 2026 with a solid foundation in terms of demand and investment, though it remains constrained by a structural imbalance that will continue to shape its short- and medium-term trajectory and reinforce the sector’s appeal to institutional capital.