Living, market data - Figures second quarter 2026 Spain

The structural housing deficit in Spain exceeds 750,000 homes, with nearly half of the shortfall concentrated in six provinces that account for a significant share of demographic growth and residential demand. This persistent imbalance between household creation and new housing delivery continues to put upward pressure on prices and constrain housing affordability, particularly in the main urban markets.

The housing market is showing signs of normalisation after several years of strong activity. Transactions over the last twelve months reached 730,000 homes, only 1% below the previous year, remaining at historically high levels supported by international demand. At the same time, development activity continues to recover, with close to 141,000 new housing permits, up 9% year-on-year.

In parallel, house prices continue to record strong upward momentum, increasing by 12.9% year-on-year, the highest growth rate since 2007. The increase is mainly driven by the second-hand housing market, reflecting the persistent shortage of available supply and sustained demand pressure. Meanwhile, the dynamism of the mortgage market, with 10% year-on-year growth and the highest levels since 2011, coexists with an affordability ratio of 36.1%, supporting the continued shift of part of demand towards the rental market.

Rental housing continues to gain relevance within Spain’s residential dynamics. Currently, 26.7% of households live in rental homes and CBRE forecasts indicate that this share will reach 29% by 2030, consolidating a structural trend that will continue to support demand for residential rental product.

Living consolidates its leadership and records the strongest first half for investment on record

The Living sector recorded its strongest first half on record and reaffirmed its position as the leading destination for capital in the Spanish real estate market. In the first six months of the year, the sector reached a record investment volume of €4.6 billion, 156% above the same period of the previous year. This volume represented 38% of total real estate investment transacted in Spain, the highest share ever recorded for the sector.

Madrid remained the main destination for capital, accounting for 74% of total investment, well ahead of Barcelona and Valencia. The combination of solid residential demand, limited supply and high liquidity has reinforced Madrid’s positioning as a priority market for institutional investors.

The Multifamily segment once again led activity, with more than €3.35 billion invested, equivalent to 73% of total Living investment. Activity remained strong across both BTR/PRS strategies and for-sale oriented models (privatisation). In addition, affordable housing continues to gain market share and now represents 33% of Multifamily investment and 24% of total Living investment, supported by both existing social demand and new regulatory initiatives.

Student housing also maintained a high level of investment activity, with €780 million transacted during the first half of the year. Limited product availability and strong interest from both Core and Core+ investors continue to underpin competition for the best assets and platforms in the market.

Flex Living, for its part, confirmed its consolidation as one of the most dynamic emerging segments in the market, reaching €400 million in investment, mainly in developments located in Madrid’s peripheral areas.