Figures
Living, market data - Figures third quarter 2026 Spain
We analyzed the residential market in Spain during the third quarter of 2026. Learn about the evolution of the investment market, returns, and trends in the residential sector—including home sales, flex living, rental housing (Build-to-Rent—BTR and PRS), as well as student housing and senior living.
November 3, 2026 5 Minute Read
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Spain’s residential market continues to face a significant imbalance between supply and demand. The country has accumulated a shortfall of more than 750,000 homes since 2021, which could exceed one million by 2028. With more than one million new households expected to form over the next five years, increasing housing delivery remains one of the market’s key challenges.
Limited supply continues to put upward pressure on prices and weigh on affordability. Residential transactions totalled 725,000 over the past twelve months, down 3% year-on-year, while new-build permits reached 146,000 units (+11%). Despite the moderation in activity, house prices rose by 12.2% year-on-year in the second quarter, while the proportion of household income required to purchase a home increased to 38%.
Living investment reaches a new high
Strong market fundamentals continue to underpin investor interest. In the first nine months of 2026, Living investment reached €5.9 billion, up 56% year-on-year, already surpassing the full-year 2025 total and setting a new record with three months of the year still to come. Madrid accounted for 67% of investment, followed by Barcelona (10%) and Valencia (4%).
Multifamily remained the main driver of activity, attracting €3.916 billion and accounting for 67% of total investment. Within the segment, affordable housing continued to gain prominence, representing 40% of Multifamily investment and 27% of total Living investment.
Student accommodation attracted €1.27 billion, accounting for 22% of investment, supported by strong appetite for established platforms. Flex Living recorded €618 million, with Madrid accounting for close to 80% of the segment’s investment volume.
Prime yields remained stable at the end of the quarter, at 3.8% for Multifamily in Madrid, 4.5% for student accommodation and 5% for Flex Living. While regulatory uncertainty could prompt greater caution in some investment decisions, the structural housing shortage and robust demand continue to underpin investor interest in the Living sector.