Sales volumes fall, price growth diverges and supply continues to shape the market
Following the Easter period, early data from 2026 is starting to give a clearer picture of how the Spanish property market is evolving.
One of the most notable developments is that sales volumes have dropped compared to the same period in 2025, with several reports pointing to a relatively sharp slowdown in transactions during the first months of the year.
At first glance, this could be interpreted as weakening demand. However, the underlying dynamics suggest a more nuanced picture.
Sales Are Down - But Demand Remains
According to Miles Barnett, CEO of Portfolio Deluxe:
“Sales volumes have dropped at the start of 2026, but this is most likely a reflection of affordability constraints rather than a drop in demand. Rapid price increases over the past few years have pushed certain parts of the market beyond the reach of many buyers. What we are seeing is not a lack of interest, but a mismatch between pricing and what a large part of the market can realistically access.”
This distinction is important.
Demand remains present and continues to come from a broad mix of international buyers, with strong activity from:
- Dutch buyers
- Polish buyers
- Baltic markets (Estonia, Latvia, Lithuania)
- Northern European markets more generally
The buyer base is therefore still active and diverse.
Supply Constraints Are Driving the Market
One of the key themes continuing into 2026 is limited supply, particularly in well-located coastal areas.
New developments are often released in relatively small phases, and planning constraints in established areas limit the volume of new stock entering the market.
This has created a situation where:
- Prices have risen quickly in recent years
- Availability remains restricted
- Buyers are increasingly selective
As a result, affordability is becoming a more important factor in transaction volume.
Price Adjustments Emerging in Some Areas
The slowdown in transactions is now beginning to have a knock-on effect on pricing in certain locations.
Compared to Q4 2025, price softening has been observed in parts of the Costa Blanca, including:
- Orihuela Costa
- Pilar de la Horadada
- Ciudad Quesada
- Calpe
- Finestrat
- Altea
On the Costa del Sol, similar trends are visible in:
- Fuengirola
- Benahavís
These adjustments are not uniform, but they indicate that some areas may have reached short-term pricing limits.
Growth Slowing in Prime Locations
In other established hotspots, price growth has not reversed but has clearly slowed.
This includes areas such as:
- Marbella
- Benalmádena
- Torrevieja
These locations continue to see demand, but the pace of price increases has moderated compared to previous quarters.
Strong Performance Where Supply Exists
Interestingly, areas with active new-build pipelines are continuing to show more consistent price growth.
On the Costa del Sol, this includes:
- Mijas
- Estepona
- Manilva
These areas benefit from:
- Ongoing development activity
- Greater availability of new stock
- Continued interest from international buyers
This suggests that where supply is available and priced in line with current market expectations, transactions are still progressing and price growth remains supported.
A Market Becoming More Segmented
What is emerging in 2026 is a more segmented market.
Rather than uniform growth, we are now seeing:
- Price adjustments in some areas
- Stabilisation in others
- Continued growth where supply aligns with demand
This reflects a shift from a broad upward market to a more selective environment where location, pricing and product type matter more than ever.
What This Means Going Forward
The early part of 2026 does not point to a weakening market in structural terms, but rather a period of adjustment.
Key themes to watch:
- Affordability thresholds in key areas
- Continued supply constraints
- Performance divergence between locations
- The role of new-build in sustaining activity
For buyers, this creates both challenges and opportunities.
For sellers and developers, it reinforces the importance of realistic pricing and strong positioning.
Going forward
The Spanish property market is not slowing in a uniform way and again, it is important to reiterate that the underlying demand is still there both from international buyers and national buyers.
This being said, buyers are increasingly price-sensitive and more considered in their decisions. This is creating a clearer distinction between properties that are correctly priced and those that are not.
In many cases, new-build developments continue to transact at what can be considered true market value. Pricing is typically structured, data-driven and aligned with current demand, which allows transactions to continue even in a more constrained environment.
By contrast, parts of the resale market are beginning to show signs of pricing misalignment. Some sellers are attempting to take advantage of previous price growth, while agents, often competing for listings, may be less inclined to challenge optimistic pricing expectations.
The result is a widening gap between achievable value and asking prices, particularly in certain segments of the resale market.
As the market continues to adjust, this distinction is likely to become more pronounced.
For buyers, this reinforces the importance of focusing not just on price, but on whether a property represents real value within the current market conditions.
