Anyone who has followed the Spanish housing market over the past few years knows that quite a lot has changed. Homes have become more expensive, demand remains high, and affordable real estate is becoming increasingly difficult to find, especially in popular cities and coastal areas. In the autumn of 2026, housing will even be at the very top of the political agenda.

But what does that actually mean for those who want to buy a home in Spain?

Spain remains popular

The appeal of Spain has clearly not disappeared. On the contrary. The country remains a favorite destination for people who want to live here, invest, spend the winter, or simply seek a second home.

We see this not only in tourism, but also in international interest in real estate. The Spanish economy continues to grow and the real estate market remains strong, despite discussions about affordability.

According to the Spanish statistical office INE, housing prices in the first quarter of 2026 were no less than 12.9% higher than a year earlier . Existing homes became particularly more expensive: the annual increase there amounted to 13.5%. For new builds, it was 9.1%.

Those are solid figures. Yet they don't tell the whole story.

The real estate market is not the same everywhere.

Spain is, of course, not a homogeneous real estate market. The situation in Madrid or Barcelona cannot be compared to that on the Costa Blanca, Costa Cálida, or Costa del Sol.

Differences can also be significant within the same region.

Moreover, an additional factor comes into play on the Spanish coast: international demand. Foreign buyers have been a major driving force of the real estate market for years. For many of them, the purchase is not solely about return on investment, but above all about quality of life.

More sun, a Mediterranean climate, outdoor living, gastronomy, and the possibility to spend part of the year in Spain: these are all reasons why the demand for homes on the coast remains relatively strong.

The government intervenes

The sharp price increases have simultaneously caused a major social problem. For many Spaniards, owning a home has become increasingly difficult to attain.

Therefore, on October 6, 2026, the Spanish government approved a package of 21 measures to improve access to housing and increase the supply of affordable housing.

One of the most striking measures is a new financing mechanism of 10 billion euros for people who want to buy their first home. Through the so-called TU CASA program, up to 20% of the value of a home can be financed under certain conditions, with a maximum of 50,000 euros.

In addition, the government wants to, among other things, stimulate the construction of affordable housing, reactivate vacant homes, and more strictly regulate certain forms of temporary rentals and room rentals.

Important to note: some of these measures still need to be confirmed by the competent parliamentary procedure. After all, Spanish politics is currently in flux.

And what does this mean for the real estate market?

For prospective buyers, the current situation is not necessarily bad news.

Yes, homes have become more expensive. And yes, the market is more competitive than a few years ago. But at the same time, there remains a wide range of housing types and price categories, especially when you look beyond the major cities.

Moreover, new construction continues to play an important role. While existing homes rose in price by 13.5% in the first quarter of 2026, the increase in new construction remained slightly more moderate at 9.1%.

This makes new construction attractive to certain buyers, especially when energy efficiency, modern build quality, communal facilities, and low maintenance costs are important.

The Costa Blanca remains a special market

For those looking specifically at the Costa Blanca, it is important not to look only at the national figures.

The region has its own dynamic. The combination of coast, climate, infrastructure, international community, and a wide range of apartments, villas, and new construction projects makes the Costa Blanca attractive to both Spanish and foreign buyers.

Tourism also remains strong there.

In September 2026, the average hotel occupancy on the Costa Blanca was 86%. That was 1.3 percentage points higher than in September 2025. For the first half of October, the already confirmed occupancy was around 79%.

These figures illustrate that the Costa Blanca remains an important tourist destination even outside the classic summer months.

Buying in Spain today primarily requires good preparation.

The days when you could simply choose a home, make an offer, and didn't have to ask too many questions are over.

Anyone buying real estate in Spain today would do well to look beyond just the asking price.

Location, construction quality, common charges, energy performance, potential rental opportunities, local regulations, and the legal status of the property are at least as important.

The difference between a home for personal use, a second home, and an investment must also be clear beforehand. What appears to be an interesting purchase on paper is not automatically the right choice for every buyer.

Spain remains Spain

The Spanish real estate market will have clearly changed in 2026. Prices have risen, demand remains high, and the government is trying to bring more balance between supply and demand with new measures.

But one thing is perhaps even more important: the appeal of Spain has remained.

For many people, buying a home here is about more than four walls and a plot of land. It is about outdoor living, enjoying the climate, spending time with family and friends, and being part of that typical Mediterranean lifestyle.

And that is precisely why Spain remains a destination for many foreign buyers where they look not only for real estate, but for a new way of life.

At Global Spain, we monitor developments in the Spanish real estate market daily. Whether you are looking for a second home, a permanent residence, or an investment on the Costa Blanca or Costa Cálida: good preparation begins with a clear understanding of the market and your own preferences.