Spain 2026 Property Market Forecast - will prices continue to grow?

Many buyers are currently waiting for a market correction, hoping it might create better opportunities along the Spanish coast. In this episode, Alex from Inmo Investments Real Estate Spain takes a closer look at whether that expectation is realistic — and what the 2026 outlook actually means for the Costa Blanca South.

We begin with the broader picture across Spain. Employment remains stable, household formation continues, and international migration continues to drive housing demand. At the same time, new construction is not keeping pace — particularly in established coastal areas where demand is strongest. This structural imbalance helps explain why prices in prime locations remain firm, even when headlines suggest uncertainty.

From there, the focus shifts to the Costa Blanca. The market here is not uniform. Well-located, move-in-ready properties near the coast and key amenities continue to attract serious international buyers and remain liquid. In contrast, inland properties, secondary stock, or homes requiring renovation are seeing more selective demand. Pricing discipline and proper positioning have become essential.

The episode also addresses holiday rental regulation — a topic many investors are watching closely. While short-term letting remains possible, tighter registration rules and increased enforcement mean due diligence is more important than ever. Licensing, community statutes, and municipal planning regulations must be verified before purchase. Legal readiness has become a decisive factor, particularly when selling.

For buyers in 2026, the guidance is clear: prioritise layout, long-term usability, and financial preparation. When the right property becomes available, hesitation can be costly. For sellers, realistic pricing, full documentation, and professional presentation are what convert demand into results.

The Costa Blanca South continues to attract Northern European buyers seeking stability, climate, and lifestyle. The opportunity is there — but success depends on understanding where the market is genuinely strong and where expectations need to be adjusted.

The Inmo Investments Real Estate Podcast is produced by Inmo Investments Real Estate S.L., based in La Zenia, Orihuela Costa, Costa Blanca.

We provide professional guidance on buying, selling, and investing in property in Spain.

For further information visit: www.inmoinvestments.com

Connect with us on YouTube, Instagram, and Facebook for regular market updates and property insights.

Transcript

SPEAKER_00 0:19

Hello and welcome back to the Invo Investments channel. In our previous video, we looked back at what actually happened in the property market over the past year 2025. We showed you some of the figures, transactions, the buyer behaviors that we saw here in Marihuela Costa and in the Costa Blanca.

Setting The 2026 Focus

SPEAKER_00 0:38

Today I want to take the next step and look ahead to what's gonna happen in the year 2026. So this video is gonna focus on the property market outlook for 2026, looking first at Spain as a whole and then what those national trends could realistically mean for the Costa Blanca and our area here. So as always, it isn't about making bold predictions, it's about understanding

National Trends Shaping Spain

SPEAKER_00 1:04

the main forces shaping the market and how things are gonna influence the property market here so that buyers and sellers can make informed decisions. The big picture across Spain as a national level, the main theme going into 2026 is pretty clear. Demand for housing continues to be very strong while supply remains very limited. Most major Spanish banks, research institutions, and property platforms are actually pointing to the same issue. Spain simply isn't building enough homes in the area where people want to live. As a result, transaction levels are expected to remain high by historical standards, and prices are still under upward pressure. Even growth becomes more moderate. This isn't a short-term trend, it's a very structural situation. What about the prices in 2026? Well, different organizations publish different forecasts. The overall direction is broadly the same. Most serious projections expect prices to continue rising in 2026, although not necessarily at the same pace as we've seen in

Price Outlook And Hotspots

SPEAKER_00 2:19

the past years. Rather than a single national figure, what we are likely to see is a stronger performance in areas with limited supply and high demand like coastal areas and prime locations, and slower growth and longer selling times in less desirable locations, let's say inland properties and so on. So, in other words, location and quality will matter more than ever. So one of the reasons demand remains strong is that Spain's wider economy continues to perform relatively well compared to much other countries in Europe, not forgetting the life quality we can enjoy here. Employment levels, household formation, and migration are all supporting housing demand. Foreign

Demand Drivers And Migration

SPEAKER_00 3:03

buyers also remain a key part of this picture, particularly in coastal areas where we have massive tourism and industries. Even when demand from one country softens, interest from other markets often compensates. So for regions like the Costa Blanca, this international demand acts as a stabilizing force. Supply remains the main constraint. New construction is not keeping pace with demand, especially in established coastal areas where land availability is very limited and planning takes a lot of time. This scarcity supports prices, particularly for well-located property,

Supply Constraints And Scarcity

SPEAKER_00 3:45

homes close to the coast and amenities, and properties that are ready to move into. For buyers, this means fewer bargains, and for sellers, it means good properties continue to attract attention if they are priced correctly. Holiday rental regulation and market impact. Another factor shaping the outlook for 2026 is regulation, especially around holiday rentals. Across Spain, registration requirements and compliance standards, in one word, Spanish bureaucracy, for short-term

Holiday Rental Rules Tighten

SPEAKER_00 4:19

rentals are becoming quite stricter. In some regions, enforcement has increased significantly. This doesn't mean holiday rentals are disappearing, but it does mean that they are becoming more regulated and in some cases less attractive for casual investors. As a result, some properties might return to the resale markets, while others are taken off the rental market, altogether reinforcing the broader issue of housing scarcity. For buyers, it's increasingly important to understand what is legally possible with a property before purchasing. What this could mean for the Costa Blanca. How does all that translate locally in our area? For the Costa Blanca, we expect continued interest from international buyers, firm pricing in the most desirable areas, and a clearer divide between high-quality, well-presented homes and secondary

What It Means For Costa Blanca

SPEAKER_00 5:16

stock. Properties in prime locations that are priced realistically are likely to remain liquid. Homes that need burk have legal complications or are overpriced, might still sell, but they will take a longer and require adjustment. What buyers should keep in mind for 2026. If you are planning to buy in 2026, don't rely on the idea of a broad market correction or price drops. Focus on location, layout, and long-term usability. Be prepared to move decisively when the

Buyer Strategies For 2026

SPEAKER_00 5:52

right property appears so that you can act quick. Good opportunities still exist, but they tend to be taken quickly. So you make sure you are better prepared. What sellers should keep in mind if you are thinking about selling, presentation and online visibility remains critical. Pricing needs to be reflect real market conditions and not the last year's peak. Legal readiness is more important than ever. Make sure you've

Seller Playbook And Readiness

SPEAKER_00 6:21

got all your documents in place. Buyers are cautious, informed, and detail-oriented. They will pay for the quality and they will want to make sure about everything. Final thoughts, and looking ahead to 2026, the property market is the best described as stable under pressure. Looking ahead to 2026, the property market is best described as stable under pressure. Demand remains strong, supply remains limited, and prices

Final Takeaways And Subscribe

SPEAKER_00 6:50

are being supported by those fundamentals, particularly an international coastal market like the Costa Blanca. I hope you enjoyed this video and you found it informative. If you'd like to hear more about property updates in Spain and especially on the Costa Blanca, don't forget to subscribe our channel. Give us a thumbs up in this video, and I hopefully look forward to hearing you soon.