HOME owners in Spain are now spending over a third of income on housing as the rental crisis continues.
This year housing prices are set to increase by 14.3%, according to El Mundo, with the rise in real estate prices showing no signs of slowing down.
Year-on-year both new and old properties have risen in price by 11.8%, compared to 10.7% in the previous quarter. This excludes the rate of inflation, which reached 3.3% last month due to the war in the Middle East.
This aforementioned data was published by Tincsa by Accumin in the latest IMIE mercados locales 2026 T1 report.
Also in this report was the shocking fact that those in Barcelona and Madrid are spending over 60% of their income on housing.
In these two locations, and in San Sebastian, the price per metre squared has surpassed €4,000 in the first three months of this year.
Closely behind these hotspots are Palma de Mallorca and Bilbao which both register a price of €3,439.
The largest year-on-year increases occurred in Santander (20.9%), Albacete (20.8%) and Pontevedra (19.8%) with just one area, Palencia, seeing the price of housing fall. Even then, it decreased by just 1%.
Across provincial capitals the most widespread price pressures in Spain have been seen – 30 of the 52 capitals have a year-on-year charge which exceeds 10% while in the same period last year only 20 of them got to this high rate.
With these prices increasing above inflation, buying a first home is challenging.
The average mortgage in Spain cost €184,004 during the last quarter of 2025 – this requires a monthly payment of€797.
This pressure surrounding mortgages is only expected to increase with the Euribor (Euro Interbank Offered Rate) rising to 2.551% in March, marking the highest increase since October 2024.
These statistics are causing concern for home owners, renters and first time buyers alike who are facing housing pressures that are only set to grow.
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