2026 Spanish Market Report by Dils Lucas Fox

Spain enters 2026 in a position few would have predicted a decade ago: as one of Europe’s most resilient and fastest-rising luxury housing markets. A combination of competitive pricing, constrained supply and deep international demand has pushed the country into the top tier of global residential destinations, according to the latest Dils Lucas Fox Market Report.

The data points to a sector that has moved beyond recovery and into structural strength.

A market defying the European slowdown

While parts of Europe continue to absorb the effects of higher rates and sluggish growth, Spain has posted one of the strongest performances on the continent. Home sales in the first half of 2025 reached 379,484, the highest H1 figure since before the financial crisis and 32.6% above the decade average.

Price growth has been equally striking. Spanish property values rose 8–13% in H1, the fastest pace in nearly 20 years, and almost 47% over the past decade, comfortably outpacing inflation.

Prime and super-prime markets have been particularly resilient, with prices expected to rise 3–6% and 6–10% respectively in 2026.

The new European value play

Spain now sits in Europe’s Top 3 for prime revaluation, outperforming nine of twelve key property markets over the past five years.

Several forces are driving this outperformance:

A growing population and household formation
A decade-long undersupply of new homes
Cooling inflation and falling interest rates
Persistent international demand

The result is a market that has become, quietly but decisively, Europe’s value play: a place where prime buyers perceive long-term upside rather than short-term speculation.

A luxury market defined by scarcity

The national picture of undersupply is even more pronounced at the top end. Total listings in Spain fell 15% in H1, yet the number of properties priced above €2.5M declined by just 1%, leaving around 14,000 prime homes on the market.

Four regions dominate this limited stock:

Málaga (28.5%)
Mallorca (25.3%)
Madrid (11%)
Barcelona (7.5%)

These are markets where geography, planning constraints and global demand combine to create a structural scarcity.

The global buyer becomes the norm

International demand has become a defining feature of Spain’s high-end market.
In transactions above €2.5M, 62% of buyers are foreign, and 60% of super-prime deals close without financing, a reminder that this is a liquidity-driven market.

European Union buyers remain the largest group, followed by the US and Latin America (notably Mexico), the UK, and a growing number from Southeast Asia.

A new cohort is emerging in 2026: tech founders, finance executives, professional athletes and entertainment figures, whose lifestyle-driven purchasing habits differ from the traditional second-home market.

Branded Residences take centre stage

One of the most notable shifts is the expansion of branded residences, which has gone from niche to mainstream. Spain now hosts 38 projects, including Four Seasons, Mandarin Oriental and Six Senses, with a further 25 in development. These homes command a 20–40% premium over comparable non-branded stock.

Marbella leads with nine projects, followed by Madrid and Tenerife. Developers view these schemes as a route to international absorption; buyers see them as a hedge against quality risk.

A new definition of luxury living

The luxury buyer of 2026 is searching for more than architecture or postcode. Demand is increasingly shaped by:

Domestic concierge living: 24/7 service, housekeeping, private chefs, wellness clubs.
Hybrid-use lifestyles: second homes used partly for rental or flexible residence.
Biofilic design: private spas, natural light strategies, air and water filtration, indoor gardens.
Environmental credibility: solar energy, BREEAM/Passivhaus certification, and low-VOC materials.

These are not stylistic flourishes but expectations.

What buyers are choosing

Dils Lucas Fox’s H1 data shows:

61% of prime buyers opt for apartments
34% for villas, typically with large plots
Interest is rising in penthouses and duplexes with outdoor space
50–60% use the property as a second home or hybrid model
Family offices continue to increase exposure to residential as a long-term asset class

Looking ahead: A market built on fundamentals, not frenzy

Spain’s luxury property sector heads into 2026 neither overheated nor speculative. It is being shaped by deeper forces: structural supply shortages, diversified international demand, demographic growth and a widespread reappraisal of lifestyle priorities.

A decade ago, Spain was seen as the periphery of Europe’s real estate map. In 2026, it looks increasingly like its centre of gravity.