On June 17, Idealista published a report showing that property prices in Spain continue their upward trend, with some resale cases demonstrating price growth of more than 100%. Against the backdrop of limited supply, strong foreign demand, and high activity in major cities, Spain remains one of the most dynamic real estate markets in Europe.

🏡 The resale examples are particularly telling. In Estepona, a property purchased in 2021 for €200,000 was sold in 2026 for €420,000. In Málaga, a property bought in 2017 for €450,000 was later sold for €950,000. In Madrid, an apartment purchased in 2014 for €165,000 was resold for €400,000.

💶 These figures should not be interpreted as the average return across the entire Spanish market. However, they clearly illustrate how strong price growth has been in liquid locations where demand consistently exceeds supply. In some cases, the market is not only preserving capital but also generating value growth of 100% or more over several years.

📊 In percentage terms, the examples look even more striking:

— Estepona: €200,000 → €420,000, an increase of 110% in 5 years;
— Málaga: €450,000 → €950,000, an increase of 111% in 9 years;
— Madrid: €165,000 → €400,000, an increase of approximately 142% in 12 years.

🏗️ The main reason behind this growth is not only strong demand but also limited supply. Spain is not building enough new housing, especially in the regions where both domestic and international demand are concentrated. This applies to Madrid, Málaga, Costa del Sol, Valencia, Alicante, Barcelona, the Balearic Islands, and the Canary Islands.

🌍 Foreign buyers are adding further pressure to the market. For international investors, Spain remains one of the most understandable European countries for property purchases, with developed infrastructure, stable tourist flows, strong rental demand, and a wide selection of properties across different budgets. Interest remains especially strong in coastal markets and major economic centers.

💡 At the same time, the current price growth differs from the situation before the 2008 crisis. Back then, the market was overheating due to excessive construction and easy credit. Today, the key issue is different: there is not enough housing, construction is not keeping pace with demand, and quality properties in popular areas are quickly absorbed by the market.

🏙️ As a result, Spain is increasingly becoming a market where precise selection matters. It is no longer enough to simply buy a property in the country and expect automatic capital growth. The specific city, district, building condition, legal status, rental potential, and future resale liquidity now play a much more important role.

📍 The strongest positions are held by several types of locations:

— coastal markets with international demand, including Costa del Sol and Costa Blanca;
— major cities, especially Madrid and Barcelona;
— island markets, where supply is limited by geography and regulation.

⚖️ For buyers, this means that the Spanish market is becoming more professional. Opportunities for capital growth remain, but the cost of making a poor decision is increasing. Properties in weaker locations, with legal restrictions or limited liquidity, may significantly underperform the market, even if the national statistics remain positive.

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