There is no general real estate bubble in Spain, but there are regional tensions due to foreign demand, tourist rentals, and shortages of supply.

The main conclusion is that Spain is not facing a new real estate bubble like the one in 2008, although there are localized tensions in certain regions.

Among the factors driving up prices are:

• Intense foreign demand in areas such as the Balearic Islands, the Canary Islands, Alicante, Malaga, and Madrid.

• Speculative dynamics linked to tourist rentals and investment for profitability.

• Cash purchases by investors and individuals with high financial capacity, which excludes young people and middle-income families.

The study highlights that residential prices grew more than 10% year-on-year in the second quarter of 2025, and the mortgage demand is approaching 2006-2007 levels. However, 66% of appraisal companies and 75% of external experts believe that demand remains solvent, with more cautious buyers and stricter financing conditions than before the 2008 crisis.

Regarding the rental market, prices are expected to continue rising. In September 2025, the average rent reached €14.50/m², an annual increase of 10.9%. Cities such as Madrid, Seville, Alicante, Barcelona, ​​and Palma are experiencing record highs. Experts anticipate annual increases of between 9% and 15%, driven by the shortage of supply and the shift in demand from homeownership.

To improve access to housing, experts propose:

• Increasing supply through the construction of new rental housing and the mobilization of vacant housing stock.

• Strengthening legal security for landlords.

• Promoting public-private partnerships.

• Designing medium- and long-term land and financing policies.

• Promoting public aid such as guarantees, subsidies, or mortgages specifically for young people.