Spain’s real estate market in 2026 is undergoing significant changes that directly impact thousands of families and investors. For the first time in recent years, the share of purchases for investment purposes has almost halved, while demand for primary residences has grown. This shift is not only altering the structure of the market, but also affecting housing availability, rental prices, and prospects for future buyers.
According to data from Asufin (Association of Financial Services Users), in the first months of 2026, only a third of all home purchases were for investment purposes. For comparison, a year ago this figure accounted for more than half of all transactions. The decline is driven by investor concerns about lower yields from rentals and resales, as well as increased risks related to legislative changes. Meanwhile, purchases for primary residence have increased: in 2025, these made up 14.4%, but now account for 20.8%. The number of buyers changing their main home has grown especially noticeably—nearly triple compared to last year.
Yield Trends
Despite a decline in investment interest, rental yields continue to rise. In February 2026, the average yield across the country reached 7.12%, surpassing last year’s level. According to russpain.com, this is due to the steady increase in rental prices and limited supply on the market. The average cost of purchasing a 90-square-meter apartment reached €219,150, while the average monthly rent is €1,300. As a result, annual income for property owners exceeded €15,000 before taxes.
Experts note that the growth in yields is supported not only by high rental prices but also by a decrease in available apartments. Many owners prefer not to rent out their properties due to concerns about legislative instability and possible regulatory changes. This situation increases competition among tenants and drives prices up further.
Supply shortage
The rental market remains tense. According to Idealista, in February 2026 rental rates increased by 7.8% compared to the same period last year, and the average price per square meter reached €15. Over the past three months, prices rose by 3.3%, and compared to January—by 0.6%. The supply deficit is worsening as some investors leave the market amid fears of further regulatory changes and declining profitability.
María Matos from Fotocasa notes that despite the drop in profitability from 6.8% in 2020 to 5.9% in 2025, housing investments remain attractive. However, stricter rental regulations and growing risks are causing some investors to abandon the purchase of apartments for letting. This could further limit supply and increase pressure on the rental market.
Profitability by region
Rental returns vary greatly by city. In February 2026, apartments in Tarragona (8.15%), Sevilla (8.08%), and Jaén (7.39%) yielded the highest profits. In Madrid, the return was 5.56%, while in Barcelona it reached 6.99%. The least profitable investments were in San Sebastián (3.84%), Palma (4.42%), and Girona (4.49%). Experts note that the differences between regions are becoming more pronounced, while housing affordability in large cities continues to decline.
With limited supply and high demand for rentals, the market is becoming increasingly competitive. Homeowners face new challenges arising from legal changes and rising prices, while tenants are forced to compete for every available option.
In recent years, Spain’s real estate market has experienced several sharp changes. In 2022, there was a surge in investment interest due to low mortgage rates; by 2024, prices rose as new construction slowed. In 2025, stricter rental regulations had already led to a reduction in available properties. Now, the situation is following a similar pattern: investors are cautious, while demand for homes for personal use is increasing. Similar trends have been observed in other European countries, where tighter rental rules resulted in fewer available apartments and rising prices for tenants.
