Market Shift: Affordable Options Are Disappearing
Over the past five years, Spain’s real estate market has undergone significant changes. A shortage of new construction and limited supply of existing homes have pushed prices for apartments and houses noticeably higher. Today, the average sale price is almost 50% higher than five years ago. As a result, the share of listings with properties priced up to 200,000 euros has dropped from 60% to 37.6% between the third quarter of 2020 and the third quarter of 2025. This means that finding affordable housing is becoming increasingly difficult.
Regional Shifts: Where Affordable Housing Is Vanishing
In several cities across the country, listings for properties under 200,000 euros have almost disappeared. This trend is especially pronounced in capitals like Pontevedra, Albacete, Valencia, and Malaga. For example, in Malaga, the share of affordable apartments and houses fell from 45.3% to just 11.5% over five years. In San Sebastián and Palma, the situation is even more dire: properties in this price range make up only 1.7% and 4.4% of the market, respectively. For buyers on a budget, options are becoming increasingly limited.
Premium Segment on the Rise: New Market Leaders
At the same time, the number of listings in the high-price segment is also growing. Properties valued at over 500,000 euros now make up 23.5% of the national market. This increase is especially noticeable in Madrid, San Sebastián, Palma, Barcelona, and Malaga. For the first time, over half of all apartments and houses for sale in the capital are priced above half a million euros. This trend is due to the fact that expensive properties are slower to sell and stay longer on the market, while more affordable options are quickly snapped up and disappear from listings.
The middle segment and overall trends
Along with high-end properties, the share of listings in the mid-price range is also increasing. Homes priced between 200,000 and 300,000 euros now account for 18.6% of the market, while those in the 300,000 to 400,000 euro range represent 12.7%. Overall, Spain’s housing market is showing a steady trend toward higher prices and a shrinking number of affordable options. For many families and young professionals, buying a home is becoming an increasingly distant goal.
