The housing market in Spain is beginning to show signs of slowdown in a large part of the country, with price drops in almost half of the capitals and double-digit declines in some cases, in a context where demand is beginning to show signs of exhaustion after years of strong increases.
According to the latest data, although the national average price continues to grow by 3.24% year-on-year, territorial behavior is increasingly unequal, with a clear division between large cities and a large part of the peninsular interior.
Notable drops in inland and northern capitals
The largest corrections are concentrated in medium-sized and small cities, especially in the center and north of Spain. Among the most pronounced declines are:
- Valladolid: -12.01%
- Santa Cruz de Tenerife: -7.03%
- Zamora: -6.07%
- Almería: -5.92%
- Soria: -5.65%
- Lugo: -4.61%
- León: -4.61%
- Burgos: -3.70%
Decreases are also recorded in cities such as Valencia (-1.33%), a case observed with particular attention due to its size and economic weight.
Madrid and Barcelona maintain the upward trend
In contrast, large capitals continue to show resilience, although with less intensity than in previous cycles. Madrid registers an increase of 4.25%, while Barcelona grows by 1.60%.
Increases are also notable in other markets such as Palma, Santander, Pamplona, or Vitoria, reinforcing the idea of a market divided into two clearly differentiated dynamics.
Demand begins to cool
The cooling of the market is not only reflected in prices. Housing sales have fallen by 2.6% in the first quarter of 2026, according to INE data, while more demanding financial conditions and accumulated price increases are beginning to limit access to housing.
Furthermore, analysts point out that the labor market is losing some dynamism and that household purchasing power is reaching its limit after several years of increases.
More owners lower prices in their listings
The adjustment is also perceived in seller behavior. According to Idealista, 14% of homes for sale have reduced their price, compared to 11% the previous year, indicating a progressive change in market expectations.
The market reflects an increasingly clear division. On the one hand, large cities with employment, tourism, and population growth, where prices continue to rise.
On the other hand, capitals of the interior and areas affected by depopulation, where demand is weaker and prices correct more intensely.
Provinces such as Zamora, Soria, or Lugo are among the most affected by declines, in line with the demographic and economic deterioration of some areas of the country.