Real estate expert Sergio Gutiérrez said the Spanish housing market has entered a two-speed phase as expensive homes take longer to sell in major cities. Gutiérrez said what happened a year ago is history, noting that the trend of selling any apartment at any price within days has ended.
Supply of apartments for sale is rising in major cities including Madrid, Barcelona and Valencia as sales operations slow down. At the same time, the market segment for affordable housing is experiencing an unprecedented boom across Spain as an alternative to prohibitive rent prices.
Gutiérrez said that since January 2026, buyer behavior for high-priced housing has changed noticeably as real estate fear of missing out, known as FOMO, has disipated. A year ago, sellers commonly listed apartments at elevated prices just to test the market and still sold them quickly, but Gutiérrez said that fear no longer exists and buyers previously feared losing a flat if they did not reserve it immediately.
Potential buyers now visit properties with a new perspective, aware of changing market conditions and willing to postpone purchases to await price cuts. According to Gutiérrez, many visitors comment that properties used to sell rapidly but are no longer selling, leading buyers to wait for price reductions that ultimately occur.
Demand for homes under 300,000 euros
At the opposite end of the market, homes priced at no more than 300,000 euros are moving at full speed. Gutiérrez said this lower priced segment will continue to experience price increases this year because these properties have become the main substitute for an exorbitant rental market.
Citizens who have the financial means are choosing to purchase these affordable apartments rather than paying increasingly expensive rent. Gutiérrez emphasized that high rental costs are keeping demand dynamic in areas with restrained property prices, creating a clear division across the housing sector.
Real estate advisor Sergio Ibáñez said housing sales in Spain fell 1.8% in April to 53,000 operations. Ibáñez noted that the decline represented four consecutive months of falling property sales nationwide.
Rental market impact on Spanish property prices
Gutiérrez said expensive apartments no longer sell easily and face inevitable price drops, while more economic areas remain in full surge. He added that rental market prices hold the key to the entire situation, making rental price trends crucial for determining the short and medium term future of home sales in Spain.
The divergence in the market leaves prospective buyers facing different conditions depending on location and price point. In Alicante, saving money for years is no longer enough for residents to purchase a home.
