Spanish Property Market: Where Are We Headed?

Price Forecast

Central scenario (60% probability): 3-5% increase in 2026, 2-4% in 2027. Bull scenario (20%): 6-8% annually. Bear scenario (20%): flat to -3%.

Regional Differentiation

Costa del Sol: 4-6% annually. Costa Blanca North: 3-5%. Costa Blanca South: 2-4%. Costa Calida: 2-5% with wider uncertainty.

Yield Outlook

Gross yields likely to compress slightly: 2026 average 5.8-6.0% (down from 6.2%). 2027 average 5.5-5.8%.

Investment Implications

Current timing is reasonable. Focus on yield. Diversify by location. Plan for 5-10 year hold.

Market data from the Avena Terminal database, updated daily.