Spain house prices: 5.5% rise forecast for 2027

Spain’s house prices could climb another 5.5% in 2027: the rise slows, but prices have already outpaced wages, hitting younger people and those on low incomes hardest. BBVA Research set out the forecast in Madrid on 7 October 2026, after predicting an 11.5% rise for 2026. Its economists point to household incomes, higher interest rates and slower sales as reasons for the expected slowdown.

Miguel Cardoso, BBVA Research’s chief economist for Spain and Portugal, says the gap between house prices and incomes is especially tough for younger people and those with less money. The bank expects that gap, alongside interest rates and slower sales, to hold back price growth in the coming months.

The outlook for new homes has also weakened. After nine months of weaker-than-expected investment in housing, BBVA Research now forecasts 130,000 to 140,000 completed homes in 2026 and 2027, down from its previous estimate of 140,000 to 160,000.

Topics: Housing

Source: Europa Press / Mallorca.com