Spanish home sales slide 11.2% in Q1 2026 as record 2025 fades and mortgage costs climb

The Spanish housing market opened 2026 with a sharp decline in transactions, state data showed on Thursday. Home sales totalled 163,322 between January and March, an 11.2% drop from the same period in 2025 and the weakest first quarter since 2024, according to the Ministry of Housing and Urban Agenda. The last time a Q1 came in lower was two years ago, when 160,441 sales were recorded.

A sharp correction after a record year

The slowdown follows an exceptionally strong 2025, when 752,098 homes changed hands — a 5% rise on 2024 and the highest annual figure since the pre-crisis boom of 2007. Yet the growth was already losing momentum. The fourth quarter of 2025 posted the smallest year‑on‑year advance of the year, and January 2026 marks the fifth month of declines in notarial records. A pullback after such record volumes was in the cards, and the Q1 data confirms the expected cooling.

Q1 2024160,441

Q1 2025184,040

Q1 2026163,322

Q1 2024

160441

Q1 2025

184040

Q1 2026

163322

Data from the article text

The quarterly drop is even starker compared to the final three months of 2025, when 200,250 transactions were logged. Against that base, the first quarter represents an 18.4% reverse. While comparisons to the end‑of‑year rush are always sharp, the magnitude underscores how quickly the cycle is turning.

Mounting headwinds: rates, supply and affordability

Ministry sources point to the international climate, which has pushed up mortgage costs.

“The decline is probably due to the international context, which has caused an increase in the cost of mortgages, among other factors.”

The ECB is expected to confirm a further rate rise today, a move that would compound the financing squeeze.

Supply is also an issue.

“Another factor causing this drop is the lack of supply; the adjustment is especially noticeable in the most stressed markets.”

Prices are still elevated, and Bermúdez, deputy director of real‑estate network Donpiso, says the market is hitting an affordability wall:

“There comes a moment when prices clash with wages, and these adjustments are understood in that context.”

Used vs new, protected vs free

The correction is broad. Free‑market homes — the overwhelming majority — recorded 159,317 sales, an 11% year‑on‑year decline. Protected housing, a much smaller segment, saw its transactions plummet 20.4% to just 4,005.

Within the free‑market category, resale homes fell 10.9% to 146,292, while new‑build sales dropped 12.2% to 13,025. The steeper new‑home falls partly reflect a supply shortage: developers are struggling to deliver finished units fast enough, and higher construction costs are adding to developers’ caution.

Regional and quarterly swings

No part of the country escaped the slide. Andalucía, the largest market by volume, still led with 31,162 sales, but its tally was down year‑on‑year alongside Madrid, Catalonia and the Valencian Community. Against the fourth quarter, free‑market sales sank 17.8%, protected housing dived 35.9%, and new‑build transaction volumes fell by a third.

The value of residential real estate changing hands also shrank. Total turnover in Q1 reached €35,327.9 million, down 3.7% from €36,690.6 million in the same quarter of 2025. Experts cited in the reports expect the cooling to feed through to price growth by 2027 — not in the form of outright falls, but a marked deceleration.