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RESIDENTIAL SPANISH MARKET 2025/2026
Official source INE - National Statistics Institute
The Spanish Residential Market entered 2026 with very strong price momentum but an increasingly constrained transaction market.
The central story is not a collapse in demand. It is the opposite: demand remains strong, while the supply of available housing is insufficient. This is pushing prices higher and, at the same time, making it harder for buyers to transact at previous volumes.
In 2025, Spanish home sales reached around 714,000 transactions, an increase of 11.5%, while the official INE house-price index rose 12.9% year-on-year in Q4.
By Q2 2026, prices were still rising 12.2% year-on-year, although the pace had moderated slightly from 12.9% in Q1.
As of September–October 2026, Spain is still expensive and generally rising, but the pace is becoming more uneven andbuyers have regained some negotiating power.
The city averaged €6,458/sqm in September 2026, up only 2.4% year-on-year and down 1.8% over the preceding quarter.
The city is extremely heterogeneous:
Salamanca: €10,865/sqm
Central/prime Madrid: €7,000–€11,000+/sqm
More peripheral areas: often €4,000–€6,000/sqm
Barcelona is at approximately €5,462/sqm, with prices up 5.8% y/y and essentially at a record level.
Paseo de Gracia - Mandarin Oriental Residences: €61 538/sqm for a penthouse
Turo park: €15 000/sqm
Pedralbes - Sarria - Diagonal Mar: €7,238/sqm
Eixample High streets: €6,648/sqm.
Ibiza
Santa Eulària: €8,594/sqm
Sant Antoni: €8,105/sqm
biza town: €7,431/sqm
Sant Josep: €7,162/sqm
For premium villas actual prices can go far above these averages.
Mallorca
Palma: €5,513/sqm
Calvià: €7,000/sqm
Andratx: €7,000/sqm
For premium villas actual prices can go far above these averages.
Marbella Pueblo: €5,154/sqm
Casco Antiguo: €5,195/sqm
Prime Golden Mile / Sierra Blanca / Nueva Andalucía: €8,000–€15,000 sqm
For premium villas actual prices can go far above these averages.
Sotogrande averaged €4,082/m²
For premium villas actual prices can go far above this average.
HOSPITALITY SPANISH MARKET 2025/2026
Spain’s hotel investment volume reached approximately:
€4.2 billion in 2025
That was the second-highest level ever recorded and represented around 18% of European hotel investment.
And H1 2026 was even stronger.
CBRE reports:
> €2 billion invested in Spanish hotels in H1 2026
Colliers estimates that the Balearic Islands attracted €577 million for the same period, approx 29%.
According to STR/Cushman & Wakefield, the Balearics recorded an average hotel ADR - Average Daily Rate of approximately: €220 in 2025
with ADR growth of around 9%.
Only Marbella was more expensive, at approximately €365.
Investors are moving towards luxury
This is where the hospitality market becomes particularly relevant to prime residential real estate.
In H1 2026:
85% of hotel investment volume was concentrated in 4- and 5-star hotels.
And roughly one-third of the new hotel pipeline through 2028 is five-star or grand luxury.
In 2025, 4- and 5-star hotels represented approximately 79% of investment volume.
So the investment thesis is increasingly:
fewer ordinary hotels + more high-quality / luxury / experience-led hospitality.
And there is another remarkable statistic. According to STR/Cushman & Wakefield, the Balearics recorded an average hotel ADR - Average Daily Rate of approximately: €220 in 2025
with ADR growth of around 9%.
Only Marbella was more expensive, at approximately €365.
Major recent transactions
The record price/key in Ibiza Balearic Islands - Six Sense sold €200 million - 137 keys: €1,46 million per room. Seller: Grupo Beachbox - Buyer: Gruppo Statuto (owner W hotel Ibiza)
Nômade Temple Madrid Prime area
Hotei Properties sold the five-star property to GS Bacares Iberia, the hotel investment/operating arm of Nômade Partners, for €105 million for 93 rooms, equivalent to approximately €1.1 million per room.
Mare Nostrum Resort, Tenerife
Spring Hotels acquired the Mare Nostrum Resort from Brookfield for €430 million. The resort comprises three hotels and approximately 1,037 rooms, together with additional leisure facilities. €415 000 per room.
Mallorca / Gran Canaria portfolio
Calena Partners acquired three hotels from Hotel Investment Partners (HIP) for approximately €200 million:
Madrid and Barcelona
French private-equity investor Extendam acquired three IHG-branded four-star hotels from Eurazeo, comprising 543 rooms:
The purchase is not official but estimated €140 million. €257 827 per room
Barcelona
One transaction that has not yet completed, but is worth watching, is the potential sale of the Grand Hyatt Barcelona (formerly Hotel Sofia).
Blasson Property Investments and AXA acquired the property in 2023 for approximately €180 million and subsequently invested around €20 million in refurbishment. In March 2026 they reportedly put it on the market at approximately €280–300 million.
If completed around €300m, it would represent a very substantial increase in value in only three years.
Important: I would treat this as an asking/marketing price rather than a completed transaction until a closing price is publicly confirmed.
Marbella Costa del Sol
One transaction that is particularly relevant for the ultra-luxury segment is the future Four Seasons Marbella.
In April 2026, Ricardo Arranz agreed to sell the land associated with the planned Four Seasons project to Immobel and Fort Partners, exiting the project. This is technically a development-land transaction rather than a completed hotel sale, but it is strategically important because it demonstrates the level of institutional capital entering Marbella's luxury hospitality market.
In General
Resort assets dominate around 60% of H1 2026 investment went into resort assets. The Balearics and Costa del Sol are therefore particularly important for hotel acquisitions rather than conventional residential property.
Investors prefer Prime location and quality over volume and concentrate capital in better-quality five- and four-star assets. This has pushed the average price per room to around €213,300 in Spain in H1 2026.
RETAIL SPANISH MARKET 2025/2026
Major advisers put total 2025 retail investment at approximately: €2,5 billion
For 2026, momentum has accelerated.
Retail investment reached €1.586 billion with Madrid accounting for €733 million, 46.2% of the Spanish total, and Barcelona €274 million.
Madrid is currently the strongest investment market retail in Spain.
In 2026, the most important Madrid retail transactions:
ISLAZUL Shopping Centre
Buyer: Castellana Properties
Seller: Henderson Park / Eurofund
Price: €340 million
Approximately 90,000 m²
The centre receives approximately 12 million visits per year.
San Miguel Market
Buyer: Anthos
Seller: Ares Management
Price: €200 million
Area: approximately 1,764 m²
Price sqm: €113 379
In 2017, Ares and Redevco bought the asset for €70 million. In 2026, Ares exited and its 75% stake was acquired by Anthos, family office.
The asset generated in 2024, approx €10.25 million in rental income (not NOI)
Gross rental yeld: 5,1%
Serrano - Madrid's prime luxury High street - €245/sqm/month - Yeld around 3.6%
Serrano, 32 - Michael Kors
Buyer: Puig family
Seller: Yukon Capital
Tenant: Michael Kors
Price: €27.5 million
Area: 500 sqm
Price/sqm: €55 000
Net rental yield: approximately 3.3%.
Barcelona
Paseo de Gracia: €250–€285/sqm/month and prime yeld: 3,7%
Paseo de Gracia, 97
Buyer: Puig family
Seller: Yukon Capital
Tenant: Jimmy Choo
Area: approximately 200 m²
Price: €20 million
Price/sqm: €100 000
Net rental yield: approximately 3.4%.
Rental apron: €56 667
Paseo de Gracia, 44
Seller: Monterri / Yukon-linked interests
Buyer: Pellicer family office (owner Etnia)
Price: approximately €15 million.
Area: 800 sqm with basement so 455 sqm sales area
Price/sqm: €33 000
No tenant - Flagship Etnia
the best retail assets are often traded privately/off-market.
Short list 2025
Bonaire, Valencia — €305 million
Castellana Properties from URW.
Parque Corredor, Madrid — €250 million
CBRE IM acquisition.
50% of Xanadú, Madrid — €200 million
Rivoli acquisition from Intu.
For more details, please contact us.
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