Spain’s residential property market recorded a slowdown in May 2026, with both housing transactions and mortgage lending declining compared with the same period the previous year.
According to data published by the Statistical Information Centre of the General Council of Notaries, home sales in Spain fell by 11.8% year-on-year in May, while the number of mortgage loans granted for home purchases decreased by 4%.
However, this reduction in activity did not translate into lower property prices. On the contrary, the average price per square metre continued to rise, illustrating the different pressures currently affecting Spain’s housing market.
Home sales fall 11.8% year-on-year
A total of 55,761 residential property transactions were completed in May 2026, representing an 11.8% decrease compared with May 2025.
The decline affected most of the country, with home sales falling in 14 of Spain’s 17 autonomous communities.
Among the most significant decreases were:
- Valencian Community: -35.8%
- Balearic Islands: -20.6%
- Cantabria: -19.7%
The figures suggest that the slowdown was relatively widespread rather than being concentrated in one particular regional market.
Different property types were also affected. Sales of apartments declined more sharply, falling 14.1% year-on-year, while transactions involving detached and single-family homes decreased by 4.7%.
Mortgage lending also decreases
The slowdown in transactions was accompanied by a reduction in the number of mortgages granted to finance home purchases.
In May, 30,577 mortgage loans were granted for the acquisition of residential property, representing a 4% annual decline.
Mortgage activity decreased in ten autonomous communities, remained stable in the Basque Country and increased in six.
The Valencian Community once again registered one of the strongest declines, with mortgage lending falling 26.1%, while Castilla-La Mancha recorded an increase of 14.2%.
These differences highlight how financing conditions and housing activity can vary considerably between regions.
Fewer transactions, but higher property prices
One of the most notable aspects of the May figures is that lower transaction volumes have not resulted in falling prices.
The average price of residential property reached €2,049 per square metre, an increase of 8.8% compared with May 2025.
The Balearic Islands registered one of the strongest increases, with prices rising 16.3%, followed by Castilla-La Mancha at 15.4%.
Galicia was the only autonomous community to register a decrease in average prices, with a year-on-year fall of 6.8%.
This contrast — fewer transactions alongside rising prices — is particularly relevant for understanding the current Spanish property market.
Why can prices rise when fewer homes are being sold?
A decline in transactions does not automatically lead to lower property values.
Housing prices depend on multiple factors, including the amount of available supply, demand in specific locations, financing conditions and the type of properties coming onto the market.
In areas where demand remains strong but the supply of available housing is limited, prices may continue to increase even if the overall number of transactions falls.
The May figures therefore show a market experiencing a moderation in activity without a corresponding general correction in residential property prices.
What does this mean for buyers and sellers?
For potential buyers, the data underline the importance of analysing conditions at a local level rather than relying exclusively on national trends.
A national fall in transactions can coexist with substantial price increases in individual regions, cities or neighbourhoods.
Mortgage conditions also remain an important part of the equation. A reduction in the number of mortgages granted can influence purchasing capacity, particularly among buyers who depend heavily on external financing.
For sellers, meanwhile, lower transaction volumes do not necessarily mean lower achievable prices, especially in locations where available supply remains constrained and demand continues to be strong.
A changing Spanish property market
The 11.8% decline in home sales in Spain in May 2026 represents a clear slowdown in activity compared with the previous year. At the same time, the 8.8% increase in the average price per square metre shows that demand and supply conditions continue to support prices in much of the country.
It is therefore important to distinguish between the number of transactions taking place and the evolution of property values.
At Maonlof, we closely follow housing transactions, financing trends and regional market developments to better understand how changes in the Spanish property market may affect buyers, sellers and investors.
