Home sales in Spain drop 11.2% in first quarter of 2026

Home purchase transactions in Spain fell 11.2% year-on-year to 163,322 in the first quarter of 2026, according to data from the Ministry of Housing and Urban Agenda.

The Ministry of Housing and Urban Agenda reported that transactions reached the lowest figure for this period since 2024. Free housing accounted for 159,317 operations, down 11% from the previous year, while protected housing recorded 4,005, 20.4% lower.

Compared with the previous quarter, the drop was 18.4%. Sales of used homes fell 10.9% year-on-year and new-build homes declined 12.2%.

In 2025, 752,098 transactions were completed, the highest figure since 2007. First-quarter 2026 data stand 35% below the historic peak recorded in 2006.

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Illustration of Mexico's economy showing GDP contraction with charts and Mexico City skyline
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Mexico economy contracts 0.6 percent in first quarter of 2026

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Mexico's gross domestic product fell 0.6 percent in the first quarter compared with the prior period, according to final Inegi data released Friday. The contraction was smaller than expected and revives debate over possible further rate cuts by Banxico.

Housing prices rose 12.9% year-on-year in the first quarter of 2026, according to the National Statistics Institute, marking 11 straight years of continuous increases.

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Mario Andrés Ramírez, president of Fedelonjas, warned of a 6.5% drop in new housing sales in the first quarter of 2026 compared to 2025, due to high credit costs and fewer subsidies. In cities, nearly half the population lives in apartments, with rentals becoming the dominant form of occupancy. The federation calls for professional management of the rental market.

Sales of luxury homes in Hong Kong surged 156% in the first quarter, driven by stock-market gains and attractive prices, real estate agents say. Mainland Chinese buyers accounted for more than half of the deals. The segment is likely to see another increase in the second quarter.

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The International Monetary Fund has cut its growth forecast for Spain's economy by two tenths, to 2.1% in 2026 and 1.8% in 2027, due to the Middle East conflict. The organization attributes the adjustment mainly to rising oil and gas prices. It recommends eliminating rent controls and taking stronger action on housing.

Prices for residential properties in Germany are rising and nearing the summer 2022 peak. Gero Bergmann, president of the Association of German Pfandbrief Banks (vdp), expects further increases due to a growing housing shortage. In the fourth quarter of 2025, prices rose 4.2 percent nationwide year-over-year.

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The Economic and Social Council (CES) has released its 2025 Annual Report, highlighting the notable resilience of the Spanish economy amid uncertainty. It warns, however, that growth has not translated into equivalent improvements in social well-being due to high housing and living costs.

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