Spain’s Housing Market: A Tale of Two Segments in Q1 2026
Spain’s housing market experienced a notable slowdown across most price brackets in the first quarter of 2026, as reported by idealista. However, amidst this general decline, one segment stood out with rising demand: homes priced above €1 million. This article delves into the dynamics of the luxury housing market, highlighting where demand is increasing, the performance of various cities, and the broader context of the real estate landscape.
Where €1 Million-Plus Demand is Rising
While the overall demand for homes in Spain dipped, properties priced above €1 million saw a 3% increase in nationwide demand. This trend is particularly interesting as it reveals a divergence in buyer interest across different cities.
Major Cities – Over €1 Million Segment
In major urban centers, the demand for luxury properties has varied significantly:
| City | Demand Change |
|---|---|
| Palma | +19% |
| Bilbao | +19% |
| San Sebastián | +15% |
| Valencia | +10% |
| Sevilla | +5% |
| Madrid | +4% |
| Barcelona | −14% |
| Málaga | −19% |
Palma and Bilbao emerged as leaders in growth, each recording a remarkable 19% increase in demand. In contrast, Málaga faced the sharpest decline in the luxury market, with a 19% drop, while Barcelona also struggled, seeing a 14% decrease.
Outside the major markets, cities like Vitoria-Gasteiz (+385%), Almería (+181%), Girona (+147%), and Pamplona (+140%) experienced dramatic increases in demand, albeit from relatively low starting volumes.
Bilbao: Consistent Growth Across Every Price Bracket
Bilbao stands out as a unique case in the current landscape. It was the only major city analyzed that recorded rising demand across all five price ranges in Q1 2026.
- In the most affordable segment (homes priced up to €210,000), demand surged by 29%.
- The €210,000–€360,000 bracket saw a 25% increase.
- Homes priced between €360,000 and €600,000 experienced a 17% rise.
- The €600,000–€1 million segment climbed by an impressive 38%.
- Even at the top end, properties above €1 million recorded a 19% increase.
This consistent growth across various price brackets highlights Bilbao’s robust appeal to buyers, making it a standout market in Spain.
Pressure in the €600,000 to €1 Million Segment
While the luxury segment thrived, the upper-mid price band of €600,000 to €1 million faced significant challenges, recording the largest national decline of 6%. This stark contrast emphasizes the unique position of the €1 million-plus market.
Major Cities – €600,000 to €1 Million Segment
The performance of this segment in major cities is telling:
| City | Demand Change |
|---|---|
| Bilbao | +38% |
| Alicante | +22% |
| San Sebastián | +22% |
| Madrid | −15% |
| Málaga | −18% |
Bilbao again led the way with a remarkable 38% increase, while Málaga and Madrid struggled, reflecting the broader pressures facing the upper-mid market.
The Wider Market Backdrop
The figures from Q1 2026 illustrate a stark divide in the Spanish housing market. With four out of five price brackets experiencing declines, the €1 million-plus segment stands apart as a beacon of growth.
| Price Bracket | Demand Change |
|---|---|
| Up to €210,000 | −3% |
| €210,000–€360,000 | −1% |
| €360,000–€600,000 | −2% |
| €600,000–€1 million | −6% |
| Over €1 million | +3% |
This concentration of growth at the top end raises questions about the sustainability of the luxury market’s performance and what it means for the broader real estate landscape in Spain.
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