Spain's Property Market: Are Sales Really Falling?

There has been a lot of talk recently about a slowdown in the Spanish property market.

And the numbers do show a change.

According to the latest figures from the Spanish Land Registrars, residential property sales fell 7.7% year-on-year in July 2026 — the biggest annual decline in more than two years.

In fact, every month of 2026 apart from June has recorded a year-on-year fall in transactions.

But here's the interesting part… This doesn't necessarily mean Spain's property market is in trouble.

Prices are continuing to rise. And according to BBVA Research, the bigger issue appears to be a lack of available housing rather than a collapse in demand.

So we have an interesting situation: fewer transactions, rising property prices, limited housing supply, continued international demand, and increasing pressure on affordability.

And then there is the international buyer.

Spain remains hugely attractive to overseas purchasers — particularly in areas such as the Costa del Sol, Costa Blanca, Balearic Islands, Canary Islands and major cities.

For anyone buying property internationally, the headline property price is only part of the equation. Currency movements can have a significant impact on the actual cost of the purchase.

A €1 million property is €1 million. But what that €1 million costs a buyer in GBP, USD or CAD can change considerably depending on the exchange rate.

So perhaps the real question isn't simply: “Are Spanish property sales falling?” It's: “What is happening to demand, supply, prices and purchasing power — and what does that mean for international buyers?”

Spain's property market in 2026 certainly looks different from 2025. And there is plenty more to watch over the rest of the year.

At Pure Currencies, we help private and corporate clients with international FX and cross-border payments, including clients buying property in Spain and across other international markets. If you're planning a property purchase abroad, we're happy to have a conversation about your requirements.

This article is for general information only and should not be considered financial, tax, legal or investment advice. Requirements can vary according to individual circumstances and may change. Always seek appropriate professional advice before making a property or financial decision.