Registered home sales in Spain dropped by 2.2% in March compared with the same month in 2025, with 61,295 transactions recorded, largely due to a sharp decline in the sale of newly built properties.
The slowdown had already been anticipated by property analysts, and figures released on Monday by the National Statistics Institute (INE) confirmed that the housing market has now levelled off for a third consecutive month. The sector is no longer reaching the record levels seen at the end of 2025, when around 750,000 homes changed hands — the highest annual total since 2007.
The March figures continue the downward pattern already seen in January and February, meaning home sales were down by 2.6% overall during the first quarter of the year. Even so, activity showed a modest monthly recovery, with transactions rising by 2.7% compared with February.
The year-on-year fall was mainly driven by the market for new-build homes, where sales dropped by 10.2% to 13,057 transactions. Meanwhile, existing home sales edged up by 0.2%, reaching 48,238 — the strongest March figure for second-hand housing since records began in 2007.
Protected or social housing accounted for 6.2% of all homes sold in March. Sales in this category declined by 10.4% year-on-year, totalling 3,795 transactions. ALSO READ: Spanish government pledges €23bn for ‘Spain is growing’ fund to help tackle housing crisis.
At regional level, housing sales increased in eight parts of Spain compared with March last year, while nine regions recorded declines. Cantabria saw the steepest fall, with sales dropping by 15.4%. ALSO READ: Spain to impose tougher rental regulations, including caps on room rents and limits on seasonal lets.
The largest rises were registered in Castilla-La Mancha, where transactions climbed by 11.5%, followed by Navarre (+8.2%) and La Rioja (+5.2%). Andalusia continued to lead the country in overall sales volume, with 12,494 transactions completed during March.
Despite the weaker start to the year, property sector experts say there is little cause for alarm, arguing that the market is simply returning to more ‘normal’ levels after several years of exceptional activity. They point out that sales are still comfortably above 60,000 per month, which they say reflects continued market strength.
Major property portals believe the housing market is entering a phase of stabilisation after five years of unusually high sales figures, with the shortage of available housing supply seen as a key factor behind the recent slowdown. ALSO READ: Spain to spend €1.3 billion on ‘industrial construction of social housing’.
Analysts also warn that geopolitical tensions — including the ongoing conflict in the Middle East — could influence the market in the coming months through their effect on inflation. ALSO READ: Spain economy weathers Middle East turmoil with steady growth.
They caution that if inflation begins to rise again, the European Central Bank (ECB) may be forced to increase interest rates from their current level of 2%, pushing mortgage costs higher and making it even more difficult for many people to access housing, especially younger buyers already struggling with affordability.
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Estadística de Transmisiones de Derechos de la Propiedad (ETDP). Marzo 2026 @es_INE
— INE España (@es_INE) May 18, 2026
Las compraventas de #viviendas inscritas disminuyeron un 2,2% respecto a marzo de 2025
Nota de prensa
👇https://t.co/Mz2cQsWjbX
Resultados➡️ https://t.co/N3RMsAdP9A#INE pic.twitter.com/ATqj6Qjonu
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