Forecast for 2026
According to the “Luxury Outlook 2026” report presented by Spain Sotheby’s International Realty, in 2026 the luxury real estate market in Spain will maintain a steady growth pace. The expected annual price increase is 5–10%, depending on the location and quality of the asset. This momentum will allow the “prime” and “super-prime” segments to continue outperforming the overall residential real estate market in terms of sales volume and prices.
The study highlights the south and east of Spain among European markets with the greatest potential in luxury real estate, supported by a combination of safety, legal stability, and a lifestyle highly valued by foreign investors. Over the past two years, the luxury real estate segment has posted annual growth of 6–8%, and according to forecasts, this trend will strengthen in 2026.
The role of foreign buyers
More than 70% of luxury real estate transactions carried out by Spain Sotheby’s International Realty are already accounted for by foreign buyers. In coastal and island markets, this figure exceeds 80%, increasing upward pressure on prices in the most in-demand regions.
Who buys and what drives demand
The company emphasizes that the largest wealth transfer in history from one generation to the next, along with growing international capital mobility, is fueling global demand for luxury residential properties. The buyer profile is also changing and contributing to a revaluation of the luxury product: the average age has fallen by almost ten years in recent years, while “millennials” and “Generation X” are playing an increasingly important role, preferring modern housing and new developments, including off-plan purchases. This dynamic helps partially ease the shortage of “premium” product in certain markets, but continues to keep pressure on prices in the most established locations.
Formats with the strongest revaluation potential
Among luxury housing types with the highest potential for revaluation, the report highlights:
- “branded residences”, the number of projects of which has increased by more than 20% over the past three years, and which may be priced 30% higher than comparable non-branded assets.
- As a new trend, it also notes high-end “senior living homes”. This trend is driven by foreign buyers aged 60+, who already account for more than 18% of demand in some high-end markets.
