While much of Spain’s property market cooled during the first quarter of 2026, one segment continued to outperform. According to new data from Idealista, homes priced above €1 million were the only category to record an increase in buyer demand, highlighting the continued strength of Spain’s luxury property market.
Nationally, enquiries for homes valued at more than €1 million rose by 3%, while every other price bracket experienced a decline.
Palma among the strongest-performing luxury markets
Among Spain’s major cities, Palma de Mallorca emerged as one of the standout performers, with demand for luxury homes increasing by 19% during the first quarter of the year.
The strongest-performing cities in the €1 million-plus market were:
City | Change in demand |
Palma | +19% |
Bilbao | +19% |
San Sebastián | +15% |
Valencia | +10% |
Sevilla | +5% |
Madrid | +4% |
Barcelona | -14% |
Málaga | -19% |
While Palma and Bilbao recorded the highest increases, both Barcelona and Málaga experienced falling demand within the luxury sector.
Smaller cities also see significant growth
Several smaller cities recorded very large percentage increases in enquiries for luxury homes, although these figures are based on much smaller numbers of listings.
Notable increases included:
- Vitoria-Gasteiz: +385%
- Almería: +181%
- Girona: +147%
- Pamplona: +140%
These figures demonstrate that luxury demand is becoming more geographically diverse, rather than being concentrated solely in Spain’s traditional prime property markets.
Bilbao stands out across every price range
Bilbao was the only major city analysed to record higher buyer demand across every property price bracket during the first quarter of 2026.
Demand increased by:
- +29% for homes up to €210,000
- +25% for properties between €210,000 and €360,000
- +17% for homes priced between €360,000 and €600,000
- +38% for properties between €600,000 and €1 million
- +19% for homes above €1 million
The figures suggest that buyer confidence in Bilbao remains strong across both mainstream and premium housing markets.
Mid-market demand softens
Although luxury homes continued to attract buyers, demand weakened across the rest of Spain’s housing market.
The €600,000 to €1 million bracket experienced the largest nationwide decline, with buyer demand falling by 6%.
Among the major cities:
City | Change in demand (€600k–€1m) |
Bilbao | +38% |
Alicante | +22% |
San Sebastián | +22% |
Madrid | -15% |
Málaga | -18% |
Málaga recorded the steepest fall in this price category, while Bilbao once again led the market.
Spain’s property market by price range
Across Spain as a whole, only the luxury segment recorded growth during the first quarter of 2026.
Property price | Change in buyer demand |
Up to €210,000 | -3% |
€210,000–€360,000 | -1% |
€360,000–€600,000 | -2% |
€600,000–€1 million | -6% |
Over €1 million | +3% |
The figures highlight the resilience of high-net-worth buyers despite broader market uncertainty, with premium homes continuing to attract strong interest while activity slows across lower price brackets.
Source: Idealista market data.
Buying property in Spain?
Whether you’re purchasing a luxury villa, relocating to Spain or investing in real estate, understanding the tax implications before you buy can help you avoid costly surprises.
At Baleario, we advise buyers across Spain on:
- Tax planning before purchasing
- Spanish tax residency
- Non-resident tax (Modelo 210)
- Mortgage and finance support
- Ongoing accounting and tax advice
If you’re considering buying property in Spain, our team can help you understand your tax obligations and plan your purchase with confidence.
