Spanish property prices are rising three times faster than wages

Property values have risen by 36.3% in three years, while salaries have increased by just 12.3%, making it harder for buyers to save for a deposit

Buying a property in Spain is getting harder as prices continue to rise much faster than wages. Property prices have gone up by 36.3% over the past three years, compared with a 12.3% increase in salaries, according to figures from Spain's National Statistics Institute, INE, and other official data.

The difference is also clear when compared with the cost of living. Consumer prices have risen by 9.2% over the same period, meaning property prices have moved well ahead of inflation. And there is little sign of prices coming down.

Property prices keep climbing

Property prices in Spain have now risen for 49 quarters in a row. Prices have been going up without a break since 2014 and have more than doubled over that period.

Between the second quarter of 2025 and the same period this year, property prices rose by 12.2%. That was down slightly from the 12.9% increase recorded at the start of 2026, but it remains close to the highest rate recorded by the INE. The record was 13.1% in early 2007, just before the property crash.

Wages are nowhere near that level of growth. The average salary increase agreed through collective bargaining this year is just over 3%. The gap becomes even clearer when looking back over the past decade. Since 2016, salaries have risen by 36.1%, while property prices have jumped by 91.1%.

The amount of income needed to buy a home has also increased. In early 2016, the price of an average property was equal to around 6.7 years of gross household income. In 2026, it has risen above eight years.

Buyers feel the pressure

There are signs that the rising prices are beginning to affect the number of people able to buy. Some 347,464 properties were sold between January and June this year, 2.6% fewer than during the same period in 2025. At the same time, more buyers are turning to mortgages. Almost 75% of property purchases are now financed with a mortgage, compared with 68% last year.

The shortage of homes is a big part of the problem. Spain needs more than 200,000 new homes each year to keep up with the number of new households being formed, but around 100,000 new properties are being built.

That gap between supply and demand is pushing prices higher and is also changing where people look for a home. Some buyers are now having to look at smaller properties or cheaper areas, while others are putting off their plans until they can save more.

And as property prices continue to rise faster than wages, saving enough for a deposit is becoming one of the biggest barriers to buying a home in Spain.

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