Spain house prices to lead Europe

Spain’s house price outlook is set to stay hotter than much of Europe, according to a forecast from S&P Global Ratings. The agency expects prices in Spain to rise faster than in almost every other European country until 2029, with only Portugal projected to grow more in 2026. It forecasts a 9.1% increase in 2026, followed by 7.4% in 2027, 6.2% in 2028 and 5.4% in 2029, with the pace slowing gradually but still outpacing the rest of the region. The report attributes the momentum to demand outstripping supply, despite government measures to improve affordability. S&P links this to strong eurozone labor-market conditions, ongoing job creation, and wage growth, while immigration adds to buyer numbers. On the supply side, residential construction investment has been largely stagnant since early 2019, with administrative barriers and lengthy permitting processes cited as key reasons. Compared with broader Europe—about 4% in 2026 and just over 3% in 2027—Spain remains a standout, while Germany and France are forecast to grow only around 1.2% and 1.4% respectively.