The Spanish real estate market recorded another decline in home sales in July after the increase seen in June. A total of 61,417 property transactions were completed during the month, 5.1% fewer than in July 2025. Today, at Quinta Avenida Real Estate, we take a closer look at the latest figures, the performance of new-build homes and second-hand properties, and the situation in the Valencian Community.
Home Sales Fall 5.1% in July
According to data from Spain’s National Statistics Institute (INE), 61,417 homes were sold in July, representing a 5.1% year-on-year decline.
The decrease came after the 1.6% annual increase recorded in June. However, July’s figure remains significant in terms of overall activity, as it represents the highest number of home sales recorded since October 2025.
At the same time, transactions increased by 3.6% compared with June. This means that the annual decline does not represent a halt in activity across the real estate market.
Second-Hand Homes Account for Most Transactions
The performance differed between the various types of property.
Transactions involving new-build homes fell by 1.4% year-on-year, reaching 13,289 sales. Meanwhile, second-hand properties recorded a larger decline of 6.1%, with 48,128 transactions.
As a result, existing homes continue to account for the majority of property sales in Spain.
On a monthly basis, however, both segments increased compared with June. Sales of second-hand homes rose by 3.5%, while transactions involving new-build properties increased by 4.1%.
The Valencian Community Records 9,487 Home Sales
The Valencian Community remains one of Spain’s largest residential markets in terms of transaction volume.
In July, the region recorded 9,487 home sales, behind only Andalusia, with 12,239 transactions, and Catalonia, with 10,075.
This volume confirms the importance of the Valencian Community within the Spanish real estate market, although prices, available housing supply, and access to financing continue to influence activity.
Eleven Autonomous Communities Record Fewer Home Sales
The July decline was not uniform across Spain. Of the country’s 17 autonomous communities, 11 recorded fewer home sales than in July 2025.
The largest year-on-year declines were recorded in Asturias, at 15.2%, followed by the Balearic Islands at 14.3% and the Basque Country at 12.4%. Aragón (-11.4%), Madrid (-11.3%) and Cantabria (-10.2%) also recorded double-digit decreases.
By contrast, six autonomous communities registered annual increases. Navarra recorded the strongest growth at 26.4%, followed by Galicia at 10.8% and Castilla y León at 9.7%.
The Spanish Real Estate Market Has Fallen 3% Through July
Looking at the first seven months of 2026 as a whole, home sales are down 3% compared with the same period in 2025.
The decline affects both new-build housing, where transactions have fallen by 2.6%, and second-hand homes, which have recorded a 3.1% decrease.
These figures indicate a moderation in activity after several years of growth, although the overall number of transactions remains substantial.
Free-Market and Protected Housing Follow Different Trends
INE data also shows differences between free-market housing and protected housing.
In July, 93.8% of homes transferred through sales were free-market properties, while 6.2% were protected housing.
Transactions involving free-market homes reached 57,607, down 4.4% from July 2025. Meanwhile, sales of protected homes fell by 14.4%, to 3,810 transactions.
This difference shows that the evolution of the residential market is not the same across all segments, particularly in a context where prices and access to housing remain important factors for buyers.
Prices and Financing Continue to Influence Demand
The evolution of home sales is linked to several factors, including property prices, household savings and access to mortgage financing.
Higher prices can limit access for some buyers, while the shortage of available homes continues to be an important factor in areas with strong demand.
At the same time, financing remains particularly relevant for buyers who need a mortgage to complete a property purchase.
As a result, changes in property prices and lending conditions will remain important factors in determining how the Spanish real estate market develops over the coming months.
What Could Happen to the Real Estate Market in the Coming Months?
July’s figures point to a market with a more moderate pace of activity, although the overall volume of transactions remains significant.
Future developments will depend on factors such as property prices, available housing supply, buyers’ purchasing power and financing conditions.
There are also significant differences between regions. While some autonomous communities continue to record increases in transactions, others are experiencing substantial declines. This highlights how differently the real estate market can behave depending on location and type of property.
Conclusion: Home Sales Enter a More Moderate Phase
Home sales fell again in July, with 61,417 transactions representing a 5.1% year-on-year decline. However, sales increased by 3.6% compared with June, and the overall level of activity remains substantial.
The Valencian Community, with 9,487 transactions, continues to rank among Spain’s main residential markets. In the coming months, property prices, housing supply and access to financing will be key factors in determining how the sector evolves.
At Quinta Avenida Real Estate, we help you understand market opportunities and find the home that best suits your needs. If you want to sell, buy, or rent a property, have questions about a home, or need professional advice, visit our website and get in touch with our team.
