The Spanish mortgage market remains strong – buying activity continues on the Costa Blanca

The Spanish housing market has shown an interesting trend at the beginning of 2026. Although the total number of property transactions is no longer growing at the same pace as in previous years, demand for mortgages remains strong.

According to Spain’s National Statistics Institute (INE), a total of 131,554 mortgages were granted between January and March 2026, representing an increase of nearly 10% compared to the same period last year. This is the highest first-quarter figure recorded in more than 15 years.

Buying activity remains strong – especially among foreign buyers

On the Costa Blanca, market developments are clearly visible. Many buyers remain active, and international clients in particular continue to use mortgage financing to purchase property.

Although property prices have increased, demand has not slowed significantly. On the contrary, financing solutions continue to make homeownership possible for many buyers.

The average mortgage amount is increasing

During the first quarter, the average mortgage amounted to approximately €174,000, highlighting the continued rise in property prices, especially in popular coastal areas.

Buyers require larger loans than before, helping to keep mortgage volumes at a high level.

Interest rates remain stable

One of the key factors supporting the market has been the stability of interest rates. In March, the average mortgage rate stood at 2.84%, which remains a reasonable level from a historical perspective.

This has helped maintain strong demand for housing despite economic uncertainty.

What does this mean for buyers in Spain?

From Camiro’s perspective, this development means that:

• Buying property remains active and achievable.
• Financing is still available on reasonable terms.
• Competition for quality properties continues.
• Fast decision-making is becoming increasingly important.

Especially in areas such as Torrevieja and Orihuela Costa, attractive properties tend to sell quickly, favouring prepared buyers.

Summary

The Spanish mortgage market demonstrates that demand has not disappeared—it has simply evolved. Purchasing decisions are increasingly supported by financing, and market activity remains strong, particularly in the most sought-after areas of the Costa Blanca.

Camiro continuously monitors market developments and helps clients find the best opportunities for permanent living, holiday homes, and property investment.

You can browse our current property listings through the following link