Prices Rise. Real Value Requires a Trained Eye

Written By Francisco Verdu A. | Arquitecto MArch

Date: 7 October 2026, 15:18 CEST (Madrid)

INTRODUCTION

This week, one signal deserves attention: second-hand home prices are still rising in Spain, but the pace is moderating. In the third quarter, annual growth was 11.8%, compared with 16.6% a year earlier [1].

Madrid tells a different story. Prices in the capital remain high, but September ended with a slight monthly adjustment and much more moderate annual growth [2]. For me, this reinforces a simple idea: average market prices are only a reference; micro-location and the quality of the asset require a precise assessment.

At the same time, the Government has approved a new package of 21 housing measures affecting financing, rentals, taxation and supply [3]. Madrid is also celebrating its Architecture Week, a good reason to look at the city with more attentive eyes [4].

When markets stop moving in the same direction, judgement starts to matter more than the trend.

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Top 3 News 🗞

1. Prices are still rising, but losing momentum

Key details

Second-hand homes in Spain reached €2,930/m² in the third quarter, 11.8% higher than a year earlier [1]. Growth remains strong, but has moderated from the 16.6% annual increase recorded in the same period of 2025 [1].

Implications

I would not interpret a slowdown as an automatic reason to wait. Before deciding, I would separate the general movement of the market from the criteria that genuinely protect a purchase: location, depth of demand, architectural quality and a sensible entry price. For a family, the best decision remains one that works both financially and in everyday life.

2. Madrid moves away from the national pace

Key details

The asking price of second-hand homes in Madrid stood at €6,458/m² in September, 0.2% lower than in August and 2.4% higher than a year earlier [2]. The figure is 2.4% below the record reached in April 2026 [2].

Implications

This data reminds me that when buying in Madrid, not everything is worth the same. Selecting the right neighbourhood, street and building matters more; then I would assess natural light, orientation, noise, layout, condition and future demand. When location and characteristics are non-negotiable, we have to accept that price is the variable that needs to adapt.

3. Housing enters a new regulatory phase

Key details

On 6 October, the Government approved 21 housing measures, including a €10 billion financing facility for interest-free loans of up to €50,000 towards the purchase of a first home [3]. The package also addresses rentals, taxation, affordable housing and new supply [3].

Implications

I would not change a wealth strategy because of a political headline, but I would review any buy-to-let investment against the updated legal framework. Regulation is part of the asset: it affects flexibility, cash flow and the future exit. The more complex the transaction, the more important it is for the process to remain simple to understand and execute.

Building Wealth

Property market and capital allocation

Capital allocation: With Spain still recording double-digit growth in second-hand housing while Madrid is advancing at a much slower pace, I would avoid applying the same thesis to every market [1][2]. I would first define which two variables are genuinely non-negotiable — location, characteristics or budget — and allow the third to adapt.

Financing and liquidity: The new public facility for first-home purchases confirms that financing is once again central to the housing debate [3]. For established family wealth, my priority would still be to preserve room for manoeuvre: a sound financial structure allows you to wait, negotiate and absorb unexpected costs without compromising the decision.

Supply, Demand and product: In Marbella, asking prices reached €5,967/m² in September, 3.2% higher year-on-year; in Nagüeles-Golden Mile they reached €8,331/m², up 2.1% annually [5]. These figures reinforce something I consider essential: within the same city, scarcity and value behave differently. I would look for the combination of an irreplaceable location, natural light, privacy, a good floor plan and enduring architecture.

Enjoying Life

Trends in design, culture and wellbeing

Design, focused on the senses, wellbeing and health: Madrid is celebrating its Architecture Week until 13 October, with walks that invite us to notice details, façades and spaces we normally pass by [4]. I would apply the same exercise at home: notice how the light enters, what we hear, how air moves and which materials we touch every day.

Beauty and Art at home: I like to think of the home as a sanctuary rather than a catalogue. Fewer, better-chosen pieces, and spaces where architecture, furniture and art create a coherent atmosphere that encourages conversation, rest and time together.

Lifestyle Madrid, Marbella, Sotogrande: Madrid offers urban intensity and an extraordinary cultural density; Marbella and Sotogrande allow a more direct relationship with the landscape and outdoor life. Rather than choosing between city and coast, I would ask which rhythm of life we want to protect and which property can support it for many years.

Final Thoughts

This week confirms that the market can no longer be explained by a single isolated euro-per-square-metre figure: Spain continues to rise strongly, Madrid is moderating, Marbella follows its own dynamics and regulation is changing again [1][2][3][5].

My recommendation is simple: before deciding, separate trend from value and ask what characteristic makes this property exceptional even if the market stops rising for a few years?

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Almagro | Calle Blanca de Navarra | €3,220,000 | 223 m² | 4th floor | 3 beds + 3 baths | to renovate

Francisco Verdu A. | Arquitecto MArch

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El precio sube. El valor real hay que saber reconocerlo