Spain | Outlook and electricity in the real estate sector. July 2026

Summary

Housing demand will remain strong despite the decline in home sales in 2026 (-7.3%), but housing supply will remain insufficient, continuing to put upward pressure on prices. Grid congestion and growing competition for electricity access are already delaying new residential and economic developments.

Key points

• Key points:
• Building permits are expected to increase by 10.1% in 2026 and 12.6% in 2027, but housing supply will remain below household formation, further widening the housing deficit.
• Home sales are projected to decline by 7.3% in 2026, while house prices are expected to rise by 12.0%, reflecting the persistent shortage of housing supply.
• Electricity demand could increase by 45% by 2030, while expanding the grid may take between five and eight years, increasing the risk of network bottlenecks.
• Investment in electricity grids, a more efficient allocation of network capacity, and stronger institutional coordination will be essential to prevent future bottlenecks.

Geographies

Topics

Tags