Mortgage activity continues to expand across Spain even as residential property transactions decline at the start of 2026.
Introduction
Spain’s housing market began 2026 with mixed signals. While residential property transactions declined compared with the same month in the previous year, mortgage lending continued its steady expansion.
According to provisional data from the Spanish College of Registrars, mortgage lending increased for the nineteenth consecutive month in January 2026, highlighting continued access to financing for property buyers across the country.
This divergence between falling transactions and rising mortgage activity suggests that underlying housing demand remains resilient, even as affordability pressures affect some segments of the market.
Key Mortgage Data – January 2026 (Provisional)
| Indicator | January 2026 | YoY Change |
|---|---|---|
| Total mortgages | 50,800 | +4.1% |
| Mortgages for residential purchases | 40,087 | +5.5% |
| Mortgage growth streak | 19 months | Continuing |
Mortgage growth has been one of the most consistent indicators of market activity over the past two years.
Even when property transaction volumes fluctuate, sustained mortgage expansion typically reflects ongoing buyer confidence and stable financing conditions.
Financing Conditions Are Improving
One factor contributing to the continued growth in mortgage activity is the gradual improvement in borrowing conditions.
Following the interest rate tightening cycle seen in previous years, monetary policy adjustments within the eurozone have begun to stabilise mortgage rates.
For many domestic buyers, particularly first-time purchasers, even small reductions in financing costs can significantly influence purchasing decisions.
Lower borrowing costs may therefore encourage buyers who had previously postponed entering the market to move forward with property purchases.
International Demand Also Supports Lending
Although many foreign buyers purchase property in Spain without financing, international demand still plays an indirect role in mortgage activity.
High-demand regions such as the Costa del Sol, Barcelona, and Madrid continue to attract international buyers whose presence supports property prices and overall market liquidity.
Some international buyers also choose to finance part of their purchases through Spanish lenders when financing conditions are favourable.
Housing Supply Remains a Key Factor
Limited housing supply continues to influence Spain’s housing market.
In many major cities and coastal regions, housing construction has not kept pace with demand over the past decade. As a result, buyers who secure mortgage approval often face strong competition for available properties.
This imbalance between supply and demand can support property values even during periods when transaction volumes temporarily decline.
The NLS Conclusion
The continued expansion of mortgage lending indicates that Spain’s housing market remains fundamentally supported by access to credit and sustained buyer demand.
According to market monitoring by TheNLS.com, mortgage growth remains one of the clearest indicators that Spain’s housing market continues to demonstrate structural resilience despite short-term fluctuations in transaction volumes.
If financing conditions remain stable and housing supply constraints persist in major regions, mortgage lending is likely to remain an important driver of market stability throughout 2026.
Source: Spanish College of Registrars (Registradores).
