Spain's GDP grows 0.7% and construction 5.2%: what it means for buying property

Spain's GDP grew 0.7% in the second quarter of 2026, one tenth of a point more than in the previous quarter, and 2.7% year on year, according to the National Accounts advance estimate from Spain's National Statistics Institute. With this figure the economy strings together 24 consecutive quarters of quarter-on-quarter growth. And there is one number in the breakdown that speaks directly to the property market: construction investment is up 5.2% year on year.

A GDP figure feels remote when what you are actually looking at is an apartment on the Costa del Sol, but it is not. House prices do not move on their own: they move with employment, with household income and with the banks' willingness to lend. All of that is precisely what national accounts measure.

How much did the Spanish economy grow in the second quarter of 2026?

Growth is accelerating slightly and the run is a long one: 24 consecutive quarters in positive territory quarter on quarter and 21 year on year. The cumulative figure for the year, what economists call the carry over, already stands at 2.2%, putting the official full-year forecast of 2.6% within reach.

What is driving the growth?

Essentially, what happens at home. Domestic demand contributed 0.6 points to the quarter's growth and 3.3 points to the annual figure, while external demand subtracted 0.6 points in annual terms. In other words, Spain is growing on domestic consumption and investment, not on exports.

The Ministry of Economy stresses that the country continues to lead the major eurozone economies, in an international context that remains unstable. Beyond the political headline, what matters for the sector is that household consumption is growing 3.2% year on year on the back of a solid labour market, and that investment is holding its pace.

What does GDP have to do with house prices?

The chain is fairly direct. A growing economy creates jobs, jobs create income, income sustains borrowing capacity, and that capacity is what allows mortgages to be signed. When household consumption advances 3.2%, what the figure is saying is that families have both headroom and confidence, the two preconditions for any large purchase decision.

The other end of the chain is supply. Construction investment growing 5.2% year on year confirms that work is genuinely under way, not merely intended. It fits with the sharp rebound in new-build permits already observed and means that new product will reach the market over the next two or three years.

The other side: growing is not the same as being able to buy

This is where it pays not to keep only the pretty half. An economy can grow while access to housing gets worse, and that is exactly what is happening along the Spanish coast, where buying effort already absorbs around 40% of a household's disposable income against the 35% considered a reasonable threshold. GDP is rising, yes, but house prices in stretched areas are rising faster than wages.

Put another way: the strong macro data explains why there is demand and why banks are lending, not why housing is expensive. They are two separate conversations and it is worth keeping them apart when making a purchase decision.

What this means if you are buying on the Costa del Sol

• The financing backdrop is favourable: with employment and consumption growing, lenders are keeping their appetite for granting mortgages.
• Do not expect a price correction for macroeconomic reasons: an economy in its twenty-fourth quarter of growth does not usually bring house price falls.
• You can expect more supply in the medium term: construction is growing 5.2% and that product will be delivered in two or three years.
• Your real limit is not set by GDP, it is set by your monthly payment: work out the effort against your own income rather than the national average.

And as always, national macro data does not buy specific flats. According to our tracking of active supply in August 2026, the price per square metre on the Costa del Sol ranges from €5,952 in Marbella to €3,231 in Manilva, with Estepona at €4,674 and Mijas at €4,182. The same GDP figure coexists with local markets behaving in very different ways.

The underlying read is reassuring without being complacent: the economy is supportive, financing is supportive and supply is starting to move, but access remains the weak point. At EVS PROPERTY GROUP we work at exactly that intersection between the headline figure and each municipality's actual numbers. If you are weighing up a purchase on the Costa del Sol, get in touch and we will look at real figures.

Frequently asked questions