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Inside Spain: The Fight To Stop Family-Run Shops From Closing Down

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Alex Dunham

Alex Dunham – alex.dunham@thelocal.com

Published: 16 May, 2026 CET. Updated: Sat 16 May 2026 10:10 CET

Inside Spain: The fight to stop family-run shops from closing down
Become a regular at your local ‘carniceria’ (butcher’s) in Spain, it’ll really make a difference. Photo: Belen Savio/Pexels

In this week’s Inside Spain, we look at how the country’s small neighbourhood stores are struggling to survive against the likes of Amazon, and why this matters so much for the Spanish lifestyle we all appreciate.

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Are Spain’s Big-City Housing Markets Starting To Cool?

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House prices in Spain’s biggest cities may finally be getting so expensive that buyers are starting to back away — and that could mark the beginning of a shift in market dynamics.

According to the latest figures from property portal Idealista, the number of homes for sale increased during the first quarter of 2026 in several of Spain’s largest and most dynamic cities, even as housing supply continued to shrink across most of the country.

The reason? In the words of Idealista’s spokesman Francisco Iñareta, prices in some markets have become “unreachable” for part of the demand.

Madrid saw the biggest increase in homes for sale, with listings up 17% year-on-year in Q1. Valencia followed with a 13% rise, whilst Barcelona saw supply increase by 6%. Sevilla and Málaga also recorded increases of 5% and 3% respectively.

That stands in stark contrast to the national picture. Across Spain as a whole, the supply of homes for sale fell by 10% compared to the same period last year.

In other words, the housing market now appears to be moving at two speeds.

When high prices start destroying demand

The common factor in these cities is rapid price growth.

According to Idealista, the average asking price in Madrid has now reached almost €6,000/m², meaning a typical 80m² flat costs around €477,000. In Barcelona the equivalent figure is around €418,000.

Valencia and Málaga, traditionally seen as more affordable alternatives, have also experienced double-digit annual price growth, with asking prices rising by 14.4% and 12.1% respectively over the last year.

At some point, even better-off buyers start hesitating when prices rise faster than incomes, financing costs remain relatively high, and buyers begin to question value for money.

That appears to be what is starting to happen in some of Spain’s hottest urban markets.

The increase in supply doesn’t necessarily mean there are suddenly lots of homes available. In many cases it probably just means properties are taking longer to sell because fewer buyers can afford — or are willing to pay — current asking prices.

Could this lead to price stabilisation?

Idealista argues that the withdrawal of some buyers is reducing pressure on supply, which could eventually help stabilise prices.

That doesn’t mean prices are about to collapse. Spain still suffers from chronic housing shortages in many desirable urban areas, especially where planning restrictions, lack of land, and sluggish construction constrain supply.

But it may signal the beginning of a more balanced market in some cities after years of relentless seller advantage.

For buyers, particularly foreign buyers used to competitive bidding wars and vanishing stock, this could eventually translate into more choice and slightly greater negotiating power.

For sellers, however, the message is clear: the days of simply putting almost anything on the market at any price and expecting buyers to queue round the block may be starting to fade in some locations. Pricing strategy is becoming important again.


Thinking of selling a property in Spain?

A successful sale starts before you put your property on the market — and before you even speak to estate agents or lawyers. The first step is to understand what you own, what your property is worth, what sort of market you are selling into, how the sales process works, who you can trust, and what strategy makes most sense for you.

Too often, owners enter the process without independent advice and end up being steered by agents or others whose priorities may not fully align with their own. SPI offers expert guidance designed to put your interests first, helping you get organised, make sense of the market, and prepare for sale with a clear plan and personalised strategy.

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