Property prices across Andalusia have hit a peak amid growing social unrest and a political crisis that triggered a Spanish general election.
Demonstrations over severe housing shortages and unaffordable rents escalated following the eviction of 87-year-old Maricarmen Abascal, which prompted a protest encampment at Puerta del Sol in Madrid. Within days, replica encampments and protests spread across major Andalusian cities, including Seville, Málaga, Cádiz, and Granada.
The street pressure coincided with the rejection in Congress of two key housing decrees introduced by Prime Minister Pedro Sánchez's government. That parliamentary defeat precipitated the calling of snap general elections on Monday for 29 November 2026. On Tuesday, 6 October 2026, the central government re-approved modified versions of both housing decrees while already on the election campaign trail.
Because the Cortes Generales has been dissolved for the upcoming election, the new texts will now go before parliament's Permanent Deputation. In this body, the balance of power shifts, allowing left-wing parties and the Basque Nationalist Party (PNV) to pass legislation without relying on Junts per Catalunya. Junts had previously joined the conservative People's Party (PP) and Vox to defeat the original bills in the full parliamentary plenary.
PNV representatives confirmed that they will support the government's tenant protection decree in the Permanent Deputation, but they maintain their opposition to the second housing decree.
Surging purchase prices across Andalusian provinces
Despite the ongoing legislative maneuvering, real estate values in Andalusia remain near record highs due to chronic housing shortages and a lack of officially protected social housing, known in Spain as VPO (Vivienda de Protección Oficial). According to the latest quarterly report from real estate portal pisos.com published on Tuesday, second-hand house prices in Andalusia averaged 1,889 euros per square metre in September 2026. This represents a 0.34 per cent increase compared to June and a 2.33 per cent rise compared to September 2025.
Málaga remains the most expensive province in the region for property purchases, averaging 3,502 euros per square metre. In Málaga city, prices reached 3,955 euros per square metre, making it the fifth most expensive provincial capital in Spain. Seville province recorded an average price of 1,767 euros per square metre across the province and 2,623 euros per square metre in its capital city.
By contrast, Jaén recorded the lowest property values in Andalusia, averaging 780 euros per square metre across the province and 1,274 euros per square metre in its capital city.
Granada province registered the highest annual price increase in Andalusia, rising 4.94 per cent year-on-year to 1,581 euros per square metre. Data from pisos.com showed this was the most intense provincial increase recorded anywhere in Spain. In Granada city, prices rose 4.40 per cent year-on-year to 2,584 euros per square metre, marking the third highest capital city increase nationally.
Conversely, Almería city recorded the sharpest quarterly price drop in the country, falling 1.94 per cent to 1,611 euros per square metre.
Rental market pressures and coastal property trends
The rental sector displays a similar pattern of short-term deceleration alongside substantial long-term growth. Figures from property portal Fotocasa indicate that average monthly rents in Andalusia fell 3.2 per cent during the third quarter of 2026 to 11.94 euros per square metre. However, rental costs remain 7.1 per cent higher than in September 2025.
Although 61 per cent of analyzed municipalities experienced quarterly rental declines led by Huelva, Cádiz, and Jaén, rental rates in most locations remain higher than in recent years. In contrast to regional quarterly declines, Málaga city recorded a quarterly rent increase of 0.4 per cent, while Cádiz city rose 3.3 per cent.
Rental costs remain heavily concentrated in major urban centers and coastal resort towns. Málaga city recorded average monthly rents of 16.61 euros per square metre. Seville city followed at 14.24 euros per square metre, Cádiz city at 13.12 euros, and Granada city at 10.73 euros.
Along the Costa del Sol, rents in Estepona and Marbella approached 19.50 euros per square metre per month. Nine municipalities in Andalusia now exceed 15 euros per square metre for monthly rent, eight of which are located in Málaga province.
Borrowing limits and long-term price escalation
Analysts at pisos.com reported that buyers are reaching the limit of their financial capacity. The portal observed that prospective homeowners are increasingly delaying transactions, opting for smaller properties, moving search areas to surrounding towns, taking on larger mortgage loans, or relying on financial assistance from family members.
Market experts stated that the sector is experiencing a gradual deceleration dictated by borrowing constraints and an insufficient housing supply rather than a sharp price drop.
The current affordability crisis follows years of rapid price growth across the region. According to data from real estate platform Idealista, rental prices across Andalusian capital cities have surged by nearly 70 per cent since 2018. Across Andalusian provinces, average rental rates have increased by approximately 40 per cent over the same period.
This sustained cost escalation has driven tens of thousands of residents into street demonstrations and pushed housing policy to the center of Spain's political agenda as parties enter the general election campaign.
Andalusia is Spain's most populous autonomous region, located in the south of the Iberian Peninsula. Housing access has become a central political topic across Spain, where social housing construction has historically lagged behind demand and regional administrations hold key powers over spatial planning and residential development.
