The average cost of long-term housing rentals in Spain reached a historic high of EUR15 per square meter per month in April 2026, according to the Idealista portal.
According to analysts, rents have risen by 5.2% over the past year. However, the growth rate has been the most moderate since the summer of 2022, indicating a gradual slowdown in the market following several years of sharp rate increases.
Despite the slowdown, the market remains tight. The main reason is the persistent gap between supply and demand. In major cities, tourist regions, and university centers, demand is driven by local renters, foreign workers, students, digital nomads, and short-term rentals. At the same time, new supply is entering the market slowly, and some landlords prefer tourist rentals over long-term contracts.
For tenants, record-high prices mean housing is becoming even less affordable. The problem is particularly acute in Madrid, Barcelona, Valencia, Málaga, and the Balearic and Canary Islands, where rental demand is driven not only by domestic migration but also by foreigners. According to Idealista, rents in Spain rose to EUR15 per square meter in April, though no longer at the double-digit rates seen in previous years.
The migration factor remains one of the key drivers of the market. According to data from Spain’s National Institute of Statistics, as of January 1, 2025, the largest groups of foreigners in the country were citizens of Morocco—968,999 people—Colombia—676,534—and Romania—609,270. Other major groups include immigrants from Venezuela, Italy, China, Peru, the United Kingdom, Ukraine, and other countries.
In 2024, the number of Colombian citizens grew the fastest—by 98,057 people—followed by Venezuelans—by 52,555— and Morocco—by 48,306. At the same time, the number of Ukrainian citizens, according to INE data, decreased by 7,907 people, which may be due to changes in residency status, the relocation of some Ukrainians to other countries, or naturalization.
The influx of foreigners is driving up demand for rentals, particularly in cities with job opportunities, universities, and a developed service sector. In the fourth quarter of 2025, the main groups of new immigrants to Spain were citizens of Colombia, Venezuela, and Morocco.
Investment demand is creating additional pressure on the market. Foreign homebuyers in Spain pay significantly more than locals: in the second half of 2025, non-residents purchased homes at an average of EUR 3,242 per square meter, foreign residents at EUR 1,963, and Spanish citizens at EUR 1,839. This also affects the rental market, as investment purchases are often aimed at renting out the property.
Thus, Spain faces a double challenge: rents have already reached record levels, but a structural supply shortage does not yet allow for a rapid decline in prices. Even a slowdown in annual growth to 5.2% does not signal a market reversal, but rather indicates a shift from sharp price increases to a more stable, though still expensive, level of rents.
According to Serbian Economist, the housing market in neighboring Romania continues to see price growth at the start of 2026, although the pace now appears more moderate than during the post-pandemic surge. According to Eurostat, the annual growth in housing prices in Romania at the end of 2025 was about 6.7%, which was higher than the EU average.
Bucharest remains the main market hub, but high prices persist in the largest regional cities as well. According to Romania Insider, in February 2026, two districts in the capital had already surpassed Cluj-Napoca in terms of price per square meter, while Cluj itself remained at approximately €3,300 per square meter. For Bucharest, research and market surveys indicate a city benchmark of €2,236 per square meter in February 2026.
In terms of transactions, the start of 2026 was uneven. In January, 24,598 real estate transactions were registered nationwide, which was below the level of January 2025, and apartment transactions fell by 25% nationwide and by 22% in Bucharest, according to Storia’s analysis based on ANCPI data. By February, the market had already picked up noticeably: the number of transactions rose to 44,427, and Bucharest once again became the country’s largest housing market.
The key trend at the start of 2026 is that the market remains active, but buyers have become more cautious. In its 2026 review, CBRE notes that Romanian buyers dominated the transaction mix at the end of 2025 and accounted for about 31% of the total investment volume for the year, while broader market reviews describe demand as “cautiously positive”: buyers remain active but are taking longer to make decisions and are focused on properly valued properties in good locations.
From a pricing perspective, the market can no longer be called cheap, even by regional standards. Colliers noted at the end of 2025 that prices in Romania’s largest cities had risen by 60–90% over six years, and in Cluj by approximately 100%, while in Bucharest the number of building permits had fallen by 45% over three years, further limiting supply.
Another important consideration for buyers and investors is that the Romanian market is becoming more demanding regarding transaction structures and financing. According to Legal 500, the sector is entering a more “disciplined” phase in 2026, where decisions are more strongly influenced by borrowing costs, the regulatory environment, and the quality of documentation. The OECD also expects only a moderate acceleration in economic growth for Romania in 2026 following a weak 2025, which means the housing market will increasingly depend on household incomes and mortgage availability, rather than just on the momentum of growth.
As for foreigners, no recent official statistics specifically regarding homebuyers by nationality at the beginning of 2026 could be found in open sources. Therefore, it is more accurate to distinguish between the market presence of foreigners and the market of foreign buyers. According to OECD data, in 2024, 52,000 new immigrants in Romania received residence permits valid for more than 12 months, and the largest groups of immigrants in the country in 2024–2025 were linked to Ukraine, Italy, Spain, Moldova, and Turkey. This is not the same as homebuyers, but it shows which foreign groups are currently most prominent in the country and potentially drive part of the demand for renting and buying real estate.
There has also been a noticeable increase in labor migration from Asia. The OECD notes that among new arrivals in 2023–2025, the largest groups were citizens of Nepal, Sri Lanka, and Turkey, while the Romanian labor market has also been actively attracting workers from India and Bangladesh in recent years. For the housing market, this is particularly important in the rental, dormitory, and affordable housing segments in major cities, rather than in the premium segment of apartment purchases.
Georgia’s residential real estate market maintained moderate growth in the first quarter of 2026. According to the National Statistics Service of Georgia, the housing price index rose by 1.8% quarter-over-quarter and by 3% year-over-year. Since 2020, the cost of residential real estate in the country has increased by 62.3%.
Apartments saw the most significant price increases. In the first quarter, apartment prices rose by 2% quarter-over-quarter and 3.3% year-over-year, while private homes increased by 1.1% and 1.8%, respectively. This indicates more stable demand specifically for the apartment segment, particularly in the capital.
The highest prices continue to be recorded in the prestigious districts of Tbilisi. Among apartments, Mtatsminda leads with an average price of about $2,542 per square meter, followed by Vake at about $2,222, and Krtsanisi at about $1,662 per square meter. In the single-family home segment, the most expensive districts are Mtatsminda at around $1,803 per square meter, Vake at $1,679, and Didube at $1,582 per square meter.
For buyers of new construction, the stage of completion remains an important factor. According to the publication, average asking prices in the first quarter were approximately $1,639 per square meter for “green frame” apartments, $1,343 per square meter for “white frame” apartments, and $1,239 per square meter for “black frame” apartments. However, the source itself notes that these are asking prices on popular online platforms, not final transaction prices.
Overall, the new data confirms that the Georgian housing market continues to grow, albeit without sharp spikes. The main driver is the capital, and above all, high-quality urban housing in Tbilisi’s expensive neighborhoods, where prices have already noticeably exceeded $2,200 per square meter.
In Kyiv’s primary housing market in 2026, apartments with European-style layouts have effectively become the new standard of demand. According to an analytical study by the development company Intergal-Bud, their share of the demand structure is 60–70% depending on the segment, and in certain comfort+ and business-class projects, it already exceeds 75%.
As the company notes, the trend, which began as early as 2022, became firmly established in 2025–2026. While the share of demand for apartments with European-style layouts was about 38% in 2022 and 52% in 2024, it exceeded 60% in 2025 and continued to grow in the first quarter of 2026.
Changes to the “єОселя” state program, which took effect in February 2026, served as an additional growth factor. The new area standards stipulate 52.5 square meters for a family of 1–2 people plus 21 square meters for each additional family member, while the maximum housing area eligible under the program is significantly limited. If an apartment exceeds the established standard by more than 10%, the buyer effectively loses the opportunity to take advantage of preferential financing or is forced to cover the significant difference in cost on their own.
“Classic layouts with long hallways, large unproductive areas, and small, isolated kitchens are becoming economically unviable. Today, buyers value not the number of square meters, but the lifestyle the apartment offers. A spacious kitchen-living room, separate bedrooms, a minimum of hallways, and thoughtful zoning are no longer just a bonus but a basic requirement. “This is particularly noticeable among families who are buying a home to live in themselves, rather than as an investment,” the study quotes Elena Ryzhova, Commercial Director of Intergal-Bud.
According to the company’s data, among the largest category of first-time homebuyers—people under 40—one in two chooses one- or two-bedroom apartments with open-plan layouts ranging from 38 to 60 square meters. The primary motivation is purchasing a home for personal residence. Buyers over 40 are more likely to choose two-bedroom or ergonomically designed three-bedroom apartments ranging from 65 to 85 square meters, where privacy, separate functional zones, and comfort for the whole family remain key factors.
Intergal-Bud estimates that, for the same floor area, a European-style layout provides 15–20% more usable space compared to traditional layouts, and the space efficiency ratio exceeds 85% versus 65–70% in older housing stock. This also means lower costs for repairs, heating, and maintenance.
At the same time, supply is not yet keeping up with demand. According to the company’s analysts, only one in seven apartments in new buildings fully meets the criteria for a true Euro-style layout—a spacious kitchen-living room, separate bedrooms, no “dead” hallways, and logical functional zoning.
The company believes that apartments with excess square footage and outdated layouts have already fallen out of active demand, while compact and functional European-style layouts continue to sell quickly even in challenging market conditions.
According to Intergal-Bud’s estimates, in 2026–2027 the market may face a shortage of high-quality finished housing specifically in the segment of functional comfort-class apartments, which best align with the new demand structure. The company cites the updated terms of the “єОселя” program, the limited number of new projects, rising construction costs, and accumulated pent-up demand as the main market drivers.
“Intergal-Bud” is one of Ukraine’s largest real estate development companies, operating in the residential real estate market since 2003. The company is implementing projects in Kyiv, Lviv, Chernivtsi, Zhytomyr, Rivne, Uzhhorod, and other cities. The developer’s portfolio includes dozens of residential complexes, and its main focus remains on the construction of comfort-, comfort+, and business-class housing.
The vacation rental market in neighboring Bulgaria may see a significant increase in housing prices—by approximately 25–30%. According to the Novinite website, the reason cited is the entry into force on May 20, 2026, of new European regulations for short-term rentals, which could result in up to half of the listings on major online platforms being removed due to non-compliance.
According to market participants, the main effect will be linked not to a surge in demand but to a reduction in supply. If some small-scale landlords exit the market due to new administrative requirements and rising costs, the number of legally available apartments in popular resorts will decrease, which will drive prices up. At the same time, representatives of the hotel sector believe that the market will become more transparent, and consumers will be better protected from informal and misleading offers.
Based on available market indicators, in 2025, renting resort accommodation in Bulgaria remained relatively affordable by EU standards. As of April 2026, average rental rates in resort areas ranged from approximately 5 to 11 euros per square meter per month, depending on location and type of accommodation. This means that a 35–40-square-meter studio typically cost around 175–440 euros per month, while a 55–70-square-meter apartment cost approximately 275–770 euros per month.
Turkey’s housing market is showing the first signs of a possible stabilization in foreign demand following a prolonged period of decline. According to Hurriyet Daily News, market participants expect a gradual recovery in activity among foreign buyers, although statistics remain weak for now. In March 2026, foreigners purchased 1,353 residential properties in Turkey, a 20% decrease from the previous year, and the share of transactions involving foreigners in total housing sales amounted to only 1.2%.
Expectations for a recovery in demand are linked not so much to a sharp turnaround that has already begun, but rather to the fact that the market appears to be approaching the bottom of the cycle. Over the past two years, foreign activity in Turkey has declined significantly amid changes in the price environment, currency fluctuations, adjustments to the rules regarding residence permits and citizenship through investment, as well as a general cooling of interest from some traditional buyers. At the same time, market participants themselves believe that after such a sharp decline, the sector may begin to return to a more stable level of demand.
For Ukrainian buyers, Turkey remains one of the most prominent foreign housing markets. Over the past few years, Ukrainian citizens have been among the most active foreign buyers of real estate in the country. This is confirmed by official TurkStat statistics: in January 2023, Ukrainians ranked fourth among foreign homebuyers in Turkey; in March 2024, they ranked third; and in December 2025, they were once again among the top three, following citizens of Russia and Iran.
This trend shows that even against the backdrop of a general decline in foreign demand, Ukrainians maintained a significant presence in the Turkish market. For Ukrainian buyers, Turkey traditionally combines several attractive factors: a relatively wide selection of housing, a purchase process that is straightforward for foreigners, a high volume of supply in resort areas and major cities, as well as the opportunity to use real estate as a means of residence, recreation, or capital preservation.
