+ Property prices in Spain

Spain’s beaches and relaxed atmosphere have made it one of the most popular tourist destinations in the world

Spain has a great selection of property ranging from small apartments and luxury villas with swimming pools and golf courses. Real estate along Spain's Mediterranean coast, the Costa del Sol, Costa Blanca and Costa Brava, is the most sought-after by buyers.

Marbella on the Costa del Sol is both a top holiday destination and permanent town of residence for many foreign buyers, particularly Brits, Germans and citizens of the CIS states. Many investors also look for resort property in the Canary Islands and the Balearic Islands with Mallorca and Ibiza among the most popular. Average prices on the islands and in Barcelona start at over €1M. Apartments in Spain's large cities: Madrid, Barcelona, Malaga, Murcia and Granada are also eagerly sought after.

Foreigners account for 13% of the total residential real estate transactions in Spain. Brits lead the way with the French and Russians ranking second and third respectively. Both lower-end apartments in developments and luxury villas with swimming pools are in demand.

Resort property in Spain is modestly priced compared to other European countries. For instance on the Costa Blanca, a studio or one-bedroom flat located not far from the beach can cost €50,000–60,000.

Costa Brava in Spain’s Catalonia region is the most expensive of all four coastal regions: Costa del Sol, Costa Blanca, Costa Dorada and Costa Brava. Average property prices have surged up to €2,200/sq.m. Investors looking for better deals head to the Costa Blanca where prices are 50% lower. While in Catalonia, €150,000 would buy a tiny flat, it would be enough to buy an affordable detached three-bedroom house near the sea on the Costa Blanca.

Property prices in Spain, €/sq.m

Costa del Sol Balearic Islands Catalonia
Apartments (flats) 1,000–2,000 3,000 3,000
Detached property
(houses, villas)
1,200–3,000 3,000 2,000–3,000
Luxury property
(castles, mansions, estates)
3,000–5,000 4,000–9,000 4,000–5,000

Spain's real estate market boomed for over a decade from 1996–2007 when average prices skyrocketed 197%, or 117% with inflation adjustment. This happened all over the country, especially in Catalonia, Andalucía and Valencia, where peak price gains hit 250% or 155% including inflation. Spain’s property prices rose higher and faster than other European countries and serious challenges have emerged for the real estate market over recent years. The construction boom created excess supply, which triggered the bubble to burst and prices to drop sharply.

Property in Spain is now three times cheaper (−34.6%) than in 2006 when peak prices per square meter reached €2,892. In 2012, the same area cost just €1,891. The Spanish property market is just starting to recover and prices are expected to rise in certain segments over 2015.

Average housing prices in selected provinces of Spain in January 2015 Reported by Fotocasa.Es

Province €/sq.m % per annum
Alicante 1,292 -6.3
Almeria 1,212 -10.4
Asturias 1,636 -8.0
Balearic
Islands
1,819 -0.9
Barcelona 2,431 +4.7
Cantabria 1,862 -1.2
Girona 1,670 -8.9
Las Palmas 1,307 -4.6
Madrid 2,341 -0.6
Malaga 1,602 -3.5
Murcia 1,156 -8.4
Tarragona 1,359 -9.5
Valencia 1,402 +0.7
National
average
1,629 -6.0
 
 
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Alexander Hincu
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