Property prices in Spain in 2024

Spain is a country that attracts foreign investors with the opportunity to make profitable investments in property of the kingdom. It attracts not only with a comfortable climate, developed infrastructure and quality of constructed houses, but also with the possibility of good rental income. In most cases, the investor gets the opportunity to obtain a residence permit in Spain, as well as all the rights and privileges of citizens of this country, with the exception of political rights.

According to Spain’s largest real estate database idealista, property prices in the country have been experiencing steady growth over the past 10 years. For the last year (from January 2023 to January 2024) the increase in most provinces of the Mediterranean coast and Madrid averaged 5–10%. And in some resort areas it reached up to 20%. However, the cost per square metre of residential and commercial property in Spain remains lower than the cost in other regions of Southern Europe: France and Italy. The Spanish real estate market offers a large number of new residential buildings on the coast and in big cities with good infrastructure, including a swimming pool, sports grounds and parking on the territory.

Property prices in different regions of Spain

Villas and apartments on the Mediterranean coast usually are in great demand: Costa Blanca, Costa Brava, Costa Dorada, Costa del Sol, as well as in Barcelona and Madrid. As a result, the value of property and its annual growth in these regions is much higher than in the central provinces of Spain.

Source: idealista

Catalonia

Catalonia is a historical region in the north of Spain, bordering the territory of France and located between the Pyrenees and the Mediterranean coast. The capital of the region is Barcelona. Catalonia has specific cultural and linguistic traditions different from the rest of other Spain regions. Today Catalonia is the international touristic centre. It is widely known for its wineries, architectural and art masterpieces, the ski resorts in the Pyrenees and sea resorts with the cleanest beaches.

The length of the Catalan coastline is 580 km. It includes the Costa Brava, Costa Dorada and the sea line of Barcelona beaches. Catalonia is a home to several important nature reserves in Spain and one of the UNESCO geoparks — the Central Catalonia UNESCO Global Geopark.

Costa Brava

Costa Brava is the northernmost coast of Spain and located between the city of Blanes and the border with France. The landscape of the coast includes picturesque rocky bays and hills covered with pine forest. The peaks of the Pyrenees are clearly visible on the horizon in any weather.

Costa Brava is characterised by many small historical villages with stone low-rise architecture, mediaeval castles and cathedrals in the architectural style of Southern Gothic. Private beaches allow you to enjoy nature, and coniferous thickets — let you hide from the sun on a hot day.

Lloret de Mar

Lloret de Mar is the largest and most visited resort on the Costa Brava in Spain. The historical settlement on the site of the modern city was formed during the development of the region by the Romans, and flourished during the Spanish colonisation of America in the XV–XVIII centuries. The formation of the city as a seaside resort was in the second half of the 20th century and is associated with the widespread beach tourism among residents of European countries and the United States.

Today Lloret de Mar is mostly known for beaches marked with blue EU flags, as well as for its hotels, restaurants of Catalan cuisine and boutiques at the seaside, a small historical centre and coastal surroundings built up with private villas. From the central embankment, you can reach neighbouring towns by ferries.

Lloret de Mar is easy to reach from Barcelona International Airport by car or by train. The road takes about 40 minutes. Ski resorts and nature reserves in the Pyrenees, as well as the nearest French border towns, can be reached in an hour by car.

You can purchase property in Lloret de Mar at a cost of 2,171 euros per square metre. The rental rate is from 12.3 euros per square metre. The annual price growth in the Lloret de Mar region was 3.9%.

Girona

Girona is a small historical city, the administrative centre of the province of the same name in the north of Catalonia, located 20 km from the Costa Brava. Girona is primarily known for its well-preserved historical centre with mediaeval architecture and the Cathedral of Saint Mary with the world’s largest Gothic cathedral nave.

There are several historical fortresses in the surroundings of the city. Girona is the city closest to the three natural national parks of Catalonia, which can be reached in 30 minutes by car.

You can buy property in Girona at a cost of 2,508 euros per square metre. The rental rate starts from 11.8 euros per square metre. The annual price growth in the Girona region was 10.8%.

Figueres

Figueres is a small historical commune in the north of Catalonia, founded by Roman legionnaires in the II century BC. Currently, the city is known primarily for the Salvador Dali Theater-Museum, which attracts many tourists from all over the world, and the resort infrastructure for a comfortable seaside holiday on the beaches of the Costa Brava 10 km away from the city.

The development of Figueres as a seaside resort was in the 50s of the XX century, when the political elite of Spain became interested in the resort potential of the Costa Brava. Figueres is just 20 km from the French border. There are several nature reserves, an aquapark, a zoo and many historical sights in the surroundings of the city. The drive from Figueres to Barcelona International Airport takes about 1.5 hours by car.

You can buy property in Figueres at a cost of 1,327 euros per square metre. The annual price growth in the Figueres region was 5.1%.

Barcelona

Barcelona is the capital of Catalonia, the second largest city in Spain, located on the seashore between the Costa Brava and Costa Dorada, 120 km from the border with France. Barcelona is known primarily as the cultural capital of Spain and a city of great world historical heritage. Barcelona is often associated with the oeuvres of the famous Spanish architect Antonio Gaudi, the author of the Sagrada Familia Cathedral and other architectural buildings in the Art Nouveau and Neo-Gothic styles.

The urban city plan of Barcelona is designed in such a way that the city faces the sea and stretches along the seashore. The sea promenade is the focus of Barcelona’s life: running trails and sports grounds, the best restaurants of Catalan cuisine and 5 km of golden sand beach runs alongside it. Outside the city there are other beaches of the province of Barcelona, which are conveniently accessible both by car and by train.

The 1992 Olympic Games, held in Barcelona, greatly influenced the development of the city’s transport infrastructure. From Barcelona, you can take a high-speed train to Madrid, the Spanish cities of neighbouring provinces along the coast, as well as cities in France. The international airport accepts flights from both European and foreign countries. The seaport serves cruise Mediterranean liners. Due to the warm climate in the winter months, the temperature rarely drops below 10 degrees and the city remains blooming all year round.

You can purchase property in Barcelona at a cost of 4,259 euros per square metre. The rental rate is from 20.8 euros per square metre. The annual increase was 5.6%.

Badalona

Badalona is a northern suburb of Barcelona, located along the Mediterranean coast, as well as an independent historical settlement, the foundation of which is associated with the period of Roman influence in this region in the 1st century AD.

Compared to Barcelona, Badalona is a quieter and more peaceful place, suitable for those who appreciate privacy but want to stay close to the cultural capital of Catalonia. It takes about 10 minutes to get to Barcelona by public transport. The beaches of Badalona are wide and long. Promenade with palm trees stretches along the entire coast. The old town of Badalona has preserved architectural objects of the Roman era and the Middle Ages.

You can purchase property in Badalona at a cost of 2,168 euros per square metre. The rental rate starts from 14.45 euros per square metre. The annual increase was 4.6%.

Castelldefels

Castelldefels is a southern suburb of Barcelona, which is 20 km from the centre of the capital of Catalonia and 15 km from Barcelona International Airport. The history of the city begins in the 10th century AD, and the development of the commune as a seaside resort took place in the 1950s. The city is popular for sea tourism, primarily among residents of Barcelona and other cities in the Catalonia region.

The length of the promenade in Castelldefels is 5 km. The beaches are wide, with a long entrance into the water. The city itself is a small low-rise commune surrounded by hills with evergreen bushes.

You can purchase property in Castelldefels at a cost of 3,712 euros per square metre. The rental rate starts from 17.2 euros per square metre. The annual increase was 0.4%.

Costa Dorada

The Costa Dorada is the southernmost coast of Catalonia, it stretches for 200 km from Vilanova i la Geltrú to Alcanar. The landscape of the coast includes long sandy beaches surrounded by pine-covered hills.

Tarragona

Tarragona is one of the oldest cities in Spain, existing for more than 2000 years. The city is rich in historical sites, many of which are classified by UNESCO as World Heritage Sites, such as the Roman amphitheatre for gladiator fights and the Romanesque-Gothic Cathedral of Tarragona. The city also has several museums, and in the suburbs of Tarragona there is the largest amusement park in southern Europe — Port Aventura.

Tarragona has a 15-kilometre coastal area with beaches with golden sand. The city can be conveniently reached from Barcelona International Airport by car or train in 1 hour, Tarragona is also connected by railway with Madrid, which can be reached by high-speed train in 4 hours.

You can buy property in Tarragona at a cost of 1,863 euros per square metre. The rental rate starts from 10 euros per square metre.

Sitges

Sitges is a small picturesque historical commune north of Tarragona, the cultural and art centre of the Costa Dorada. The city gained its popularity in the 19th century thanks to the Catalan post-impressionist artist Santiago Rusiñol, who founded his studio in Sitges, after which for many years it became a place of attraction for bohemians. In the 1960s, Sitges was known as the centre of Spanish counterculture. The atmosphere of the commune is sometimes compared to Saint-Tropez and Ibiza.

The city itself is a small bay with a picturesque view of the Church of St. Bartholomew of the XVII century. The beaches of Sitges are long and wide, with fine golden sand. In the depths of the old city and on the periphery, you can see luxury villas with palm trees — the heritage of former Spanish immigrants who became rich in Cuba and returned back to Spain. The International Fantastic Film Festival is held annually in Sitges.

You can purchase property in Sitges at a cost of 4,557 euros per square metre. The rental rate is from 16.16 euros per square metre. The annual increase was 6.3%.

Valencia

Valencia is a region in eastern Spain, including the provinces of Alicante, Castellón and Valencia. The region has a different cultural and historical heritage and it is attractive both in terms of resort holidays and active urban tourism.

The capital of the autonomous community, Valencia, is a settlement that has existed for more than 2000 years and preserves the memory of the Carthaginian, Roman and Arab influences. The city is home to the Holy Grail, recognized by the Vatican, the architectural heritage of Southern Gothic and Art Nouveau is well preserved (Valencia Cathedral, Central Market), the famous futuristic architectural complex — the City of Arts and Sciences by architect Santiago Calatrava was built on the bottom of the Turia River. The Route of the Borgias also runs through the region, connected with the historical sites of the influential Borgia family in Spain and Italy.

The entire Valencian coast is an endless resort towns with wide, long beaches of golden and white fine sand, marked with blue EU flags. The climate of Valencia is characterised by hot, long summers and mild, warm winters.

Costa Blanca

The Costa Blanca is the pearl of the Spanish coast of the Mediterranean Sea, a coast stretching for 200 km from the city of Denia to the bay of Pilar de la Horadada in the province of Alicante. The resorts of the Costa Blanca are mostly small towns on the coast with high-rise grand hotels and premium and elite class apartment complexes with swimming pools, golf courses and underground parking. The lines of skyscrapers are built right along the line of beaches.

There are 9 nature parks and reserves in the vicinity of the coast, including the largest palm grove in Europe, Elche, 25 yacht clubs, 22 golf courses and one of the largest theme parks in Europe, Terra Mitica.

Benidorm

Benidorm is a city in the northern part of the Costa Blanca, the most famous resort in the province of Alicante, primarily due to the developed tourism industry. The city is most popular with vacationers from the UK, the Netherlands and Belgium, and is also considered one of the first resorts in Europe, whose hotels offered package tours with a full range of included services to tourists.

The history of the development of Benidorm as a seaside resort begins in the 1920s, and the peak of popularity and development occurred in the 1950s — 1980s, when the coastline of high-rise hotels in Benidorm were built, and vibrant nightlife of the city together with a relaxed time on the beach formed a special image of a seaside resort on the Costa Blanca.

Benidorm is known as the city of skyscrapers in Spain, as it houses 8 of the 20 tallest buildings in the country. The entire embankment line and the inner streets of the city are built up with high-rise buildings in the modernist style: complexes of private apartments, hotels and offices. The promenade along the beach is a concentration of restaurants, bars and nightclubs. Every year Benidorm hosts the Benidorm Low Festival of indie music. Alicante Airport can be reached in 30 minutes by car or train along the coast.

You can purchase property in Benidorm at a cost of 2,528 euros per square metre. The rental rate starts from 13.2 euros per square metre. The annual price growth in the Benidorm region was 12.6%.

Villajoyosa

Villajoyosa is a small commune south of Benidorm, known for its architecture of low-rise buildings along the waterfront, the facades of which are painted in different bright colours. Many beaches of Villajoyosa are marked with blue EU flags. The city is located in such a way that from any part of Villajoyosa it is convenient to walk to the promenade and the beach, as well as public transport stations.

You can purchase property in Villajoyosa at a cost of 2,262 euros per square metre. The rental rate is from 11.5 euros per square metre. The annual price growth in the Villajoyosa region was 19.4%.

Alicante

Alicante was an important commercial seaport and fortress of the Mediterranean in the past, preserving the Greek, Phoenician, Roman and Arab presence, today it is a large seaside resort on the Costa Blanca, known for its long beaches, developed transport infrastructure, urban environment and hot climate with a predominant number of sunny days a year. The development of the city as a resort began in the 1950s, and soon many high-rise buildings of hotels and apartment complexes in the modernist style were erected in Alicante, and an embankment was equipped along the entire beach line.

Alicante is a popular place for the purchase of secondary housing and relocation at retirement age of residents of the countries of Northern Europe and America. In addition to the tourist infrastructure, the city has a business centre, as well as a developed film industry. The headquarters of the European Union Intellectual Property Office is located in Alicante.

Among the sights of Alicante: Alicante Museum of Contemporary Art with works by Kandinsky, Chagall and Picasso, the historic fortress of Santa Barbara on a hill overlooking the city, Catholic cathedrals in the Baroque and Southern Gothic styles. The city has a large international airport. There are direct ferries from the port of Alicante to the Balearic Islands and Algeria.

You can purchase property in Alicante at a cost of 1,948 euros per square metre. The rental rate is from 10.7 euros per square metre. The annual price growth in the Alicante region was 17.9%.

Torrevieja

Torrevieja is a small resort town in the south of the Costa Blanca, built up mainly of low-rise residential complexes and hotels, as well as private villas. The coast of Torrevieja is known by small bays with sandy beaches and palm trees, as well as a rocky landscape among low hills overgrown with bushes. The western part of the city is located in close proximity to the pink salt lake of Torrevieja.

Torrevieja is extremely popular for relocation and purchase of a secondary house among residents of European countries, as well as Great Britain and America. Due to this, the city is a multinational centre. There are several golf courses and nature parks in the vicinity of Torrevieja, and Habanera Festivals are traditionally held in August. The city can be reached from Alicante Airport in 1 hour by car.

You can purchase property in Torrevieja at a cost of 1,816 euros per square metre. The rental rate starts from 10 euros per square metre. The annual price growth in the Torrevieja region was 13.1%.

Punta Prima

Punta Prima is a small resort south of Torrevieja, in the southernmost part of the Costa Blanca. The resort is known as a quiet and peaceful place for a family holiday on the coast surrounded by palm trees and low hills. Seafood restaurants, small boutiques and supermarkets are located on the Punta Prima waterfront. There are several golf courses and nature reserves in the surrounding area. Alicante International Airport is just over 1.5 hours away by car.

You can purchase property in Punta Prima at a cost of 2,363 euros per square metre. The rental rate is from 10.2 euros per square metre. The annual price growth in the Punta Prima region was 3%.

Castellón de la Plana

Castellón de la Plana is a small historical municipality north of the city of Valencia in the province of Castellón. The settlement was founded during the Moorish influence on the Iberian Peninsula. Today, the city is known primarily for its annual music festivals of alternative and indie music, as well as reggae: Tanned Tin, Festival Internacional de Benicàssim and Rototom Sunsplash Festival.

In the Castellón de la Plana itself, the remains of a mediaeval town and a cathedral in the style of Southern Gothic have been preserved. 2 km from the city centre there is an embankment with 6 km of beaches and a small port.

You can purchase property in Castellón de la Plana at a cost of 1,219 euros per square metre. The rental rate starts from 7.4 euros per square metre. The annual price growth in the Castellon de la Plana region was 8.7%.

Murcia

Murcia is a historical region in the south-east of Spain, with cultural and geographical features that differ from other regions. Murcia is located between the regions of Valencia and Andalusia, the entire coast of Murcia is part of the Costa Calida. The specific location of Murcia helps to form a hotter and drier climate than in other regions of Spain, due to this, Murcia is known as a place of cultivation of many fruit trees and flowers exported throughout Europe.

The administrative centre of the region is located in the city of Murcia, a historical settlement in a distance from the sea coast. The city was founded during the period of Arab expansion in the 9th century AD and has preserved numerous architectural monuments of the Moorish period. The urban development is distinguished by a variety and mix of architectural styles: Baroque, Spanish Gothic, Neoclassicism and Art Nouveau. One of such buildings is the Murcia Cathedral.

Costa Cálida

Costa Cálida is the Mediterranean coast of the Murcia region with a length of 250 km. Low mountains, overgrown with small shrubs, come close to the shore along the entire coast. One of the most recognizable cities of the Costa Cálida, Cartagena — was founded in the II century BC by the Phoenicians.

You can purchase property in Cartagena at a cost of 1,190 euros per square metre. The rental rate starts from 7.4 euros per square metre. The annual price growth in the Cartagena region was 2.7%.

Madrid

Madrid is the capital and largest city of Spain. The city is located in the centre of the Iberian Peninsula, at an equal distance from all major ports of the country. The city was founded in the 10th century AD during the Moorish domination of the peninsula. Since the XVIII century, Madrid has been the capital of Spain and got its architectural image in the style of neoclassicism and Art Nouveau.

Today Madrid is the cultural and business centre of the country, it is home to the majority of the head offices of Spanish companies, the Prado Museum, the Museo Nacional Centro de Arte Reina Sofía and the Thyssen-Bornemisza Museum, which are among the 100 most visited museums in the world. The city is surrounded by national parks and UNESCO cultural sites.

The capital of Spain is suitable for relocation for those who appreciate the dynamism of life and developed urban infrastructure. Madrid metro is the second largest in Europe (after London), and the international airport is the largest hub connecting Europe and Latin American countries.

You can buy property in Madrid at a cost of 4,189 euros per square metre. The rental rate starts from 18.2 euros per square metre. The annual price growth in the Madrid region was 8.2%.

Andalusia

Andalusia is the southernmost region of Spain, centred in the city of Seville, separated from the coast of Africa by the Strait of Gibraltar. The region is primarily known for being the centre of Arab civilization on the Iberian Peninsula in the Middle Ages and today has preserved a large number of monuments of Moorish culture on its territory.

The beaches of the Andalusian coast are long bays surrounded by close-fitting rocky mountains. The coastal vegetation is palm trees and evergreen bushes.

Costa del Sol

The Costa del Sol is the 150 km long coast of Andalusia, stretching from the commune of La Línea de la Concepción to Nerja. The tourist boom in this region began in the 1920s with the opening of the first golf course and sea beach east of Malaga, and its heyday occurred in the 1950s — 1980s.

The Costa del Sol is one of the most popular vacation spots for the world’s elite and aristocracy, as well as for relocation among wealthy retirees of the Nordic countries. The coast is especially popular with tourists from the UK, Scandinavian countries, Germany, France and Saudi Arabia.

Marbella

Marbella is a world-renowned resort, a favourite place of recreation for aristocracy, bohemians, as well as political leaders and owners of large businesses. Its popularity is associated with the construction by Prince Alfonso de Hohenlohe-Langenburg of a private villa in the 1950s, which later became a residence and club for representatives of the crown, show-business celebrities and the political elite. The residence is associated with the names of such famous personalities as Rothschild, Bismarck, Queen Fabiola of Belgium, Prince of Monaco and his wife Grace Kelly, dictator of Cuba Fulgencio Batista, King Fahd bin Abdulaziz Al Saud of Saudi Arabia.

Today Marbella is a small seaside resort with clean beaches marked with blue EU flags, luxury hotels and premium apartments located along the coast, a marina with expensive yachts, golf clubs and a well-preserved old town. The port of the city serves as a marina for Mediterranean cruise liners, and the surroundings of Marbella are well suited for hiking through the low rocky mountains with panoramic sea views.

You can purchase property in Marbella at a cost of 4,510 euros per square metre. The rental rate starts from 16.2 euros per square metre. The annual price growth in the Marbella region was 11%.

Malaga

Malaga is a city and port in the south of the Iberian Island, the administrative centre of the Costa del Sol, a cultural centre and a transport hub. The city is located in a small bay on the Mediterranean coast, surrounded by mountains. The historical settlement was founded by the Phoenicians in the VIII century BC, which makes it one of the oldest cities in Europe.

The city is interesting primarily as a seaside resort because of the long sandy beaches located along the entire coast of the city and beyond. The first sea line is built up with high-rise buildings of hotels and apartment complexes in the modernist style. The city is famous for the Pablo Picasso Museum and well-preserved buildings of the Moorish period and the late Spanish Southern Gothic and Baroque. The Malaga Spanish Film Festival is held annually. There is also a large international airport in Malaga.

You can buy property in Malaga at a cost of 2,686 euros per square metre. The rental rate starts from 13.7 euros per square metre. The annual price growth in the Malaga region was 13.9%.

Manilva

Manilva is a resort town and historical settlement on the Costa del Sol. Manilva gained its popularity as a place for beach holidays in the 1970s, during the same period several golf courses and a marina were built near the city. Most of the architectural buildings of the city are painted white — in the style of the traditional villages of the Andalusia region.

Not far from Manilva is the coastal resort town of Estepona, a popular place for relocation among residents of the northern European countries. The city has more than 20 km of beaches, a well-preserved old town. In the 1990s, the Walt Disney Company chose Estepona as the original site for the construction of the first Disneyland, but subsequently changed its decision in favour of Paris.

You can purchase property in the Manilva region at a cost of 2,203 euros per square metre. The rental rate starts from 10 euros per square metre. The annual price growth in the Manilva region was 4.7%.

Basque Country

The Basque Country is a region in northern Spain at the Bay of Biscay of the Atlantic Ocean. The region has a typical oceanic climate with warm winters and hot moist summers, with evergreen and seasonal vegetation covering the mountains and hills. The Atlantic coast, unlike the Mediterranean, is characterised by year-round strong winds and large waves suitable for surfing.

The culture of the Basque Country is different from all other regions of Spain. The territory of the region has never experienced Arab influence. The Basque language is not related to any language in Europe. The regional Basque cuisine is widely known outside the country.

Bilbao

The largest city in the Basque Country is located at the side of the Nervion River, which flows into the ocean a few kilometres from the city centre. Bilbao is a historical settlement founded in the II century BC and has played a significant role in the development of the region since the XI century AD. Today, Bilbao is a large administrative industrial centre, since the mid-1990s participating in the international urban revitalization program — the transformation of former industrial territories into renovated urban public spaces.

One of the masterpieces of urban modern architecture is the futuristic Guggenheim Museum in Bilbao, whose building is recognized as one of the most spectacular buildings in the deconstructivist style. Other projects within the framework of the urban program were: the Euskalduna Concert Hall, the Santiago Calatrava Bridge and the Norman Foster metro station network. A few kilometres from Bilbao on the coast there are many beaches suitable for surfing, as well as hiking trails along the white cliffs.

You can purchase property in the Bilbao region at a cost of 3,276 euros per square metre. The rental rate is from 13.8 euros per square metre. The annual price growth in the Bilbao region was 2.4%.

San Sebastián

A small seaside town at the Bay of Biscay in northern Spain, a famous resort among the European aristocracy and bohemians since the 19th century. Thanks to the crescent-shaped bay on the coast of San Sebastián, the waves are not as high as on other oceanic beaches in the region, which makes the resort convenient for swimming and beach vacations.

Today, San Sebastián is a few kilometres of the embankment with high-rise buildings of hotels and private residences with restaurants and music bars. The historical part of the city has also been preserved — on a small peninsula. Every year, San Sebastián hosts jazz music festivals and a fantastic film festival.

​​​​​​You can purchase property in the San Sebastián region at a cost of 5,391 euros per square metre. The rental rate starts from 17.3 euros per square metre. The annual price growth in the San Sebastián region was 5%.

The Canary Islands

The Canary Islands are an archipelago consisting of 7 volcanic islands in the Atlantic Ocean off the coast of Africa, which belong to the Kingdom of Spain. The largest island, Tenerife, is a popular seaside resort with black volcanic sand beaches. The bays are surrounded by high rocky mountains overgrown with evergreen tropical plants. Tenerife is called the «island of eternal spring» because of the moist, hot oceanic climate in both summer and winter, formed under the influence of the dry winds of the Sahara.

Tenerife receives about 3 million tourists annually, mainly from the countries of Northern Europe, Great Britain and USA. There is an international airport on the island. Among the well-known places of Tenerife are the Teide volcano, which is located in a UNESCO-protected national park, several historical cities, the Pyramids of Güímar and the Auditorio de Tenerife in a futuristic modernist style.

You can purchase property in Tenerife at a cost of 2,576 euros per square metre. The rental rate is from 12.5 euros per square metre. The annual price growth in the Tenerife region was 20.4%.

The Balearic Islands

The Balearic Islands are an archipelago off the east coast of Spain, including the islands of Ibiza, Mallorca, Menorca, etc. The archipelago is a popular seaside resort destination among EU countries and the UK. The hot, dry Mediterranean climate, beaches with azure water, the mountain landscape and evergreen plants make the archipelago an attractive place for recreation from the high-speed rhythm of big cities.

Ibiza is known for its resorts with a vibrant nightlife, techno music festivals, there are many bars and restaurants near the beaches. The resorts of Mallorca are more suitable for those who prefer a silent holiday, as well as families with children and pensioners.

You can purchase property in the Balearic Islands at a cost of 4,147 euros per square metre. The rental rate starts from 16 euros per square metre. The annual price increase in the Balearic Islands region was 13.9%.

Price dynamics

From 1996 to 2007, the Spanish real estate market experienced a boom. During these years, housing in the country has risen in price by an average of 197%. Adjusted for inflation, the growth was 117%. In Catalonia, Andalusia and Valencia, prices soared by 250%, or 155% adjusted for inflation. Spain was one of the European countries with the highest rate of price growth.

From 2006 to the end of 2012, real estate in Spain fell in price by more than a third — by 34.6%. In 2006, a square metre cost an average of 2,892 euros (this was the apogee), and in 2012 — 1,891 euros.

The construction boom and the following crisis led to the fact that the demand for real estate in Spain turned out to be insufficient. This has led to oversupply in the market and a sharp drop in prices, especially on the Costa Blanca.

Spanish house prices fell by a total of 41.9% from the fourth quarter of 2007 to the third quarter of 2015. Adjusted for inflation, the drop was 46.8%.

Economic growth, low interest rates, affordable housing prices and an increase in the number of foreign investors have helped to restore the market.

From January 2015 to January 2020, property rose in price by 13.2% on average in Spain, the most expensive properties in Madrid — by 25.7%, Catalonia — 18.5% and Andalusia — 12.5%. A slight decline in prices was recorded in the regions of Asturias — by 6%, Extremadura — by 5.5% and Cantabria — by 4.8%.

In many coastal resort regions, such as Villajoyosa, Alicante, Benidorm, the Canary and Balearic Islands, annual growth reached up to 20%. In the cities of the Costa del Sol, the price increase was up to 13%, and the Costa Brava — an average of 5–10%. In many provinces, prices have equaled or exceeded the threshold of the pre-crisis period in 2006.

Our real estate experts in Spain will help you choose the best property for investment, as well as calculate the prospects for income from housing in a certain location.

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Author: Polina Fedotova